German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: 2.89%
• Average Volume (3M): 116.13K
• Price to Earnings (P/E): 14.4
• 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: 1.07
• Enterprise Value/Revenue: 3.93
• Enterprise Value/Gross Profit: 5.67
• Enterprise Value/Ebitda: 12.58
• 1Y Price Target: $46.50
• Price Target Upside: 4.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $45.00 ▲(1.53% Upside)

The score is driven primarily by solid financial performance (revenue growth, strong margins, and strong cash generation) and supportive corporate updates (record earnings and a dividend hike). Technicals are constructive with the price above key moving averages and a positive MACD, while valuation appears reasonable with a mid-teens P/E and ~2.9% yield.

Positive Factors

Strong cash generation

Sustained FCF growth and near-1x conversion indicate durable internal funding for dividends, capital needs, and M&A. Reliable cash generation strengthens liquidity and reduces reliance on external funding, supporting strategic initiatives over the medium term.

High margin and operating efficiency

A 4.13% NIM paired with a ~49% efficiency ratio signals structurally profitable core banking operations. High margins and efficient cost management provide resilience to cyclical headwinds and create lasting capacity to fund dividends and reinvest in growth initiatives.

Conservative leverage and capital position

Low leverage and a stable equity base enhance loss-absorption capacity and regulatory resilience. This conservative balance sheet provides flexibility to support loan growth, integrate acquisitions, and maintain dividend policy without materially increasing funding stress.

Negative Factors

Low/declining return on equity

A declining and modest ROE suggests the bank is generating limited returns on shareholder capital. Persistently low ROE can constrain long-term shareholder value creation and indicate excess capital, compressed margins, or suboptimal asset deployment absent strategic change.

Declining gross profit margin

A falling gross margin points to rising funding or credit costs, price pressure, or less favorable loan mix. If this trend continues, it can erode operating leverage and compress net income despite efficiency gains, challenging sustainable profit growth.

Concentration in interest income

Heavy reliance on interest income and spreads makes earnings structurally sensitive to long-run rate cycles and deposit/loan repricing dynamics. Compression of spreads or deposit cost pressure could materially reduce core profitability over the medium term.

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

Solid overall fundamentals: strong revenue growth (9.21% TTM) and robust profitability (24.95% net margin). Cash generation is a key strength with free cash flow growth of 23.81% TTM and near-1x FCF-to-net-income conversion. Balance sheet leverage is conservative (0.19 debt-to-equity), but return on equity is relatively low (3.57% TTM) and has declined.

Income Statement

German American Bancorp shows a strong revenue growth rate of 9.21% TTM, indicating positive momentum. The net profit margin of 24.95% TTM is robust, although slightly lower than the previous year. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the gross profit margin has decreased over time, which could indicate rising costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.19 TTM, indicating reduced leverage and a stronger equity position. Return on equity is moderate at 3.57% TTM, showing a decline from previous years, which may suggest challenges in generating returns on equity. The equity ratio is stable, reflecting a solid asset base.

Cash Flow

Free cash flow growth of 23.81% TTM is a positive indicator of the company's ability to generate cash. The free cash flow to net income ratio is nearly 1, suggesting efficient cash conversion. Operating cash flow to net income ratio is not available, but overall cash flow metrics indicate strong cash generation capabilities.

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: 44.32
• 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 44.32 is above the 20-day moving average (MA) of 41.26, above the 50-day MA of 40.56, and above the 200-day MA of 39.27, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 88.84 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
STBA	81 Outperform	$1.68B	12.60	9.35%	3.38%	-1.48%	-1.58%
TCBK	81 Outperform	$1.70B	14.11	9.20%	2.83%	0.93%	5.65%
SRCE	78 Outperform	$1.70B	10.77	12.65%	2.37%	5.09%	15.78%
NBHC	77 Outperform	$1.58B	14.69	9.06%	3.07%	-2.46%	-1.98%
GABC	75 Outperform	$1.66B	14.45	10.75%	2.89%	30.45%	3.13%
STEL	73 Outperform	$1.96B	19.47	6.38%	1.82%	-4.40%	-8.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

German American Bancorp Corporate Events

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.

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.

The most recent analyst rating on (GABC) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on German American Bancorp stock, see the GABC Stock Forecast page.

German American Bancorp 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.

The most recent analyst rating on (GABC) stock is a Buy with a $43.00 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 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.

The most recent analyst rating on (GABC) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on German American Bancorp stock, see the GABC Stock Forecast page.