Republic Bancorp (RBCAA) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 2.57%
• Average Volume (3M): 25.79K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.78
• Revenue Growth: 5.21%
• EPS Growth: 24.51%
• Country: US
• Employees: 981
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.17
• Shares Outstanding: 17,388,490
• 10 Day Avg. Volume: 28,488
• 30 Day Avg. Volume: 25,789
• PEG Ratio: 0.38
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 8.45
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 4.23
• Enterprise Value/Ebitda: 9.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.13
• Revenue Forecast (FY): $407.00M

• Rating: 69 Neutral
• Price Target: $75.00 ▲(1.58% Upside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is driven primarily by solid financial performance (strong growth and returns, with some cyclicality and cash-flow inconsistency) and supportive valuation (low P/E with a dividend). The main drag is weak technical momentum (below key moving averages with negative MACD), partially offset by positive recent corporate actions (dividend raise and a value-accretive divestiture).

Positive Factors

Revenue & EPS growth

Republic Bancorp exhibits multi-year revenue and EPS expansion that culminated in materially higher 2025 results. Durable top- and bottom-line growth supports continued scale benefits, underwriting capacity and reinvestment potential, reducing execution risk over the next several quarters.

Well-capitalized balance sheet

A solid capital base and low-double-digit ROE provide a durable cushion against credit losses and funding stress. Steady equity growth indicates capacity to support loan growth and dividends without frequent dilutive capital raises, preserving strategic optionality over months ahead.

Consistent dividend growth

A long streak of rising dividends, plus a recent 10% raise, signals disciplined capital allocation and management confidence in recurring cash generation. This steady payout policy supports investor trust and reflects enduring profitability and free-cash-flow coverage.

Negative Factors

Margin variability

Net interest margin and operating profitability have shown meaningful variability across cycles, reducing earnings predictability. Persistent sensitivity to rate and credit cycles can compress margins if funding costs rise or loan yields reset, increasing volatility in core bank earnings.

Rising leverage trend

A trend toward higher leverage, even from moderate levels, heightens exposure to funding-cost shocks and credit stress. Reduced capital headroom can constrain lending growth or force tougher capital choices under adverse conditions, weakening long-term financial flexibility.

Inconsistent cash generation

Historic volatility in operating cash flow and cash-flow-to-debt weakens confidence in sustained free-cash-flow conversion. Although 2025 improved, uneven cash durability complicates planning for dividends, organic growth, or loss-absorption during downturns without resorting to external funding.

Republic Bancorp Business Overview & Revenue Model

Company Description

Republic Bancorp, Inc., a financial holding company, provides various banking products and services in the United States. It operates in five segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions. The company accepts demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit. Its loan products include residential real estate, commercial real estate, construction and land development, home improvement and home equity, secured and unsecured personal, and aircraft loans. The company also offers credit cards; title insurance and other financial products and services; and memory banking, private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it provides short-term and revolving credit facilities to mortgage bankers; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; and general purpose reloadable prepaid cards through third party service providers. Further, the company offers consumer credit products; and property and casualty insurance products. As of January 28, 2022, it operated 42 full-service banking centers. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.

How the Company Makes Money

Republic Bancorp generates revenue primarily through interest income from loans and other financial products. The company earns money by providing various loan types, including commercial, consumer, and mortgage loans, which typically have interest rates that contribute significantly to its overall income. Additionally, Republic Bancorp collects fees from services such as account maintenance, transaction processing, and wealth management services. The bank also benefits from non-interest income sources, including service charges and fees on deposit accounts. Strategic partnerships with other financial institutions and businesses further enhance its offerings and customer reach, contributing to the growth of its revenue streams.

Republic Bancorp Financial Statement Overview

Summary

Strong multi-year revenue and earnings growth with solid recent profitability, supported by steady equity growth and low-double-digit ROE. Offsetting factors include cyclical/variable margins, slightly rising leverage into 2025, and historically uneven cash-flow strength despite improvement in 2024–2025.

Income Statement

Revenue and earnings show a strong multi-year upward trajectory, culminating in 2025 with materially higher revenue and net income versus prior years. Profitability is solid for the period, with healthy net margin and operating margin in 2024–2025. The key weakness is margin variability over time (notably lower profitability in 2024–2025 versus the unusually strong 2021–2022 margin profile), suggesting sensitivity to the rate/credit cycle.

Balance Sheet

The balance sheet appears well-capitalized with steady equity growth and consistent returns on equity around the low double-digits. Leverage is moderate for a regional bank, with debt-to-equity generally stable but trending slightly higher into 2025 versus 2022, which adds some balance-sheet risk if funding costs or credit conditions worsen. Overall asset growth has been steady, supporting scale expansion.

