Investar Holding Corporation (ISTR)
Valuation Overview•Is Investar Holding Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 41/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
ISTR demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 17.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $53.2M | -1.9% | — | — | +12.9% | |
| EBITDA | $11.2M | — | -14.4% | — | — | |
| Net Income | $12.0M | +13.1% | -13.8% | — | +12.5% | |
| EPS (Diluted) | $0.77 | +1.5% | -15.9% | +10.4% | +7.9% | |
| Free Cash Flow | $9.3M | +9.2% | -26.1% | +10.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 60.1% | 58.5% | 65.8% | 70.4% |
| Operating Margin | 17.6% | 16.1% | 18.7% | 20.0% |
| Net Margin | 16.8% | 13.2% | 15.2% | 15.5% |
| FCF Margin | 12.8% | 12.9% | 20.1% | 21.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.69 | $0.87 | +26.1% | ||
| Q1'26 | — | $0.56 | — | ||
| Q1'26 | $0.53 | $0.58 | +10.1% | ||
| Q1'26 | $0.54 | $0.58 | +7.4% | ||
| Q4'25 | $0.48 | $0.54 | +12.5% | ||
| Q3'25 | $0.40 | $0.47 | +17.5% | ||
| Q2'25 | $0.35 | $0.64 | +82.9% | ||
| Q1'25 | $0.39 | $0.61 | +56.7% |
Total return is +58.2% (1Y), outperforming the benchmark by +37.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +14.8% | +7.4% | — |
| 1Y | +58.2% | +37.4% | +2.3% |
| 3YCAGR | +38.7% | +19.2% | +10.7% |
| 5YCAGR | +7.5% | -4.1% | +8.8% |
| 10YCAGR | +7.2% | -6.5% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Investar Holding Corporation (ISTR) valuation, health, and returns.
Based on peer relative multiples, Investar Holding Corporation appears Cheap versus peers compared to industry peers.
Investar Holding Corporation has multiple valuation anchors: Peer Relative Fair Value: $42.73 | Wall Street Analyst Target: $31.50 (implying +5.4% upside). A convergence of these signals offers higher conviction.
Investar Holding Corporation displays fair financial health with a composite quality score of 41/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 5.2%.
Investar Holding Corporation pays a 1.3% dividend yield, covered by a 18% payout ratio with 12 years of growth, supplemented by a 0.7% buyback yield.
Investar Holding Corporation's current growth trajectory is Accelerating. The company achieved -1.9% 1Y revenue growth and +1.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 6 analysts, beating EPS expectations in 92% of recent quarters with a 11-quarter streak. The consensus price target represents a +5.4% change from current levels.
Investment risks for Investar Holding Corporation include: -12.3% 1-year max drawdown. Volatility risk is characterized by a beta of 0.70x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.