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Is Independent Bank (IBCP) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Independent Bank (IBCP - Free Report) . IBCP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.72, which compares to its industry's average of 12.40. Over the past 52 weeks, IBCP's Forward P/E has been as high as 11.83 and as low as 4.81, with a median of 10.29.

Investors should also note that IBCP holds a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IBCP's industry currently sports an average PEG of 2.13. Within the past year, IBCP's PEG has been as high as 1.38 and as low as 1.34, with a median of 1.37.

We should also highlight that IBCP has a P/B ratio of 0.86. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past 12 months, IBCP's P/B has been as high as 1.59 and as low as 0.62, with a median of 1.02.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IBCP has a P/S ratio of 1.48. This compares to its industry's average P/S of 1.79.

Finally, investors should note that IBCP has a P/CF ratio of 5.81. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.36. Over the past 52 weeks, IBCP's P/CF has been as high as 10.84 and as low as 4.18, with a median of 7.06.

These are only a few of the key metrics included in Independent Bank's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBCP looks like an impressive value stock at the moment.


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