Cash Flow

Cash generation improved in 2024–2025 with higher operating cash flow and free cash flow, and 2025 shows strong conversion of earnings into free cash flow. However, cash flow quality looks inconsistent across earlier years and the cash-flow-to-debt signal is volatile (very low in 2023–2024 before rebounding in 2025), which is a caution flag on durability of cash generation through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	521.34M	499.79M	421.56M	316.22M	310.02M
Gross Profit	385.90M	324.58M	306.65M	286.38M	289.55M
EBITDA	165.71M	142.33M	128.22M	134.90M	129.75M
Net Income	131.32M	101.37M	90.37M	91.11M	87.61M
Balance Sheet
Total Assets	7.04B	6.85B	6.59B	5.83B	6.09B
Cash, Cash Equivalents and Short-Term Investments	219.97M	775.08M	907.88M	934.05M	1.25B
Total Debt	626.87M	535.44M	513.16M	349.76M	355.64M
Total Liabilities	5.94B	5.85B	5.68B	4.98B	5.26B
Stockholders Equity	1.10B	992.03M	912.76M	856.61M	834.23M
Cash Flow
Free Cash Flow	161.11M	143.19M	101.64M	151.29M	94.47M
Operating Cash Flow	168.21M	149.00M	108.53M	154.79M	100.25M
Investing Cash Flow	-436.12M	-181.03M	-516.95M	-254.51M	306.55M
Financing Cash Flow	55.73M	147.61M	411.30M	-343.56M	-135.42M

Republic Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBCAA, the sentiment is Negative. The current price of 73.83 is above the 20-day moving average (MA) of 70.02, above the 50-day MA of 70.94, and above the 200-day MA of 70.71, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 36.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBCAA.

Republic Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCOM	70 Outperform	$1.41B	10.17	4.23%	3.14%	-1.79%	-23.87%
RBCAA	69 Neutral	$1.21B	10.37	12.27%	2.57%	5.21%	24.51%
BY	69 Neutral	$1.39B	9.46	10.78%	1.34%	1.31%	2.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QCRH	65 Neutral	$1.38B	10.97	11.80%	0.28%	-2.42%	3.83%
BFC	65 Neutral	$1.53B	16.29	11.18%	3.99%	14.13%	-12.75%
CNOB	64 Neutral	$1.31B	8.36	5.49%	2.68%	15.55%	-28.10%

Republic Bancorp Corporate Events

Republic Bancorp Divests Finance Unit in Strategic Shift

On February 20, 2026, Republic Bancorp’s Republic Bank & Trust Company completed the sale of substantially all assets of its Republic Bank Finance division to CAN Capital Merchant Services, Inc., pursuant to an agreement first announced on December 22, 2025. The transaction transferred about $81 million in loans and leases and around $1 million in related liabilities, with pricing based on net book value plus a fixed premium.

As a result of the deal, the bank expects to record an estimated pre-tax gain of roughly $6 million, net of broker commissions, in the first quarter of 2026. The divestiture unwinds a business line that Republic had only recently added through its March 2023 acquisition of CBank, signaling a strategic reshaping of its portfolio and capital deployment priorities.

The most recent analyst rating on (RBCAA) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Republic Bancorp stock, see the RBCAA Stock Forecast page.

Republic Bancorp boosts quarterly dividend, extends growth streak

On January 21, 2026, Republic Bancorp, Inc. announced a 10% increase in its quarterly cash dividend, marking the 28th consecutive year of higher common stock dividends, with payments of $0.495 per Class A share and $0.45 per Class B share scheduled for April 17, 2026 to shareholders of record on March 20, 2026. The new dividend level implies an annualized dividend yield of 2.77% for Class A shares based on the January 20, 2026 closing price, underscoring the bank’s long-standing commitment to returning capital to shareholders and signaling continued confidence in its financial performance and stability within its regional banking markets.

The most recent analyst rating on (RBCAA) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Republic Bancorp stock, see the RBCAA Stock Forecast page.

Republic Bancorp to Divest Republic Bank Finance Division

On December 19, 2025, Republic Bancorp’s Republic Bank & Trust Company agreed to sell substantially all assets and certain liabilities of its Republic Bank Finance division to CAN Capital Merchant Services, an alternative small business finance firm based in Marietta, Georgia. The deal covers about $80 million of loans and leases and roughly $3 million in related liabilities, with CAN also taking over all ongoing RBF operations; the purchase price will equal the net book value of RBF’s assets and liabilities at closing plus a fixed premium, and Republic expects to recognize an approximate $6 million gain when the transaction closes in the first quarter of 2026, subject to standard conditions and CAN obtaining financing, signaling a strategic exit from this niche leasing and small-ticket finance unit while potentially strengthening its capital position.

The most recent analyst rating on (RBCAA) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Republic Bancorp stock, see the RBCAA Stock Forecast page.