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's recent momentum is driven by its solid Q4 earnings, with net income of $5.4 million, and its upgraded Zacks Rank to #1 (Strong Buy), reflecting growing optimism about its earnings prospects. The company's acquisition of Wichita Falls Bancshares is also expected to bolster its growth. Additionally, Investar's strong institutional ownership and favorable analyst recommendations underscore its potential.

1.c. Company Highlights

Last Price	29.49
Change Percentage	0.17%
Open	29.43
Previous Close	29.44
Market Cap ( Millions)	290
Volume	102596
Year High	31.77
Year Low	15.39
M A 50	27.96
M A 200	23.49

FCF Yield	4.57%
Dividend Yield	1.48%
ROE	8.30%
Debt / Equity	50.74%
Net Debt / EBIDTA	412.20%
Price To Book	0.96
Price Earnings Ratio	12.66
Price To FCF	21.89
Price To sales	1.89
EV / EBITDA	13.61

2. Transcript Summary

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3. NewsRoom

Critical Review: First Guaranty Bancshares (NASDAQ:FGBI) vs. Investar (NASDAQ:ISTR)

Feb -02

Source: defenseworld.net

All You Need to Know About Investar (ISTR) Rating Upgrade to Strong Buy

Jan -28

Source: zacks.com

Best Momentum Stocks to Buy for January 28th

Jan -28

Source: zacks.com

New Strong Buy Stocks for January 28th

Jan -28

Source: zacks.com

Best Value Stocks to Buy for January 28th

Jan -28

Source: zacks.com

Investar (ISTR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -23

Source: zacks.com

Investar Holding Corporation Announces 2025 Fourth Quarter Results

Jan -22

Source: accessnewswire.com

Analyzing Investar (NASDAQ:ISTR) & Home Bancorp (NASDAQ:HBCP)

Jan -18

Source: defenseworld.net

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

United Bancorp

A-Score: 6.0/10

Value: 4.4

Growth: 4.9

Quality: 4.4

Yield: 10.0

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

South Plains Financial

A-Score: 5.9/10

Value: 6.5

Growth: 5.8

Quality: 6.6

Yield: 4.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Investar Holding

A-Score: 5.8/10

Value: 6.3

Growth: 5.9

Quality: 5.9

Yield: 4.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

Enterprise Bancorp

A-Score: 5.7/10

Value: 6.4

Growth: 5.3

Quality: 6.7

Yield: 3.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

QCR Holdings

A-Score: 5.6/10

Value: 6.5

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

Customers Bancorp

A-Score: 5.0/10

Value: 6.4

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.82%

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

29.49$

Current Price

29.49$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA