1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: 2.34%
• Average Volume (3M): 67.75K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.75
• Revenue Growth: 6.43%
• EPS Growth: 11.69%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.51
• Shares Outstanding: 24,537,756
• 10 Day Avg. Volume: 58,825
• 30 Day Avg. Volume: 67,750
• PEG Ratio: 1.64
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 7.88
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 8.83
• 1Y Price Target: $70.33
• Price Target Upside: 10.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $69.00 ▲(8.88% Upside)

1st Source Corporation is well-positioned with strong financial performance and attractive valuation. The company's strategic initiatives in renewable energy and payment systems are significant positives. However, technical indicators suggest caution due to potential overbought conditions and weak momentum.

1St Source Business Overview & Revenue Model

Company Description

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. As of December 31, 2021, the company operated through 79 banking centers in 18 counties in Indiana and Michigan, as well as Sarasota County in Florida. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

How the Company Makes Money

1st Source Corporation generates revenue primarily through interest income from loans, fees from banking services, and investment income. The bank earns interest from personal and commercial loans, which constitutes a significant portion of its revenue. Additionally, the bank charges fees for various services, including account maintenance, transaction services, and wealth management. The company also benefits from its equipment financing division, which provides loans for the purchase of machinery and equipment, generating further interest income. Significant partnerships with local businesses and industries enhance its market reach and contribute to its earnings through increased loan origination and service utilization.

1St Source Financial Statement Overview

Summary

1st Source demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage and strong returns on equity. However, the decline in free cash flow growth and low operating cash flow coverage ratio highlight potential cash flow management issues.

Income Statement

1st Source has demonstrated consistent revenue growth over the years, with a TTM revenue growth rate of 1.8%. The company maintains strong profitability with a gross profit margin of 67% and a net profit margin of 24.2% in the TTM period. EBIT and EBITDA margins are also healthy, indicating efficient operations. However, there is a slight decline in gross profit margin compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.18 in the TTM period, indicating prudent leverage management. Return on equity is robust at 12.3%, showcasing effective use of equity to generate profits. The equity ratio stands at 13.2%, suggesting a stable capital structure. However, the slight increase in debt levels over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth in the TTM period, down by 55.3%, which is a concern. The operating cash flow to net income ratio is low at 0.013, indicating potential cash flow challenges. However, the free cash flow to net income ratio remains strong at 91.9%, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	583.99M	570.32M	507.53M	385.08M	354.86M	366.92M
Gross Profit	391.30M	374.66M	363.40M	341.49M	341.03M	293.71M
EBITDA	192.97M	183.42M	177.14M	175.87M	178.88M	137.42M
Net Income	141.22M	132.62M	124.93M	120.51M	118.53M	81.44M
Balance Sheet
Total Assets	9.09B	8.93B	8.73B	8.34B	8.10B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.02B	1.70B	1.86B	1.92B	1.27B
Total Debt	210.67M	325.05M	397.39M	302.94M	309.44M	270.91M
Total Liabilities	7.83B	7.75B	7.66B	7.42B	7.13B	6.39B
Stockholders Equity	1.20B	1.11B	989.57M	864.07M	916.25M	886.85M
Cash Flow
Free Cash Flow	206.01M	181.49M	181.96M	173.15M	163.88M	151.64M
Operating Cash Flow	218.55M	194.07M	187.94M	175.53M	166.76M	154.49M
Investing Cash Flow	-361.33M	-276.61M	-358.29M	-784.87M	-598.56M	-582.66M
Financing Cash Flow	22.65M	77.91M	177.22M	206.95M	713.94M	587.85M

1St Source Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.37
• 50DMA: Positive
• 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 SRCE, the sentiment is Positive. The current price of 63.37 is below the 20-day moving average (MA) of 63.94, above the 50-day MA of 62.35, and above the 200-day MA of 60.75, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRCE.

1St Source Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GABC	79 Outperform	1.52B	15.38	8.05%	2.82%	22.42%	-5.59%
STEL	77 Outperform	1.58B	14.31	6.87%	1.82%	-2.85%	-0.33%
SRCE	75 Outperform	$1.55B	10.92	12.49%	2.34%	6.43%	11.69%
STBA	74 Outperform	1.47B	11.18	9.06%	3.54%	-0.57%	-3.92%
MBIN	64 Neutral	1.45B	6.92	11.59%	1.24%	3.49%	-30.76%
CLBK	58 Neutral	1.62B	256.57	0.55%	―	-0.90%	-67.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

1St Source Corporate Events

1st Source Expands Renewable Energy Financing Initiatives

1st Source Corporation has launched instant payment systems, Real Time Payments (RTP) and FedNow, in 2023, significantly enhancing its transaction capabilities with over $345 million processed and 298,000 transactions completed. The company’s renewable energy financing division has made substantial investments, with over $573 million in loans and leases and $180 million in tax equity investments as of June 30, 2025, contributing to significant environmental impact by reducing carbon emissions.