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INVESTORS BANCORP INC (ISBC) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:ISBC - Common Stock

13.87
-0.35 (-2.46%)
Last: 4/6/2022, 8:00:03 PM
14.04
+0.17 (+1.23%)
After Hours: 4/6/2022, 8:00:03 PM
Fundamental Rating

2

Taking everything into account, ISBC scores 2 out of 10 in our fundamental rating. ISBC was compared to 383 industry peers in the Banks industry. ISBC may be in some trouble as it scores bad on both profitability and health. ISBC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year ISBC was profitable.
ISBC Yearly Net Income VS EBIT VS OCF VS FCFISBC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M

1.2 Ratios

Industry RankSector Rank
ROA 1.13%
ROE 10.66%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ISBC Yearly ROA, ROE, ROICISBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2 4 6 8 10

1.3 Margins

  • The Operating Margin and Gross Margin are not available for ISBC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 37.51%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ISBC Yearly Profit, Operating, Gross MarginsISBC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 10 20 30

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0

2. Health

2.1 Basic Checks

  • ISBC has about the same amout of shares outstanding than it did 1 year ago.
  • The debt/assets ratio for ISBC is higher compared to a year ago.
ISBC Yearly Shares OutstandingISBC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M
ISBC Yearly Total Debt VS Total AssetsISBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 5B 10B 15B 20B 25B

2.2 Solvency

  • A Debt/Equity ratio of 1.20 is on the high side and indicates that ISBC has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
ISBC Yearly LT Debt VS Equity VS FCFISBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 1B 2B 3B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 47.78% over the past year.
  • The Earnings Per Share has been growing by 16.49% on average over the past years. This is quite good.
  • Looking at the last year, ISBC shows a small growth in Revenue. The Revenue has grown by 2.36% in the last year.
  • Measured over the past years, ISBC shows a small growth in Revenue. The Revenue has been growing by 4.28% on average per year.
EPS 1Y (TTM)47.78%
EPS 3Y17.97%
EPS 5Y16.49%
EPS Q2Q%42.86%
Revenue 1Y (TTM)2.36%
Revenue growth 3Y6.58%
Revenue growth 5Y4.28%
Sales Q2Q%-7.76%

3.2 Future

  • Based on estimates for the next years, ISBC will show a small growth in Earnings Per Share. The EPS will grow by 4.70% on average per year.
  • ISBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y1.82%
EPS Next 2Y4.12%
EPS Next 3Y4.16%
EPS Next 5Y4.7%
Revenue Next Year7.31%
Revenue Next 2Y6.22%
Revenue Next 3Y5.52%
Revenue Next 5Y5.7%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ISBC Yearly Revenue VS EstimatesISBC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
ISBC Yearly EPS VS EstimatesISBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.43, the valuation of ISBC can be described as reasonable.
  • ISBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
  • ISBC is valuated reasonably with a Price/Forward Earnings ratio of 10.24.
  • The average S&P500 Price/Forward Earnings ratio is at 25.83. ISBC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.43
Fwd PE 10.24
ISBC Price Earnings VS Forward Price EarningsISBC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ISBC Per share dataISBC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ISBC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.73
PEG (5Y)0.63
EPS Next 2Y4.12%
EPS Next 3Y4.16%

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5

5. Dividend

5.1 Amount

  • ISBC has a Yearly Dividend Yield of 4.45%, which is a nice return.
  • ISBC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 4.45%

5.2 History

  • The dividend of ISBC is nicely growing with an annual growth rate of 13.80%!
  • ISBC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)13.8%
Div Incr YearsN/A
Div Non Decr YearsN/A
ISBC Yearly Dividends per shareISBC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • 44.23% of the earnings are spent on dividend by ISBC. This is a bit on the high side, but may be sustainable.
  • The dividend of ISBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.23%
EPS Next 2Y4.12%
EPS Next 3Y4.16%
ISBC Yearly Income VS Free CF VS DividendISBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M
ISBC Dividend Payout.ISBC Dividend Payout, showing the Payout Ratio.ISBC Dividend Payout.PayoutRetained Earnings

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INVESTORS BANCORP INC / ISBC FAQ

What is the ChartMill fundamental rating of INVESTORS BANCORP INC (ISBC) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ISBC.


What is the valuation status for ISBC stock?

ChartMill assigns a valuation rating of 3 / 10 to INVESTORS BANCORP INC (ISBC). This can be considered as Overvalued.


What is the profitability of ISBC stock?

INVESTORS BANCORP INC (ISBC) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for ISBC stock?

The Price/Earnings (PE) ratio for INVESTORS BANCORP INC (ISBC) is 10.43 and the Price/Book (PB) ratio is 1.18.


Is the dividend of INVESTORS BANCORP INC sustainable?

The dividend rating of INVESTORS BANCORP INC (ISBC) is 8 / 10 and the dividend payout ratio is 44.23%.