Independent Bank Corp. (Michigan) (IBCP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Peapack-Gladstone Financial Corp.

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Washington Trust Bancorp, Inc.

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HarborOne Bancorp, Inc.

Central Pacific Financial Corp.

Independent Bank Corp. (Michigan)

Horizon Bancorp, Inc. (Indiana)

Midland States Bancorp, Inc.

Luther Burbank Corp.

Why is Independent Bank Corp. (Michigan) ?

High Profitability with a Net Interest Margin of 2.64%

Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.04%

Positive results in Mar 26

NII(Q) Highest at USD 46.85 MM
ROCE(HY) Highest at 1.28%
DIVIDEND PER SHARE(HY) Highest at USD 0

With ROA of 1.05%, it has a expensive valuation with a 1.37 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.13%, its profits have risen by 2.6% ; the PEG ratio of the company is 2.8

High Institutional Holdings at 90.15%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 12.13% in the last 1 year, much lower than market (S&P 500) returns of 24.32%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Independent Bank Corp. (Michigan) should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Independent Bank Corp. (Michigan) for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Independent Bank Corp. (Michigan)

-100.0%

1.80

24.84%

S&P 500

24.32%

1.88

12.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.04%

EBIT Growth (5y)

-3.48%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

31.81%

Pledged Shares

Institutional Holding

90.15%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

8.54

EV to EBITDA

7.47

EV to Capital Employed

1.39

EV to Sales

2.19

PEG Ratio

2.69

Dividend Yield

0.13%

ROCE (Latest)

16.22%

ROE (Latest)

13.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

NII(Q)

Highest at USD 46.85 MM

ROCE(HY)

Highest at 1.28%

DIVIDEND PER SHARE(HY)

Highest at USD 0

CREDIT DEPOSIT RATIO(HY)

Highest at 88.27%

OPERATING PROFIT(Q)

Highest at USD 22.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 33.33 %

PRE-TAX PROFIT(Q)

Highest at USD 22.03 MM

-7What is not working for the Company

GROSS NPA (%)

OPERATING CASH FLOW(Y)

Lowest at USD 36.11 MM

ROCE(HY)

Lowest at 1.28%

Here's what is working for Independent Bank Corp. (Michigan)

NII

Highest at USD 46.85 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 22.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 33.33 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 22.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Credit Deposit Ratio

Highest at 88.27%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Here's what is not working for Independent Bank Corp. (Michigan)

Non Performing Loans (%)

Highest at 0.64% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Operating Cash Flow

Lowest at USD 36.11 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)