SR Bancorp, Inc. (SRBK) AI Stock Analysis

• Market Cap: $126.75M
• Dividend Yield: 0.88%
• Average Volume (3M): 33.25K
• Price to Earnings (P/E): 43.3
• Beta (1Y): 0.35
• 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: 8,532,170
• 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: 0.77
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 13.10
• 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: 67 Neutral
• Price Target: $18.00 ▲(7.53% Upside)

SR Bancorp, Inc. shows strong financial performance with robust revenue growth and a stable balance sheet, which are the most significant factors driving the score. Technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. Valuation concerns arise from a high P/E ratio, suggesting potential overvaluation. Positive corporate events further bolster the stock's appeal.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Stable Balance Sheet

A low debt-to-equity ratio reflects prudent financial management, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Leadership Transition

The planned leadership transition suggests strategic continuity and potential for new growth initiatives, leveraging experienced leadership to drive future success.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow could impact liquidity and limit the company's ability to finance new projects or return capital to shareholders, posing a risk to financial stability.

Operational Challenges

Declining EBIT and EBITDA margins indicate potential operational inefficiencies, which could hinder profitability and require strategic adjustments to maintain competitive positioning.

Modest Return on Equity

A modest return on equity suggests limited effectiveness in generating returns for shareholders, potentially affecting investor confidence and the company's attractiveness in the market.

SR Bancorp, Inc. Business Overview & Revenue Model

Company Description

SR Bancorp, Inc. (SRBK) is a financial holding company primarily engaged in the provision of banking and financial services through its subsidiary bank. The company operates within the banking sector, offering a range of products and services that include commercial and retail banking, lending, deposit accounts, and wealth management services. SR Bancorp aims to serve both individual and business clients, focusing on building long-term relationships and delivering personalized financial solutions.

How the Company Makes Money

SR Bancorp generates revenue primarily through interest income from loans, which include commercial, residential, and consumer lending. The company also earns money from fees associated with deposit accounts, transaction services, and wealth management offerings. Additionally, SRBK benefits from non-interest income generated through service charges, investment management fees, and other ancillary financial services. Strategic partnerships with local businesses and community organizations further enhance its market presence and revenue potential, while prudent asset management and a diversified loan portfolio contribute to the overall financial stability of the company.

SR Bancorp, Inc. Financial Statement Overview

Summary

SR Bancorp, Inc. demonstrates strong revenue growth and profitability, supported by a stable balance sheet with low leverage. While cash flow management is generally effective, the recent decline in free cash flow growth warrants attention. Overall, the company is well-positioned but should focus on improving operational efficiency and cash flow generation.

Income Statement

SR Bancorp, Inc. shows a strong revenue growth rate of 46.4% in the TTM, indicating robust expansion. The gross profit margin is healthy at 64.88%, and the net profit margin is 8.87%, reflecting solid profitability. However, the EBIT and EBITDA margins have declined compared to the previous year, suggesting some operational challenges.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.198, indicating prudent leverage management. The return on equity is modest at 1.58%, suggesting room for improvement in generating returns for shareholders. The equity ratio is strong, highlighting a stable financial position.

Cash Flow

Free cash flow has decreased by 14.44% in the TTM, which could be a concern for liquidity. However, the operating cash flow to net income ratio is healthy at 1.35, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also strong at 0.89, suggesting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.28M	50.05M	38.37M	17.38M	14.78M	14.39M
Gross Profit	32.63M	33.18M	22.81M	14.96M	13.25M	11.98M
EBITDA	7.49M	8.47M	-9.60M	2.20M	2.63M	1.85M
Net Income	4.46M	5.14M	-10.86M	1.55M	1.87M	1.25M
Balance Sheet
Total Assets	1.11B	1.08B	1.02B	651.49M	648.63M	639.36M
Cash, Cash Equivalents and Short-Term Investments	4.45M	58.02M	45.93M	78.55M	83.22M	103.88M
Total Debt	38.00M	33.21M	2.40M	20.02M	0.00	0.00
Total Liabilities	918.16M	890.63M	821.36M	529.40M	530.40M	517.41M
Stockholders Equity	191.93M	193.78M	199.48M	122.08M	118.23M	121.94M
Cash Flow
Free Cash Flow	3.62M	4.23M	-2.84M	1.80M	708.00K	2.15M
Operating Cash Flow	4.05M	4.67M	-1.74M	2.32M	1.03M	2.39M
Investing Cash Flow	-44.25M	-50.48M	11.75M	2.70M	-34.90M	-71.95M
Financing Cash Flow	51.21M	57.69M	-6.55M	2.09M	12.46M	28.65M

SR Bancorp, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.74
• 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 SRBK, the sentiment is Positive. The current price of 16.74 is above the 20-day moving average (MA) of 16.10, above the 50-day MA of 15.35, and above the 200-day MA of 13.96, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 72.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRBK.

SR Bancorp, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	78 Outperform	$140.84M	10.54	10.12%	2.68%	10.78%	21.72%
UNB	75 Outperform	$109.02M	9.56	15.11%	6.05%	14.52%	27.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFBI	68 Neutral	$131.80M	18.42	5.95%	―	5.18%	36.12%
SRBK	67 Neutral	$126.75M	43.26	1.57%	0.88%	9.43%	166.36%
SFBC	63 Neutral	$111.68M	16.46	6.52%	1.75%	2.85%	73.41%
BSBK	48 Neutral	$106.34M	216.96	0.35%	―	-15.09%	―

SR Bancorp, Inc. Corporate Events

SR Bancorp Announces Quarterly Cash Dividend Declaration

On December 18, 2025, SR Bancorp, Inc., the parent of Somerset Regal Bank, announced that its board had declared a quarterly cash dividend of $0.05 per share, payable on January 15, 2026 to shareholders of record as of December 31, 2025. The company highlighted that the decision reflects its strong financial position, signaling confidence in its capital base and earnings capacity and providing a direct return to investors that may enhance its appeal among income-focused shareholders in the regional banking sector.

SR Bancorp Announces CEO Retirement and Succession

On November 19, 2025, SR Bancorp, Inc. announced the retirement of William P. Taylor as CEO, effective January 1, 2026, with Christopher J. Pribula set to succeed him. Taylor will remain as a director and Executive Chairman of Somerset Regal Bank. Neil Viotto will be promoted to Executive Vice President and COO. These changes are part of a strategic leadership transition, reflecting the company’s ongoing evolution and commitment to leveraging experienced leadership to drive future growth.

SR Bancorp Elects Directors and Ratifies Auditor

At the Annual Meeting of Stockholders held on November 19, 2025, SR Bancorp, Inc. elected directors for varying terms and ratified the appointment of Baker Tilly US, LLP as its independent registered public accounting firm for the fiscal year ending June 30, 2026. The meeting also highlighted the company’s financial growth, including an increase in assets and loans since its merger with Regal Bank in September 2023, indicating a positive trajectory for the company’s operations and market positioning.

SR Bancorp Declares Quarterly Cash Dividend

On September 22, 2025, SR Bancorp, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share, to be paid on October 15, 2025, to stockholders of record as of September 30, 2025. This announcement reflects the company’s strong financial position and commitment to returning value to its shareholders, potentially enhancing its attractiveness in the financial market.