German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: 2.81%
• Average Volume (3M): 116.13K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.70
• Revenue Growth: 30.45%
• EPS Growth: 3.13%
• Country: US
• Employees: 1,020
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.94
• 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: 1.00
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 10.99
• 1Y Price Target: $44.00
• Price Target Upside: 6.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $44.00 ▲(6.43% Upside)

German American Bancorp's strong financial performance and recent record earnings are significant strengths, supporting a positive outlook. The technical indicators suggest stable price trends, though potential overbought conditions warrant caution. The valuation is fair, with an attractive dividend yield. Recent corporate engagements and earnings highlight strategic growth and transparency, enhancing investor confidence.

Positive Factors

Revenue Growth

Strong revenue growth indicates positive business momentum and effective market strategies, supporting long-term financial health.

Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and debt reduction, supporting sustainable growth.

Net Interest Margin Expansion

Expanding net interest margins improve profitability, reflecting effective interest rate management and a strong lending strategy.

Negative Factors

Declining Return on Equity

Declining return on equity suggests challenges in efficiently generating profits from shareholders' equity, potentially impacting investor returns.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Note Redemption Impact

Redeeming notes can impact liquidity and financial obligations, potentially affecting cash reserves and financial strategy execution.

German American Bancorp Business Overview & Revenue Model

Company Description

German American Bancorp (GABC) is a financial holding company based in the United States that operates primarily through its banking subsidiary, German American Bank. The company offers a wide range of financial services, including commercial and consumer banking, mortgage lending, and investment services. With a strong presence in the Midwest, particularly in Indiana and Kentucky, GABC focuses on providing personalized banking solutions to individuals, businesses, and communities, emphasizing customer service and local engagement.

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

German American Bancorp demonstrates strong revenue growth and a stable balance sheet with low leverage. However, there are signs of pressure on profitability margins and some inefficiencies in cash conversion. The company is well-positioned in terms of financial stability, but should focus on enhancing profitability and cash flow efficiency to sustain growth.

Income Statement

German American Bancorp shows strong revenue growth with a 20.74% increase in TTM, indicating robust business expansion. The gross profit margin remains healthy at 68.00%, although slightly lower than previous years. Net profit margin has decreased to 20.84% from 26.57% in 2024, suggesting some pressure on profitability. EBIT and EBITDA margins have also declined, reflecting increased operational costs or competitive pressures.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.19, indicating prudent financial leverage. Return on equity is at 9.64%, which is a decrease from previous years, suggesting a need for improved profitability. The equity ratio stands at 12.92%, reflecting a stable capital structure.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 8.71% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.02, suggesting potential inefficiencies in converting income into cash. However, the free cash flow to net income ratio is strong at 96.49%, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	451.42M	315.38M	316.92M	278.06M	229.84M	228.84M
Gross Profit	312.77M	212.15M	248.14M	253.37M	226.79M	192.17M
EBITDA	140.97M	113.38M	113.06M	109.29M	111.56M	84.47M
Net Income	100.16M	83.81M	85.89M	81.83M	84.14M	62.21M
Balance Sheet
Total Assets	8.40B	6.30B	6.15B	6.16B	5.61B	4.98B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.12B	1.68B	1.84B	1.94B	1.28B
Total Debt	211.02M	210.13M	193.94M	203.81M	152.18M	194.53M
Total Liabilities	7.28B	5.58B	5.49B	5.60B	4.94B	4.35B
Stockholders Equity	1.12B	715.07M	663.56M	558.39M	668.46M	624.71M
Cash Flow
Free Cash Flow	141.02M	90.72M	101.49M	102.18M	96.16M	85.35M
Operating Cash Flow	145.34M	95.76M	107.23M	110.04M	100.84M	92.42M
Investing Cash Flow	-35.84M	-82.40M	27.25M	-24.18M	-640.30M	-346.08M
Financing Cash Flow	-49.41M	60.10M	-136.54M	-363.67M	590.60M	495.52M

German American Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 41.34 is above the 20-day moving average (MA) of 39.96, above the 50-day MA of 39.20, and above the 200-day MA of 38.53, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 63.54 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, 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
SRCE	82 Outperform	$1.62B	10.85	12.65%	2.30%	5.09%	15.78%
STBA	80 Outperform	$1.61B	12.18	9.35%	3.26%	-1.48%	-1.58%
NBHC	79 Outperform	$1.51B	12.64	9.06%	2.98%	-2.46%	-1.98%
TCBK	78 Outperform	$1.62B	14.01	9.20%	2.78%	0.93%	5.65%
STEL	76 Outperform	$1.65B	16.12	6.38%	1.77%	-4.40%	-8.80%
GABC	73 Outperform	$1.55B	14.43	10.75%	2.81%	30.45%	3.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

German American Bancorp Corporate Events

German American Bancorp Announces Note Redemption Plan

On November 18, 2025, German American Bancorp, Inc. announced its decision to redeem its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2029, totaling $40 million in principal amount, on December 30, 2025. This redemption will be executed at 100% of the principal amount plus accrued interest, impacting the company’s financial obligations and potentially influencing stakeholder perceptions regarding its financial strategy and liquidity management.

German American Bancorp Engages at Hovde Group Conference

On November 6, 2025, German American Bancorp‘s executives participated in the Hovde Group Financial Services Conference, engaging with investors to discuss the company’s strategic positioning and financial performance. The company has a history of strong financial performance, consistently ranking among the top publicly traded banks and maintaining a robust dividend yield. This engagement reflects its commitment to transparency and growth, potentially enhancing investor confidence and supporting its market position.

German American Bancorp Reports Record Q3 2025 Earnings

German American Bancorp, Inc. reported record earnings for the third quarter of 2025, with net income reaching $35.1 million, marking a 12% increase from the previous quarter and a 32% increase from the same period in 2024. The company’s strong performance was driven by net interest margin expansion, solid deposit and loan growth, and the successful integration of Heartland Bank, which contributed significantly to the increase in total assets and loans.