SR Bancorp, Inc. (SRBK) AI Stock Analysis

• Market Cap: $125.36M
• Dividend Yield: 0.88%
• Average Volume (3M): 33.25K
• Price to Earnings (P/E): 45.7
• Beta (1Y): 0.36
• 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: 3.50
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 24.68
• 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: 68 Neutral
• Price Target: $19.00 ▲(13.50% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by improving financial performance (revenue growth and recovery from 2024) and constructive technical momentum. These are partly offset by a rich valuation (high P/E with a modest dividend), while corporate events are positive but incremental.

Positive Factors

Multi-year revenue growth

Sustained revenue expansion across multiple years reflects scalable loan originations and deposit gathering, aided by post-merger growth. This durable top-line momentum supports continued earnings recovery and provides a structural base for margin normalization and strategic reinvestment over 2–6 months.

Improved cash generation

Free cash flow closely tracking earnings and a clear rebound from 2024 negatives indicate stronger cash conversion. Robust, repeatable FCF supports dividends, loan growth funding, and capital needs, reducing liquidity strain and improving durability of capital allocation over the medium term.

Conservative balance sheet

Moderate leverage and a sizable equity cushion give the bank capacity to absorb credit losses and finance measured growth. A conservatively positioned balance sheet enhances resilience to shocks, preserves regulatory headroom, and supports sustained lending activity and dividend policy over the coming quarters.

Negative Factors

Low return on equity

Persistently muted ROE signals the bank generates limited profit from its capital base relative to peers. Low capital efficiency constrains long-term shareholder value creation, may force retention of earnings for capital building, and limits flexibility for higher payouts or rapid growth.

Profitability volatility

Large swings from a significant 2024 loss to 2025 recovery reveal earnings sensitivity to credit costs and operating items. This variability undermines predictability of net income, complicates capital planning and dividend visibility, and raises execution risk over the medium term.

Leverage trending higher

An upward trend in leverage (debt-to-equity rising to ~0.29 TTM) reduces margin for error versus prior ultra-conservative structure. Higher debt increases funding and interest-rate sensitivity and narrows flexibility to respond to credit stress or pursue opportunistic growth without additional capital.

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 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

Strong multi-year revenue growth and a clear rebound in profitability and cash generation after a weak 2024. Balance sheet leverage remains moderate, but is trending higher, while ROE is positive yet modest—highlighting improving fundamentals with some earnings and cash-flow consistency risk.

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 17.15, above the 50-day MA of 16.70, and above the 200-day MA of 14.97, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 38.12 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
SBFG	75 Outperform	$130.76M	9.48	10.12%	2.69%	10.78%	21.72%
UNB	74 Outperform	$106.54M	9.57	15.11%	6.08%	14.52%	27.90%
SRBK	68 Neutral	$125.36M	45.66	1.57%	0.88%	9.43%	166.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFBI	64 Neutral	$122.74M	15.33	5.95%	―	5.18%	36.12%
SFBC	64 Neutral	$108.98M	15.33	6.52%	1.75%	2.85%	73.41%
BSBK	48 Neutral	$110.10M	51.30	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.

The most recent analyst rating on (SRBK) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on SR Bancorp, Inc. stock, see the SRBK Stock Forecast page.

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.

The most recent analyst rating on (SRBK) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on SR Bancorp, Inc. stock, see the SRBK Stock Forecast page.

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.

The most recent analyst rating on (SRBK) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on SR Bancorp, Inc. stock, see the SRBK Stock Forecast page.