Investar Holding Corporation (ISTR) | Investment Case

1. Company Snapshot

1.a. Company Description

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals and small to medium-sized businesses in South Louisiana.The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit cards; and mobile banking services.It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate lending, such as second mortgage loans; consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes.

In addition, the company offers cash management products, including remote deposit capture, virtual vault, electronic statements, positive pay, ACH origination and wire transfer, investment sweep accounts, and business Internet banking services.Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machine, interactive teller machines, merchant card, and mobile wallet payment services.The company operates through a network of 24 full service branches.

Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

Show Full description

1.b. Last Insights on ISTR

Investar Holding Corporation's recent performance was driven by strong Q3 earnings, beating estimates with $0.54 per share, a 20% year-over-year increase. The company's net income available to common shareholders rose to $5.7 million, up from $4.5 million in the previous quarter. A quarterly cash dividend of $0.11 per share was declared in September, demonstrating the company's commitment to shareholder returns. The recent earnings release highlights Investar's improving profitability, with a notable increase in earnings per share.

1.c. Company Highlights

Last Price	26.03
Change Percentage	-0.38%
Open	26
Previous Close	26.13
Market Cap ( Millions)	256
Volume	30311
Year High	26.33
Year Low	15.39
M A 50	23.6
M A 200	20.83

FCF Yield	5.18%
Dividend Yield	1.65%
ROE	8.84%
Debt / Equity	34.07%
Net Debt / EBIDTA	219.58%
Price To Book	0.87
Price Earnings Ratio	11.09
Price To FCF	19.31
Price To sales	1.68
EV / EBITDA	10.46

2. Transcript Summary

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3. NewsRoom

Here's Why Momentum in Investar (ISTR) Should Keep going

Nov -10

Source: zacks.com

Investar Holding Corporation Announces Acquisition Approvals

Oct -30

Source: accessnewswire.com

Can Investar (ISTR) Run Higher on Rising Earnings Estimates?

Oct -27

Source: zacks.com

Investar (ISTR) Tops Q3 Earnings and Revenue Estimates

Oct -20

Source: zacks.com

Investar Holding Corporation Announces 2025 Third Quarter Results and Wichita Falls Bancshares, Inc. Transaction Update

Oct -20

Source: accessnewswire.com

Investar Holding Corporation Declares Quarterly Common and Preferred Stock Cash Dividends

Sep -17

Source: accessnewswire.com

Investar (ISTR) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Jul -21

Source: zacks.com

Investar (ISTR) Beats Q2 Earnings and Revenue Estimates

Jul -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Banking and Related Activities

Expected Growth: 7.5%

Investar Holding Corporation's 7.5% growth in Banking and Related Activities is driven by increasing demand for digital banking services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on improving operational efficiency, investing in technology, and enhancing customer experience have contributed to its growth.

7. Detailed Products

Investar Trading Platform

A comprehensive online trading platform that provides real-time market data, technical analysis tools, and advanced order management capabilities.

Investar Portfolio Management

A portfolio management system that helps investors and financial advisors to manage and optimize investment portfolios.

Investar Risk Management

A risk management solution that provides real-time risk analytics and reporting to help investors and financial institutions manage and mitigate risk.

Investar Market Data and Analytics

A market data and analytics platform that provides real-time market data, news, and analytics to help investors make informed investment decisions.

Investar Wealth Management

A wealth management platform that provides a comprehensive suite of tools and services to help investors and financial advisors manage wealth.

8. Investar Holding Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Investar Holding Corporation is moderate due to the presence of alternative investment options for customers.

Bargaining Power Of Customers

The bargaining power of customers is low for Investar Holding Corporation due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Investar Holding Corporation due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is high for Investar Holding Corporation due to the relatively low barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high for Investar Holding Corporation due to the presence of multiple competitors in the financial services industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	56.78%
Debt Cost	6.78%
Equity Weight	43.22%
Equity Cost	7.70%
WACC	7.18%
Leverage	131.40%

11. Quality Control: Investar Holding Corporation passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Enterprise Bancorp

A-Score: 6.5/10

Value: 6.3

Growth: 5.3

Quality: 6.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

South Plains Financial

A-Score: 6.3/10

Value: 6.6

Growth: 5.9

Quality: 6.6

Yield: 4.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Investar Holding

A-Score: 6.1/10

Value: 6.3

Growth: 6.0

Quality: 5.9

Yield: 4.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

United Bancorp

A-Score: 6.0/10

Value: 4.4

Growth: 4.9

Quality: 4.5

Yield: 10.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

QCR Holdings

A-Score: 5.7/10

Value: 6.3

Growth: 8.3

Quality: 7.6

Yield: 0.0

Momentum: 4.5

Volatility: 7.3

1-Year Total Return ->

Customers Bancorp

A-Score: 5.0/10

Value: 6.5

Growth: 6.8

Quality: 3.8

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.27%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.18%

Investar Holding Corporation - US46134L1052

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ISTR

1.c. Company Highlights

Lower Quality

Strong Momentum

Average Growth

Earnings Beats

Revenues Beats

Stable Momentum

Higher Growth

Revenues Miss

Fairly Valued

Average Yield

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Banking and Related Activities

Expected Growth: 7.5%

7. Detailed Products

Investar Trading Platform

Investar Portfolio Management

Investar Risk Management

Investar Market Data and Analytics

Investar Wealth Management

8. Investar Holding Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Investar Holding Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.03$

Current Price

26.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA