IF Bancorp (IROQ) AI Stock Analysis

• Market Cap: $90.89M
• Dividend Yield: 1.48%
• Average Volume (3M): 7.75K
• Price to Earnings (P/E): 17.0
• Beta (1Y): -0.09
• Revenue Growth: 1.93%
• EPS Growth: 157.35%
• Country: US
• Employees: 109
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 3,351,526
• 10 Day Avg. Volume: 4,179
• 30 Day Avg. Volume: 7,755
• PEG Ratio: 0.13
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 12.24
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 6.42
• Enterprise Value/Ebitda: 28.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $29.00 ▲(8.70% Upside)

The score is primarily held back by weak cash flow (negative operating and free cash flow) despite strong revenue growth and a stable balance sheet. Technicals are supportive with an established uptrend and positive momentum signals. Valuation is reasonable but not notably cheap, and merger-related developments are mixed due to approvals offset by litigation risk.

Positive Factors

Strong revenue growth and high gross margin

Sustained ~20% revenue growth and an exceptionally high gross margin indicate durable demand and efficient core lending operations. Over 2-6 months this underpins franchise strength, pricing power on loan products, and room to invest in customer acquisition and service capabilities.

Improved leverage and stable balance sheet

A sub-1.0 debt-to-equity and a stable balance sheet provide regulatory and funding flexibility for a regional bank. This durable capital posture supports sustained lending capacity, resilience to credit stress, and optionality for targeted growth or bolt-on acquisitions over the medium term.

Regulatory approvals received for planned merger

Clearing regulatory hurdles materially advances a strategic merger that expands geographic footprint and deposit scale. If completed, the transaction should create lasting benefits via broader customer reach, cross-sell opportunities and potential cost synergies that strengthen long-term competitiveness.

Negative Factors

Negative operating and free cash flow

Persistently negative operating and free cash flow constrain reinvestment, dividend sustainability, and debt reduction. Over months this limits financial flexibility, may force reliance on external funding or asset sales, and reduces the firm's ability to absorb shocks or fund strategic initiatives.

Weak conversion to net income

A wide gap between gross and net margins suggests funding costs, provision expense, or noninterest expenses are eroding profitability. Over time this pressure can hinder ROE improvement, limit retained earnings for capital build, and reduce capacity to compete on pricing or invest in growth.

Merger-related litigation and supplemental proxy

Active litigation and supplemental proxy disclosures introduce execution risk that can delay closing, increase legal costs, and distract management. These issues can impair the timely realization of merger synergies and create lasting uncertainty around strategic benefits and integration planning.

IF Bancorp Business Overview & Revenue Model

Company Description

IF Bancorp, Inc. operates as the savings and loan holding company for Iroquois Federal Savings and Loan Association that provides a range of banking and financial services to individual and corporate clients. The company offers various deposit accounts, including savings accounts, certificates of deposit, money market accounts, commercial and personal checking accounts, individual retirement accounts, and health savings accounts. It also provides loans comprising one- to four-family residential mortgage loans; multi-family mortgage loans; commercial real estate loans, such as farm loans; home equity lines of credit; commercial business loans; and consumer loans primarily consisting of automobile loans, as well as construction loans and land development loans. In addition, the company sells property and casualty insurance, as well as offers annuities; mutual funds; individual and group retirement plans; life, disability, and health insurance; individual securities; managed accounts; and other financial services. Further, it invests in securities; and provides ATM, online banking and bill pay, mobile banking, ACH origination, remote deposit capture, and telephone banking services. As of August 31, 2021, it operated a network of seven full-service banking offices located in Watseka, Danville, Clifton, Hoopeston, Savoy, Bourbonnais, and Champaign, Illinois; and a loan production and wealth management office in Osage Beach, Missouri. IF Bancorp, Inc. was founded in 1883 and is headquartered in Watseka, Illinois.

How the Company Makes Money

IF Bancorp generates revenue primarily through interest income from loans and fees associated with various banking services. The key revenue streams include interest earned on mortgage loans, commercial loans, and consumer loans, which typically represent the largest portion of the company's income. Additionally, IF Bancorp earns non-interest income from service charges on deposit accounts, transaction fees, and other banking services. The company's profitability is influenced by its net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Effective cost management and a focus on maintaining a strong loan portfolio also contribute to its overall earnings. Any strategic partnerships, such as collaborations with local businesses or community organizations, can enhance customer acquisition and retention, further supporting revenue growth.

IF Bancorp Financial Statement Overview

Summary

Income statement strength (75) is driven by strong revenue growth (19.7%) and very high gross margin (101.4%), but profitability conversion is weaker with a low net margin (8.9%). Balance sheet is fairly stable (70) with improved leverage (debt-to-equity 0.89) but modest ROE (5.3%). Cash flow is the main drag (40) due to negative operating and free cash flow, raising sustainability and flexibility concerns.

Income Statement

IF Bancorp has shown a strong revenue growth rate of 19.7% in the latest year, indicating positive momentum. The gross profit margin is exceptionally high at 101.4%, suggesting efficient cost management. However, the net profit margin is relatively low at 8.9%, indicating potential challenges in translating revenue into net income. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.89, indicating a stable leverage position compared to the previous year. Return on equity is modest at 5.3%, suggesting moderate profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base.

