What Should You Know About Independent Bank Group Inc’s (IBTX) Future?
Independent Bank Group Inc (NASDAQ:IBTX) is predicted to grow its earnings per share by a high double-digit 55.27% over the next three years. With the recent EPS being $3.009, expected growth will push the upcoming EPS to $4.672. To assess the reasonability of IBTX’s earnings growth per share, we should look at its most recent growth rate delivered. View our latest analysis for Independent Bank Group
What can we expect from Independent Bank Group Inc (NASDAQ:IBTX) in the future?
Analysts are predicting good growth prospects for Independent Bank Group over the next couple of years. Expectation from the stock’s 6 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $3.009 to $4.672 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 55.27% over the next few years. In the same period and net income is predicted to grow from $62M to $97M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. IBTX’s earnings growth in the last five years was a unexciting 14.71%, indicating a relatively more bullish outlook for the company in the near future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
Next Steps:
For IBTX, I’ve compiled three key factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is IBTX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IBTX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IBTX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
