1St Source (SRCE)
NASDAQ:SRCE
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1St Source
(NASDAQ:SRCE)
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Rating:72Outperform
Price Target:
$78.00
▲(4.82% Upside)
Action:ReiteratedDate:02/18/26
SRCE scores highest on technical strength and reasonable valuation, supported by solid profitability and improving leverage. The overall score is held back most by the sharp deterioration to zero reported 2025 operating/free cash flow, which raises uncertainty about recent cash conversion quality.
Positive Factors
Renewable energy finance expansion
A sizeable and growing renewable finance book diversifies revenue beyond local commercial banking, leverages specialty finance margins, and builds a national niche. This aligns with structural clean-energy demand and can create durable fee and interest income streams over multiple years.
Negative Factors
2025 cash-flow collapse
A sudden drop to zero operating and free cash flow materially undermines earnings quality and internal funding. Over the medium term this can constrain organic loan growth, dividend flexibility, or force reliance on external funding, making cash conversion a persistent monitoring item.
Read all positive and negative factors
Positive Factors
Negative Factors
Renewable energy finance expansion
A sizeable and growing renewable finance book diversifies revenue beyond local commercial banking, leverages specialty finance margins, and builds a national niche. This aligns with structural clean-energy demand and can create durable fee and interest income streams over multiple years.
Read all positive factors
1St Source (SRCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.81B
Dividend Yield2.37%
Average Volume (3M)141.20K
Price to Earnings (P/E)9.3
Beta (1Y)0.69
Revenue Growth5.09%
EPS Growth15.78%
CountryUS
Employees1,205
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.67
Shares Outstanding24,330,147
10 Day Avg. Volume199,194
30 Day Avg. Volume141,198
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.20
Price to Sales (P/S)2.54
P/FCF Ratio7.15
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit4.95
Enterprise Value/Ebitda9.76
Forecast
1Y Price Target
$76.33Price Target Upside2.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.65
Revenue Forecast (FY)$455.60M
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 ban...
How the Company Makes Money
1st Source generates revenue primarily through interest income from loans and fees associated with its banking services. The company's main revenue streams include interest earned on commercial and consumer loans, mortgage financing, and leasing s...
1St Source Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 600.00M | 570.32M | 507.53M | 385.08M | 354.86M |
| Gross Profit | 421.93M | 374.66M | 363.40M | 341.49M | 341.03M |
| EBITDA | 214.03M | 183.42M | 177.14M | 175.87M | 178.88M |
| Net Income | 158.27M | 132.62M | 124.93M | 120.51M | 118.53M |
Balance Sheet | |||||
| Total Assets | 9.06B | 8.93B | 8.73B | 8.34B | 8.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 1.02B | 1.70B | 1.86B | 1.92B |
| Total Debt | 340.71M | 325.05M | 397.39M | 302.94M | 309.44M |
| Total Liabilities | 7.74B | 7.75B | 7.66B | 7.42B | 7.13B |
| Stockholders Equity | 1.27B | 1.11B | 989.57M | 864.07M | 916.25M |
Cash Flow | |||||
| Free Cash Flow | 213.03M | 181.49M | 181.96M | 173.15M | 163.88M |
| Operating Cash Flow | 223.12M | 194.07M | 187.94M | 175.53M | 166.76M |
| Investing Cash Flow | -154.22M | -276.61M | -358.29M | -784.87M | -598.56M |
| Financing Cash Flow | -73.87M | 77.91M | 177.22M | 206.95M | 713.94M |
1St Source Technical Analysis
Positive
74.41
Price Trends
68.63
Positive
66.09
Positive
63.52
Positive
Market Momentum
1.05
Negative
74.12
Negative
94.09
Negative
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 74.41 is above the 20-day moving average (MA) of 68.69, above the 50-day MA of 68.63, and above the 200-day MA of 63.52, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 74.12 is Negative, neither overbought nor oversold. The STOCH value of 94.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRCE.
1St Source Risk Analysis
1St Source disclosed 23 risk factors in its most recent earnings report. 1St Source reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
1St Source Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.63B | 11.32 | 9.25% | 3.38% | -1.48% | -1.58% | |
73 Outperform | $1.92B | 15.57 | 6.38% | 1.82% | -4.40% | -8.80% | |
72 Outperform | $1.81B | 9.26 | 13.00% | 2.37% | 5.09% | 15.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.67B | 12.80 | 10.75% | 2.89% | 30.45% | 3.13% | |
58 Neutral | $2.19B | 5.76 | 9.89% | 1.19% | -2.45% | -28.20% | |
55 Neutral | $1.93B | 30.45 | 1.34% | ― | -3.60% | -8.63% |
* Financial Sector Average
SRCE
1St Source
74.41
22.04
42.10%
GABC
German American Bancorp
44.43
11.11
33.33%
STBA
S&T Bancorp
44.55
12.56
39.26%
MBIN
Merchants Bancorp
47.54
15.51
48.43%
STEL
Stellar Bancorp
37.72
13.19
53.77%
CLBK
Columbia Financial
18.50
5.30
40.15%
1St Source Corporate Events
Business Operations and StrategyFinancial Disclosures
1st Source Highlights Q4 2025 Growth and Renewable Expansion
Positive
Jan 30, 2026
In an investor presentation for the fourth quarter of 2025, 1st Source highlighted a diversified loan and lease portfolio split roughly evenly between community banking and specialty finance, supported by 78 banking centers, extensive wealth and i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.