Investar Holding (ISTR) has wrapped up FY 2025 with fourth quarter revenue of US$23.5 million and EPS of US$0.55, set against trailing twelve month revenue of US$93.6 million and EPS of US$2.22 that point to a solidly profitable year. The company has seen revenue move from US$86.3 million and EPS of US$2.06 on a trailing basis at the end of Q4 2024 to US$93.6 million and EPS of US$2.22 by Q4 2025, with net profit margin over the last year at 24.5% compared to 23.5% previously. With earnings quality flagged as high, forecasts in the dataset calling for faster growth, and margins edging higher, this set of results gives investors plenty to weigh up around how durable profitability could be.

See our full analysis for Investar Holding.

With the headline numbers on the table, the next step is to see how they line up against the widely held narratives around Investar, highlighting where the story is reinforced and where the latest figures raise fresh questions.

13.1% Earnings Growth Supports Profit Story

• Over the last 12 months, earnings grew 13.1% with net profit of US$22.9 million on revenue of US$93.6 million, and a 24.5% margin compared with 23.5% a year earlier.
• Bullish views that see ISTR as a steadily compounding bank find support in this margin and earnings profile. The step up from 6.7% 5-year earnings growth to 13.1% most recently also means optimistic investors need to watch whether this higher pace stays in place or settles back toward the longer term trend.
  • Supporters can point to the consistent trailing revenue base, from US$86.3 million to US$93.6 million, as matching the 13.1% earnings lift and helping the argument that profits are not just a short term spike.
  • At the same time, the 24.5% margin versus 23.5% previously shows some efficiency improvement, which fits the bullish angle but also sets a higher bar if conditions change.

To see how this earnings trajectory fits into a fuller long term story, including risks and valuation, check out the balanced narrative many investors are watching today. 📊 Read the full Investar Holding Consensus Narrative.

Loan Book Quality And Profitability Signals

• Across FY 2025, non performing loans stayed within single digit millions, at US$7.7 million in Q3 2025 and US$7.5 million in Q2 2025 on a loan book of around US$2.1b to US$2.2b, while net interest margin ranged from 2.87% in Q1 2025 to 3.16% in Q3 2025.
• What stands out for a bullish take is that the bank combined this level of non performing loans with Q3 2025 net income of US$5.7 million and Q4 2025 net income of US$5.4 million. Critics can still question how much earnings depend on holding that 3.16% peak net interest margin.
  • Supportive investors may highlight that non performing loans of US$8.8 million in Q4 2024 and US$7.7 million in Q3 2025 sit against more than US$2.1b of loans, which helps the idea that credit issues have been manageable while profits remained solid.
  • On the other side, the shift in quarterly net interest margin from 2.67% in Q3 2024 to 3.16% in Q3 2025 gives bears room to argue that any pressure on spreads could flow quickly into quarterly net income, given EPS moved between US$0.46 and US$0.64 across FY 2025.

Premium P/E And DCF Gap Stand Out

• At a share price of US$27.95, ISTR trades on a trailing P/E of 16.8x versus a peer average of 10.9x and US banks at 12.1x, while the DCF fair value in the data is US$52.80, around 47% above the current price.
• This mix heavily supports a bullish narrative that sees upside if earnings keep pace with forecasts for 34.6% annual growth. It also gives bears a clear talking point around paying a premium multiple at 16.8x compared with the sector while shareholders have already faced substantial dilution over the past year.
  • Bulls can argue that if revenue grows at the 24.9% rate in the dataset and margins stay near 24.5%, the gap between US$27.95 and the US$52.80 DCF fair value looks like meaningful potential, especially with a 1.57% dividend yield cited in the analysis.
  • Bears respond that issuing new shares to the point where dilution is flagged as a major risk, combined with trading above peer and industry P/E levels, means investors are already paying up based on modeled growth rather than current US$2.22 of trailing EPS alone.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Investar Holding's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

For all the solid profit metrics, some investors may still be uneasy about the premium 16.8x P/E, dilution concerns, and reliance on modeled growth assumptions.

If paying up for that kind of valuation makes you hesitant, you can quickly compare alternatives using these 865 undervalued stocks based on cash flows to focus on companies where pricing looks more restrained against fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.