Investors Bancorp, Inc.
Investors Bancorp, Inc. Fundamental Analysis
Investors Bancorp, Inc. (ISBC) shows moderate financial fundamentals with a PE ratio of 10.47, profit margin of 37.50%, and ROE of 11.09%. The company generates $0.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ISBC's fundamental strength across five key dimensions:
Efficiency Score
WeakISBC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentISBC trades at attractive valuation levels.
Growth Score
ModerateISBC shows steady but slowing expansion.
Financial Health Score
WeakISBC carries high financial risk with limited liquidity.
Profitability Score
ModerateISBC maintains healthy but balanced margins.
Key Financial Metrics
Is ISBC Expensive or Cheap?
P/E Ratio
ISBC trades at 10.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ISBC's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Investors Bancorp, Inc. at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.93 times EBITDA. This is generally considered low.
How Well Does ISBC Make Money?
Net Profit Margin
For every $100 in sales, Investors Bancorp, Inc. keeps $37.50 as profit after all expenses.
Operating Margin
Core operations generate 51.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.09 in profit for every $100 of shareholder equity.
ROA
Investors Bancorp, Inc. generates $1.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Investors Bancorp, Inc. generates strong operating cash flow of $521.40M, reflecting robust business health.
Free Cash Flow
Investors Bancorp, Inc. generates strong free cash flow of $506.38M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.03 in free cash annually.
FCF Yield
ISBC converts 13.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ISBC Stacks Against Its Sector Peers
| Metric | ISBC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.47 | 18.86 | Better (Cheaper) |
| ROE | 11.09% | 847.00% | Weak |
| Net Margin | 37.50% | 4202.00% | Weak |
| Debt/Equity | 1.12 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 1.13% | -21543.00% (disorted) | Weak |
ISBC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Investors Bancorp, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical