German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: 2.89%
• Average Volume (3M): 116.13K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.71
• Revenue Growth: 30.45%
• EPS Growth: 3.13%
• Country: US
• Employees: 1,020
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.95
• Shares Outstanding: 37,491,800
• 10 Day Avg. Volume: 104,961
• 30 Day Avg. Volume: 116,126
• PEG Ratio: -5.18
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 3.78
• P/FCF Ratio: 13.15
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 11.12
• 1Y Price Target: $47.33
• Price Target Upside: 11.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.77
• Revenue Forecast (FY): $394.12M

• Rating: 66 Neutral
• Price Target: $46.00 ▲(7.96% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is held back mainly by the sharp deterioration in TTM operating/free cash flow despite solid revenue/profitability and a conservative balance sheet. Offsetting factors include a reasonable valuation with a solid dividend yield and positive corporate updates (record earnings and dividend hike), while technicals are generally neutral with mild longer-term support above key moving averages.

Positive Factors

Conservative balance sheet

A conservative capital and leverage profile provides resilience to credit cycles and funding shocks. Low debt relative to equity preserves regulatory buffers, maintains lending flexibility, and supports measured growth or opportunistic acquisitions without materially increasing financial risk.

Strong NIM & efficiency

A robust NIM and sub-50% efficiency ratio indicate the bank earns attractive core spreads while controlling operating costs. That structural profitability supports durable core earnings, helping sustain capital generation and shareholder distributions across typical regional bank cycles.

Consistent dividend & ROE track record

A long track record of double-digit ROE and consecutive dividend increases signals repeatable franchise economics and disciplined capital allocation. This consistency underpins investor confidence and reflects sustainable earnings power and management commitment to returning capital over time.

Negative Factors

Weak cash conversion

The sharp decline in operating cash flow and a negative free cash flow position mark a meaningful deterioration in cash conversion. If persistent, this reduces financial flexibility for lending, buybacks, or dividends and raises reliance on noncash accounting or external funding.

Declining ROE/efficiency vs prior years

ROE materially below 2022–2024 levels suggests reduced efficiency in converting equity into profits. Sustained lower ROE can limit internal capital accrual, force slower growth or capital issuance, and signal pressures on core underwriting or expense leverage.

Margins normalizing below recent levels

Net margins have normalized from peak pandemic-era levels and sit below the 2023–2024 range, indicating structural pressure from spread compression or funding costs. Continued margin erosion would weaken earnings power and constrain the ability to rebuild cash flow buffers.

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 primarily through interest income from loans, such as commercial loans, residential mortgages, and consumer loans. Additionally, the company earns non-interest income from various sources, including service charges on deposit accounts, fees from wealth management services, and mortgage origination fees. Interest spreads, which is the difference between the interest earned on loans and the interest paid on deposits, play a crucial role in their revenue model. The bank also benefits from strategic partnerships with local businesses and organizations, enhancing their ability to attract and retain customers. Overall, GABC's diversified financial services and focus on community banking contribute significantly to its earnings.

German American Bancorp Financial Statement Overview

Summary

Income statement is solid (revenue +8.0% TTM and healthy profitability), and the balance sheet is conservatively levered. However, cash flow weakened sharply (operating cash flow fell to about $2.0M and free cash flow turned negative), making cash conversion the primary financial risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+8.0%), and profitability remains healthy with solid operating and net margins. However, margins have trended down from the unusually high levels seen in 2021–2022, and net margin in TTM is below the 2023–2024 range—suggesting profitability is normalizing even as revenue rebounds.

Balance Sheet

Leverage is conservative in TTM with very low debt relative to equity, which supports balance-sheet resilience. That said, return on equity is meaningfully lower in TTM versus prior years (well below 2022–2024 levels), indicating weaker efficiency in generating profits from the equity base despite the strong capital position.

