SR Bancorp, Inc. (SRBK) AI Stock Analysis

• Market Cap: $124.68M
• Dividend Yield: 0.88%
• Average Volume (3M): 33.25K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.37
• Revenue Growth: 9.43%
• EPS Growth: 166.36%
• Country: US
• Employees: 116
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.09
• Shares Outstanding: 8,335,468
• 10 Day Avg. Volume: 26,695
• 30 Day Avg. Volume: 33,252
• PEG Ratio: -0.16
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 26.90
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 3.48
• Enterprise Value/Gross Profit: 5.36
• Enterprise Value/Ebitda: 24.54
• 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: 59 Neutral
• Price Target: $17.00 ▲(1.55% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is led by improving financial performance (revenue growth and a rebound in profitability and cash generation), partially offset by weak near-term technical momentum and a high P/E with only a modest dividend yield. The recent dividend announcement adds a small positive.

Positive Factors

Multi‑year Revenue Growth

A sustained, multi-year revenue ramp expands the firm’s revenue base and underwriting scale, enabling reinvestment in lending capacity and branch/service expansion. This structural growth improves resilience to cyclical shocks and supports long-term earnings normalization as top line converts to recurring bank income.

Rebounded Cash Generation

Near‑term cash generation has recovered to nearly match net income, providing durable internal funding for loan growth, reserves, and dividends. Strong free cash flow reduces reliance on external financing and supports capital allocation flexibility across lending and shareholder returns over the coming quarters.

Dividend & Capital Confidence

A reinstated quarterly dividend signals management confidence in capital adequacy and earnings durability. Regular payouts create discipline on capital usage and reassure depositors/investors about long‑term balance sheet health, supporting customer and investor trust in the regional franchise.

Negative Factors

Low Return on Equity

Persistently low ROE limits the bank’s ability to organically grow book value and attract capital relative to peers. Low capital efficiency constrains retained earnings accumulation, hinders buffer buildup against credit cycles, and reduces long‑term shareholder return potential absent sustained margin improvement.

Profitability Volatility

Material swings in profitability reduce predictability of earnings and complicate capital planning and provisioning. Volatility undermines the reliability of dividend policy and strategic investments, and heightens sensitivity to credit or interest‑rate shocks that could erode earnings in subsequent periods.

Rising Leverage Trend

An upward trend in leverage reduces the cushion against asset deterioration and raises funding risk exposure. While current leverage remains moderate, an increasing debt load can magnify earnings volatility and constrain strategic flexibility if credit stress or deposit pressures emerge over the medium term.

SR Bancorp, Inc. Business Overview & Revenue Model

Company Description

SR Bancorp, Inc., through its subsidiary, Somerset Savings Bank, SLA, provides commercial banking services. The company offers various deposit and loan products to individuals and small businesses. It operates branches in Hunterdon, Middlesex, and Somerset Counties, New Jersey. The company was founded in 1887 and is based in Bound Brook, New Jersey.

How the Company Makes Money

SR Bancorp primarily earns money through its subsidiary bank’s net interest income and noninterest income. Net interest income is generated by originating and holding interest-earning assets—primarily loans (e.g., commercial real estate, residential mortgage, and commercial/business loans) and, to a lesser extent, investment securities—and funding those assets with interest-bearing and noninterest-bearing deposits and other borrowings; the company profits from the spread between interest earned on assets and interest paid on liabilities. Noninterest income is generated from banking-related fees and service charges associated with deposit accounts and other customer services (for example, account service fees and other transaction-related charges), and may also include other ancillary banking revenues when applicable. Earnings are also influenced by credit performance (loan losses/charge-offs and provision for credit losses), balance sheet growth (loan and deposit volumes), and the interest rate environment, which affects both asset yields and funding costs. Information on significant partnerships: null.

SR Bancorp, Inc. Financial Statement Overview

Summary

Fundamentals are improving: revenue has ramped strongly over multiple years and profitability/cash flow recovered meaningfully after a weak 2024. Balance sheet leverage remains moderate but is trending higher, and returns on equity are still modest, indicating better momentum but uneven earnings quality/stability.

