German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 2.9%
• Average Volume (3M): 116.13K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.77
• 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: 37,492,924
• 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: 1.06
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 10.99
• 1Y Price Target: $44.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $42.00 ▲(5.16% Upside)

German American Bancorp's overall stock score is driven by strong financial performance and reasonable valuation metrics. The company's robust revenue growth and efficient cash generation are significant strengths. However, technical indicators suggest caution due to bearish trends, and the slight decline in return on equity could be a concern if it persists. The stock is fairly valued with an attractive dividend yield, making it a balanced investment opportunity.

Positive Factors

Revenue Growth

The robust revenue growth indicates successful business expansion and a strong market position, enhancing long-term financial stability.

Balance Sheet Health

A solid balance sheet with low leverage provides financial flexibility and reduces risk, supporting sustainable growth and resilience.

Strategic Acquisition

Successful integration of acquisitions can enhance market reach and operational efficiency, contributing to long-term growth potential.

Negative Factors

Profitability Pressure

Decreasing profit margins suggest rising costs or competitive pressures, which could impact long-term profitability if not addressed.

Cash Conversion Inefficiencies

Inefficiencies in converting income into cash could hinder liquidity and operational flexibility, affecting future investments and growth.

Decreased Return on Equity

A declining return on equity indicates potential inefficiencies in generating profits from shareholders' equity, impacting investor confidence.

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: 39.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 39.94 is above the 20-day moving average (MA) of 39.02, above the 50-day MA of 38.96, and above the 200-day MA of 38.43, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 79.44 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	79 Outperform	$1.43B	10.74	9.35%	3.49%	-1.48%	-1.58%
TCBK	79 Outperform	$1.45B	12.52	9.20%	2.76%	0.93%	5.65%
NBHC	71 Outperform	$1.36B	11.35	9.06%	3.19%	-2.46%	-1.98%
STEL	71 Outperform	$1.51B	14.81	6.38%	1.86%	-4.40%	-8.80%
SRCE	70 Outperform	$1.54B	10.34	12.65%	2.41%	5.09%	15.78%
GABC	68 Neutral	$1.47B	13.68	10.75%	2.90%	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 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 Achieves Record Q3 Earnings

German American Bancorp, Inc. is a financial holding company based in Jasper, Indiana, operating primarily in the banking sector with a strong presence in Indiana, Kentucky, and Ohio. The company offers a range of financial services through its subsidiary, German American Bank.

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.

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.

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.