Cash Flow

Cash generation deteriorated sharply in TTM (operating cash flow dropped to ~$2.0M and free cash flow turned negative), a major step down from consistently strong positive free cash flow in 2020–2024. While free cash flow relative to net income appears elevated, the absolute decline and negative free cash flow in TTM raise concerns about cash conversion volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	487.40M	315.38M	316.92M	278.06M	229.84M	228.84M
Gross Profit	342.02M	212.15M	248.14M	253.37M	226.79M	192.17M
EBITDA	153.78M	113.38M	113.06M	109.29M	111.56M	84.47M
Net Income	112.64M	83.81M	85.89M	81.83M	84.14M	62.21M
Balance Sheet
Total Assets	15.62B	6.30B	6.15B	6.16B	5.61B	4.98B
Cash, Cash Equivalents and Short-Term Investments	118.88M	1.12B	1.68B	1.84B	1.94B	1.28B
Total Debt	182.68M	210.13M	193.94M	203.81M	152.18M	194.53M
Total Liabilities	7.23B	5.58B	5.49B	5.60B	4.94B	4.35B
Stockholders Equity	8.39B	715.07M	663.56M	558.39M	668.46M	624.71M
Cash Flow
Free Cash Flow	-4.89M	90.72M	101.49M	102.18M	96.16M	85.35M
Operating Cash Flow	2.02M	95.76M	107.23M	110.04M	100.84M	92.42M
Investing Cash Flow	-60.27M	-82.40M	27.25M	-24.18M	-640.30M	-346.08M
Financing Cash Flow	-169.46M	60.10M	-136.54M	-363.67M	590.60M	495.52M

German American Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 42.61 is below the 20-day moving average (MA) of 43.00, above the 50-day MA of 41.23, and above the 200-day MA of 39.44, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 31.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GABC.

German American Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBA	81 Outperform	$1.65B	12.37	9.35%	3.38%	-1.48%	-1.58%
TCBK	81 Outperform	$1.60B	13.30	9.20%	2.83%	0.93%	5.65%
STEL	74 Outperform	$1.92B	19.10	6.38%	1.82%	-4.40%	-8.80%
SRCE	72 Outperform	$1.66B	10.55	13.25%	2.37%	5.09%	15.78%
NBHC	68 Neutral	$1.81B	14.08	9.06%	3.07%	-2.46%	-1.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GABC	66 Neutral	$1.58B	13.76	10.75%	2.89%	30.45%	3.13%

German American Bancorp Corporate Events

German American Bancorp Showcases Growth at Investor Conference

German American Bancorp, Inc. said President and CFO Bradley M. Rust and Chief Banking Officer Michael F. Beckwith will meet with investors at the KBW Winter Financial Services Conference on Feb. 12, 2026. The executives plan to present an overview of fourth-quarter 2025 performance and the bank’s strategic positioning to institutional investors at the event.

Materials prepared for the conference highlight sizable asset and loan growth through Dec. 31, 2025, with total assets reaching $8.4 billion and total loans $5.9 billion, supported by a largely core, low-cost deposit base. The presentation underscores sustained profitability, strong capital levels, improving efficiency and a long history of dividend and earnings growth, signaling management’s intent to showcase the bank as a stable, high-performing regional franchise to current and prospective shareholders.

The most recent analyst rating on (GABC) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on German American Bancorp stock, see the GABC Stock Forecast page.

German American Bancorp Reports Record Earnings, Hikes Dividend

On January 26, 2026, German American Bancorp reported record fourth-quarter 2025 earnings of $35.7 million, or $0.95 per share, and strong full-year 2025 net income of $112.6 million, or $3.06 per share, with even higher results on an adjusted basis. The bank posted a robust net interest margin of 4.13%, a low efficiency ratio around 49%, healthy credit metrics with minimal net charge-offs, and a tangible common equity ratio of 9.44%, while achieving 7% annualized linked-quarter loan growth and marking its 21st consecutive year of double-digit return on average shareholder equity. Total assets rose to $8.389 billion at year-end 2025, driven largely by the February 1, 2025 acquisition of Heartland BancCorp and continued organic loan growth, and the Heartland integration was described as seamless. Reflecting its strong capital position and consistent profitability, the board declared a 7% increase in the regular quarterly cash dividend to $0.31 per share, payable February 20, 2026 to shareholders of record on February 10, 2026, marking the 14th straight year of dividend increases and underscoring management’s confidence in the bank’s earnings power and regional growth strategy.

The most recent analyst rating on (GABC) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on German American Bancorp stock, see the GABC Stock Forecast page.