German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: 2.84%
• Average Volume (3M): 123.68K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.72
• Revenue Growth: 22.42%
• EPS Growth: -5.59%
• Country: US
• Employees: 1,020
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.84
• Shares Outstanding: 37,492,924
• 10 Day Avg. Volume: 139,143
• 30 Day Avg. Volume: 123,678
• 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: 1.03
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 5.51
• Enterprise Value/Ebitda: 12.91
• 1Y Price Target: $46.75
• Price Target Upside: 16.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: $48.00 ▲(19.97% Upside)

German American Bancorp's strong financial performance, positive technical indicators, and strategic corporate events contribute to a solid stock score. While the valuation is reasonable, the company's focus on enhancing profitability and cash flow efficiency will be crucial for sustaining growth. The absence of earnings call data does not detract from the overall positive outlook.

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 the interest income earned on loans and investment securities. The bank offers various types of loans, including residential mortgages, commercial loans, and consumer loans, which yield interest payments from borrowers. Additionally, the bank earns non-interest income from a variety of sources, such as fees from account services, ATM transactions, and wealth management services. Key revenue streams include interest from loans and investments, service charges on deposit accounts, and fees for financial advisory services. The bank's focus on community banking and personalized service helps to build long-term customer relationships, further enhancing its revenue potential. Furthermore, strategic partnerships with local businesses and organizations contribute to its growth and earnings by expanding its customer base and service offerings.

German American Bancorp Financial Statement Overview

Summary

German American Bancorp exhibits strong financial performance with consistent revenue growth and efficient cost management. The income statement shows robust margins, while the balance sheet reflects moderate leverage and improved equity ratio. Strong cash flow generation further supports financial stability, although there is room for improved return on equity.

Income Statement

The income statement shows a strong performance with consistent revenue growth, evidenced by a 8.55% increase in TTM revenue compared to the previous year. The gross profit margin stands at 63.8% for TTM, indicating efficient cost management. Net profit margin has slightly decreased to 22.0%, but remains robust. Both EBIT and EBITDA margins are healthy, at 27.5% and 30.7% respectively, highlighting operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial structure with a debt-to-equity ratio of 0.21, showcasing moderate leverage. The equity ratio has improved to 12.4%, suggesting increasing shareholder equity relative to total assets. However, the return on equity decreased to 7.2%, indicating potential room for improved profitability from equity.

Cash Flow

Cash flow analysis reveals strong operational cash flows with an operating cash flow to net income ratio of 1.46, indicating effective conversion of income into cash. Free cash flow has grown by 15.6% over the past year, signaling robust cash generation capabilities. The free cash flow to net income ratio is 1.39, further supporting the company's strong cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.35M	315.38M	316.92M	278.06M	229.84M	228.84M
Gross Profit	281.09M	212.15M	248.14M	253.37M	226.79M	193.49M
EBITDA	119.99M	113.38M	113.06M	109.29M	111.56M	84.47M
Net Income	86.14M	83.81M	85.89M	81.83M	84.14M	62.21M
Balance Sheet
Total Assets	8.28B	6.30B	6.15B	6.16B	5.61B	4.98B
Cash, Cash Equivalents and Short-Term Investments	200.65M	1.12B	1.68B	1.84B	1.94B	1.28B
Total Debt	202.03M	210.13M	193.94M	203.81M	152.18M	194.53M
Total Liabilities	7.21B	5.58B	5.49B	5.60B	4.94B	4.35B
Stockholders Equity	1.07B	715.07M	663.56M	558.39M	668.46M	624.71M
Cash Flow
Free Cash Flow	113.90M	90.72M	101.49M	102.18M	96.16M	85.35M
Operating Cash Flow	118.05M	95.70M	107.23M	110.04M	100.84M	92.42M
Investing Cash Flow	-126.06M	-82.40M	27.25M	-24.18M	-640.30M	-346.08M
Financing Cash Flow	-121.15M	60.10M	-136.54M	-363.67M	590.60M	495.52M

German American Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GABC, the sentiment is Neutral. The current price of 40.01 is below the 20-day moving average (MA) of 40.96, below the 50-day MA of 40.18, and above the 200-day MA of 38.93, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 6.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GABC.

German American Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GABC	79 Outperform	$1.51B	15.22	9.80%	2.84%	22.42%	-5.59%
STEL	77 Outperform	1.56B	14.29	6.87%	1.85%	-2.85%	-0.33%
SRCE	75 Outperform	1.54B	10.83	11.78%	2.37%	6.43%	11.69%
STBA	74 Outperform	1.48B	11.34	9.06%	3.55%	-0.57%	-3.92%
CUBI	74 Outperform	2.23B	16.53	7.92%	―	-7.45%	-45.67%
NBHC	74 Outperform	1.47B	12.56	8.83%	3.00%	0.60%	-6.31%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

German American Bancorp Corporate Events

German American Bancorp Engages at Raymond James Conference

On September 3, 2025, German American Bancorp‘s CEO D. Neil Dauby and CFO Bradley M. Rust participated in the Raymond James U.S. Bank Conference, engaging with investors to discuss the company’s strategic positioning and financial performance. The company has a history of superior financial performance, consistently ranking among the top publicly traded banks and achieving double-digit returns on equity for 20 consecutive fiscal years, which highlights its strong industry positioning and potential positive implications for stakeholders.

German American Bancorp Reports Strong Q2 2025 Earnings

German American Bancorp, Inc. reported strong second quarter 2025 earnings, with net income reaching $31.4 million, marking a significant increase from the first quarter. This performance was driven by core net interest margin expansion, organic loan growth, and improved efficiencies following the merger with Heartland BancCorp. The company also declared a cash dividend of $0.29 per share, payable on August 20, 2025. The acquisition of Heartland contributed to the company’s asset growth, while the integration of Heartland’s operations and reduction of related expenses are expected to enhance future profitability.

German American Bancorp Appoints Andrew Seger to Board

On June 30, 2025, German American Bancorp announced the appointment of Andrew M. Seger to its Board of Directors, effective July 1, 2025. Seger, who is the CFO and Senior VP of Sales at Wabash Valley Produce, brings extensive experience in agriculture, business, finance, and customer relations. His appointment increases the board size to 14 members, and he will serve on the Audit Committee. The company anticipates that Seger’s expertise will significantly contribute to its mission of supporting financial growth for individuals, families, and businesses.

German American Bancorp Engages at Raymond James Event

On June 24, 2025, German American Bancorp‘s executives, D. Neil Dauby and Bradley M. Rust, participated in the Raymond James Small-Cap Bank Day, engaging with investors to discuss the company’s strategies and performance. This participation underscores the company’s commitment to enhancing investor relations and maintaining a strong market presence, potentially impacting its operational strategies and stakeholder engagement positively.