Income Statement

Results show a strong multi-year revenue ramp (annual revenue rising from ~$14.4M in 2021 to ~$50.0M in 2025, with TTM (Trailing-Twelve-Months) up ~143% vs. the prior annual period). Profitability, however, has been volatile: 2024 posted a sizable loss and negative operating profit, followed by a return to profitability in 2025 (TTM net margin ~8.4% vs. ~10.3% in 2025 annual). Margins remain positive but below earlier peak levels, indicating earnings power has improved but is still normalizing after the 2024 disruption.

Balance Sheet

The balance sheet looks conservatively positioned overall, with moderate leverage and a sizable equity base. Debt remains reasonable relative to equity (debt-to-equity ~0.17 in 2025 annual and ~0.29 in TTM (Trailing-Twelve-Months)), though leverage has clearly increased from earlier periods that carried little to no debt. Returns on equity are positive but modest (about ~2.2% TTM (Trailing-Twelve-Months) and ~2.7% in 2025 annual), suggesting capital strength but still-low profitability on that capital.

Cash Flow

Cash generation is currently a positive, with TTM (Trailing-Twelve-Months) operating cash flow of ~$9.1M and free cash flow of ~$8.9M, and free cash flow closely tracking reported earnings (free cash flow to net income ~0.97 TTM (Trailing-Twelve-Months)). Cash flow has also rebounded sharply from 2024, when both operating and free cash flow were negative. The main watch item is variability across periods (including a notably weak operating cash flow coverage figure in 2025 annual), which points to less-consistent cash conversion year to year.

Breakdown	TTM	Jun 2024	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	51.00M	50.05M	38.37M	17.38M	14.78M	14.39M
Gross Profit	33.14M	33.18M	22.81M	14.96M	13.25M	11.98M
EBITDA	7.24M	8.47M	-9.60M	2.20M	2.63M	1.85M
Net Income	4.28M	5.14M	-10.86M	1.55M	1.87M	1.25M
Balance Sheet
Total Assets	1.14B	1.08B	1.02B	651.49M	648.63M	639.36M
Cash, Cash Equivalents and Short-Term Investments	3.93M	58.02M	45.93M	78.55M	83.22M	103.88M
Total Debt	55.57M	33.21M	2.40M	20.02M	0.00	0.00
Total Liabilities	954.51M	890.63M	821.36M	529.40M	530.40M	517.41M
Stockholders Equity	188.45M	193.78M	199.48M	122.08M	118.23M	121.94M
Cash Flow
Free Cash Flow	8.87M	4.23M	-2.84M	1.80M	708.00K	2.15M
Operating Cash Flow	9.12M	4.67M	-1.74M	2.32M	1.03M	2.39M
Investing Cash Flow	-52.88M	-50.48M	11.75M	2.69M	-34.90M	-71.95M
Financing Cash Flow	72.17M	57.69M	-6.55M	2.09M	12.46M	28.65M

SR Bancorp, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRBK, the sentiment is Negative. The current price of 16.74 is below the 20-day moving average (MA) of 16.75, below the 50-day MA of 16.84, and above the 200-day MA of 15.21, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 43.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRBK.

SR Bancorp, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNB	74 Outperform	$103.65M	9.78	14.80%	6.08%	14.52%	27.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBFG	66 Neutral	$125.36M	10.15	10.29%	2.69%	10.78%	21.72%
SFBC	65 Neutral	$106.47M	12.42	6.70%	1.75%	2.85%	73.41%
AFBI	64 Neutral	$115.83M	14.73	6.68%	―	5.18%	36.12%
SRBK	59 Neutral	$124.68M	35.78	1.57%	0.88%	9.43%	166.36%
BSBK	48 Neutral	$105.69M	39.11	1.50%	―	-15.09%	―

SR Bancorp, Inc. Corporate Events

SR Bancorp Declares Quarterly Dividend, Signals Ongoing Strength

On March 19, 2026, SR Bancorp, Inc., the Nasdaq-listed holding company for Somerset Regal Bank, said its board had declared a quarterly cash dividend of $0.05 per share. The dividend is scheduled to be paid on April 15, 2026 to stockholders of record as of March 31, 2026, marking a direct capital return to shareholders.

Executive Chairman David Orbach said the payout reflects the company’s strong financial position, signaling confidence in the bank’s balance sheet and earnings capacity. The move highlights SR Bancorp’s ability to support regular shareholder distributions while operating as a growing New Jersey community and commercial banking franchise.

The most recent analyst rating on (SRBK) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on SR Bancorp, Inc. stock, see the SRBK Stock Forecast page.