Cash Flow

Cash flow metrics show significant challenges, with negative operating and free cash flows in the latest year. The free cash flow to net income ratio is 1.0, indicating that free cash flow is entirely consumed by net income, leaving little room for reinvestment or debt reduction. The operating cash flow to net income ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.37M	48.37M	45.37M	36.17M	30.29M	30.59M
Gross Profit	26.47M	26.47M	22.08M	26.32M	27.27M	25.56M
EBITDA	5.92M	6.54M	3.03M	6.92M	8.50M	8.06M
Net Income	4.30M	4.30M	1.79M	4.66M	5.78M	5.35M
Balance Sheet
Total Assets	887.66M	887.66M	887.75M	848.98M	857.56M	797.34M
Cash, Cash Equivalents and Short-Term Investments	4.97M	4.97M	200.30M	213.54M	298.22M	254.88M
Total Debt	72.92M	72.92M	76.02M	30.29M	24.24M	34.24M
Total Liabilities	805.82M	805.82M	813.83M	777.22M	785.90M	712.04M
Stockholders Equity	81.84M	81.84M	73.92M	71.75M	71.66M	85.30M
Cash Flow
Free Cash Flow	6.52M	6.52M	2.04M	516.00K	8.28M	6.59M
Operating Cash Flow	6.76M	6.76M	2.28M	2.77M	8.67M	6.87M
Investing Cash Flow	14.06M	14.06M	-39.75M	-57.12M	-68.80M	-36.04M
Financing Cash Flow	-10.30M	-10.30M	36.05M	-10.47M	73.21M	58.44M

IF Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.68
• 50DMA: Positive
• 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 IROQ, the sentiment is Positive. The current price of 26.68 is below the 20-day moving average (MA) of 27.02, above the 50-day MA of 26.68, and above the 200-day MA of 25.26, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 10.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IROQ.

IF Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LSBK	78 Outperform	$118.00M	15.78	6.28%	2.12%	2.27%	66.15%
AUBN	69 Neutral	$86.85M	11.98	8.22%	4.16%	24.17%	739.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IROQ	65 Neutral	$90.89M	16.97	6.20%	1.48%	1.93%	157.35%
PBHC	54 Neutral	$84.47M	-14.35	2.26%	2.86%	0.84%	―
SSBI	45 Neutral	$91.34M	13.54	-1.41%	―	-0.81%	-129.22%

IF Bancorp Corporate Events

IF Bancorp issues supplemental proxy amid merger litigation

On October 29, 2025, IF Bancorp, Inc. agreed to a multi-step merger with ServBanc Holdco, Inc., under which IF Bancorp will first merge into SBHI Holdings, Inc., then into ServBanc itself, followed by the merger of its banking subsidiary, Iroquois Federal Savings and Loan Association, into Servbank, National Association. After the definitive proxy statement for the transaction was filed on December 30, 2025 and mailed to shareholders, purported shareholders filed two lawsuits in New York in January 2026 and sent four demand letters alleging the proxy was false and misleading and that the company and its directors were negligent or liable for misrepresentation; IF Bancorp denies all allegations but, to prevent delays to the shareholder meeting and closing and to avoid litigation costs, it has issued supplemental proxy disclosures, including additional detail on valuation multiples, selected transactions, discount-rate assumptions, its financial advisor’s fee structure, and unaudited prospective financial information for 2025 and 2026 used in the board’s and financial advisor’s analyses.

The most recent analyst rating on (IROQ) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on IF Bancorp stock, see the IROQ Stock Forecast page.

IF Bancorp, ServBanc secure approvals for planned merger

On January 14, 2026, ServBanc Holdco, Inc. and IF Bancorp, Inc. announced that they had received all required regulatory approvals to proceed with their pending merger, including the merger of their subsidiary banks, Servbank, National Association and Iroquois Federal Savings and Loan Association. The parties said they expected to close the transaction in the first quarter of 2026, contingent on customary closing conditions, notably approval from IF Bancorp shareholders at a special meeting scheduled for February 3, 2026, underscoring that successful completion would advance their consolidation plans but still carries execution and integration risks for customers, employees and investors.

The most recent analyst rating on (IROQ) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on IF Bancorp stock, see the IROQ Stock Forecast page.

IF Bancorp Announces Merger with ServBanc Holdco

On October 29, 2025, ServBanc Holdco, Inc. and IF Bancorp, Inc. entered into a Merger Agreement, under which IF Bancorp will merge into a subsidiary of ServBanc, with subsequent mergers involving their respective banking subsidiaries. The transaction, valued at approximately $89.8 million, is expected to close in the first quarter of 2026, subject to regulatory and shareholder approvals. The merger aims to strategically expand Servbank’s franchise into central Illinois, offering compelling opportunities for stakeholders, including customers, employees, and shareholders. As a result of the merger announcement, IF Bancorp has indefinitely postponed its 2025 annual shareholder meeting.

The most recent analyst rating on (IROQ) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on IF Bancorp stock, see the IROQ Stock Forecast page.