German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 3.1%
• Average Volume (3M): 101.19K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.62
• Revenue Growth: 16.91%
• EPS Growth: -12.55%
• Country: US
• Employees: 1,020
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.30
• Shares Outstanding: 37,480,694
• 10 Day Avg. Volume: 113,785
• 30 Day Avg. Volume: 101,193
• PEG Ratio: 1.03
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.47
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 10.04
• Enterprise Value/Ebitda: 3.58
• 1Y Price Target: $44.75
• Price Target Upside: 19.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $41.00 ▲(9.71%Upside)

The overall score of 68 reflects strong financial stability and reasonable valuation, tempered by operational challenges and bearish technical indicators. The company's solid balance sheet and strategic initiatives are positives, but liquidity constraints and negative price trends present significant risks.

German American Bancorp Business Overview & Revenue Model

Company Description

German American Bancorp, Inc. operates as a bank holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. As of December 31, 2021, the company operated 77 banking offices in 19 contiguous southern Indiana counties; and 14 counties in Kentucky. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

How the Company Makes Money

German American Bancorp generates revenue through a variety of financial services. The primary revenue streams include interest income from loans offered to individuals and businesses, including commercial, residential, and consumer loans. Additionally, the company earns income from its investment securities portfolio. Non-interest income is another significant revenue source, generated through fees for services such as wealth management, deposit account services, and insurance products. The bank also benefits from partnerships with financial service providers to enhance its offerings and drive additional revenue. Overall, the company's diversified approach in both interest and non-interest income streams underpins its financial stability and growth.

German American Bancorp Financial Statement Overview

Summary

German American Bancorp shows strong revenue growth and a solid balance sheet with zero debt and increasing equity. However, the company faces significant challenges with its decreasing EBIT margin and cash flow metrics, indicating potential operational and liquidity issues.

Income Statement

The company has demonstrated consistent revenue growth over time, with a notable increase from $250.7M in 2023 to $291M in 2024. However, the net profit margin decreased slightly from 34.3% in 2023 to 28.8% in 2024, indicating pressure on profitability. The EBIT margin dropped significantly from 43.6% in 2023 to 1.9% in 2024, suggesting operational challenges.

Balance Sheet

The balance sheet is strong with no total debt by 2024, indicating a low leverage profile. Equity has grown from $663.6M in 2023 to $715.1M in 2024, reflecting solid shareholder equity growth. The equity ratio improved to 11.4% in 2024, from 10.8% in 2023, indicating a stable financial structure.

Cash Flow

There is a significant decrease in operating cash flow from $107.2M in 2023 to $2.0M in 2024, affecting the cash flow position. Free cash flow also decreased, suggesting challenges in maintaining cash reserves. The drop in cash flow metrics indicates potential liquidity issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
315.38M	250.69M	259.72M	229.84M	209.72M
	Gross Profit
212.15M	248.14M	236.28M	226.79M	193.49M
	EBIT
5.42M	109.32M	136.45M	102.78M	75.04M
	EBITDA
113.38M	113.06M	109.29M	111.56M	84.47M
	Net Income Common Stockholders
83.81M	85.89M	81.83M	84.14M	62.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	115.33M	119.58M	397.63M	346.99M
	Total Assets
6.30B	6.15B	6.16B	5.61B	4.98B
	Total Debt
153.27M	127.97M	228.81M	152.18M	194.53M
	Net Debt
83.52M	48.66M	151.63M	105.01M	136.56M
	Total Liabilities
5.58B	5.49B	5.60B	4.94B	4.35B
	Stockholders Equity
715.07M	663.56M	558.39M	668.46M	624.71M
Cash Flow		Free Cash Flow
90.72M	101.49M	102.18M	96.16M	85.35M
	Operating Cash Flow
95.70M	107.23M	110.04M	100.84M	92.42M
	Investing Cash Flow
-82.40M	27.25M	-24.18M	-640.30M	-346.08M
	Financing Cash Flow
60.10M	-136.54M	-363.67M	590.60M	495.52M

German American Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GABC, the sentiment is Negative. The current price of 37.37 is below the 20-day moving average (MA) of 38.40, below the 50-day MA of 37.40, and below the 200-day MA of 39.33, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GABC.

German American Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEL	76 Outperform	$1.38B	12.38	7.40%	2.08%	-0.58%	-3.02%
CUBI	74 Outperform	$1.64B	12.65	8.14%	―	-5.61%	-44.11%
SRCE	74 Outperform	$1.47B	10.38	12.84%	2.55%	9.30%	15.19%
STBA	70 Outperform	$1.43B	10.52	9.84%	3.73%	1.26%	―
NBHC	70 Outperform	$1.41B	12.46	8.68%	3.33%	1.63%	-16.82%
GABC	68 Neutral	$1.44B	15.03	8.85%	3.10%	16.91%	-12.55%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%

German American Bancorp Corporate Events

German American Bancorp Launches 2025 Management Incentive Plan

On March 19, 2025, German American Bancorp implemented balanced scorecards under its 2025 Management Incentive Plan for its executive officers. These scorecards are designed to align executive compensation with corporate and individual performance goals, offering both short-term and long-term incentive awards based on achieving specific financial and operational targets. The plan aims to motivate executives by tying their compensation to the company’s performance, with potential awards contingent on meeting or exceeding set benchmarks. This initiative reflects the company’s strategy to drive growth and maintain competitive positioning in the banking sector.