Isabella Bank Corporation (ISBA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-12.9%

$35.54

vs $40.82 price

Levered DCF

$56.59

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.51

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.53×	13.97×	8.88×	7.97×	10.28×	14.28×	14.73×	12.67×
P/B	1.59×	0.92×	0.8×	0.95×	0.91×	0.71×	0.91×	0.91×
P/S	3.29×	1.9×	1.78×	2.32×	2.69×	2.06×	2.52×	2.45×
EV / EBITDA	21.79×	15.27×	10.25×	7.8×	7.08×	4.51×	23.05×	23.84×
Gross margin	70.6%	64.6%	75.4%	92.4%	90.3%	79.6%	76.6%	77.1%
Operating margin	19.8%	16.1%	24.1%	35.1%	32.8%	15.7%	18.9%	21.2%
Net margin	16.9%	13.7%	20.0%	29.0%	27.4%	14.4%	17.1%	19.3%
Current ratio	0.12×	0.14×	0.34×	0.36×	0.35×	0.37×	0.37×	0.43×
Debt / equity	0.62×	0.54×	0.57×	0.47×	0.47×	0.73×	1.31×	1.74×
Interest coverage	0.66×	0.48×	1.01×	5.05×	3.15×	0.86×	0.81×	0.98×
Dividend yield	2.2%	4.2%	5.1%	4.6%	4.4%	5.5%	4.3%	4.6%
Payout ratio	42.8%	58.7%	45.2%	36.3%	42.9%	78.3%	63.6%	58.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.2%	6.6%	9.0%	11.9%	9.2%	5.0%	6.2%	7.2%
Return on invested capital	4.5%	4.1%	5.4%	8.1%	6.3%	2.9%	2.7%	2.6%
Return on assets	0.9%	0.7%	0.9%	1.1%	1.0%	0.6%	0.7%	0.8%
Free cash flow yield	6.3%	9.0%	12.5%	13.4%	12.4%	13.1%	11.4%	11.1%
Earnings yield	5.1%	7.2%	11.2%	12.5%	10.2%	7.0%	6.8%	7.9%
Enterprise value	$485.5M	$282.2M	$244M	$225.5M	$186.1M	$67.9M	$407.7M	$444.4M
Net debt / EBITDA	5.23×	4.79×	3.46×	1.66×	-0.23×	-5.84×	12.18×	14.32×
Cash conversion cycle (days)	0	0	141	-643	-504	-222	-226	-273