1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: 2.31%
• Average Volume (3M): 106.53K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.78
• Revenue Growth: 9.30%
• EPS Growth: 15.19%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.52
• Shares Outstanding: 24,562,910
• 10 Day Avg. Volume: 150,405
• 30 Day Avg. Volume: 106,527
• PEG Ratio: 1.72
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.11
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $69.00
• Price Target Upside: 5.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $68.00 ▲(3.50%Upside)

The overall stock score for 1st Source is driven primarily by its solid financial performance and attractive valuation. While technical analysis suggests limited momentum, the company's commitment to innovation through recent corporate events is a positive factor for its market position.

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 makes money through various revenue streams in the financial services sector. Its primary source of income is interest income derived from loans and leases provided to individual and business customers. The company also generates revenue from fees and service charges associated with its banking services, such as account maintenance fees, overdraft fees, and transaction fees. Additionally, 1st Source earns income from its wealth advisory and trust services, which provide investment management and financial planning solutions. The company's specialty finance group contributes to its revenue through equipment leasing and financing for industries such as aviation, trucking, and construction. Strategic partnerships and client relationships further enhance its ability to generate consistent earnings.

1St Source Financial Statement Overview

Summary

1st Source exhibits solid financial health with consistent revenue and profit growth, strong cash flow, and a stable balance sheet. While profitability remains high, recent fluctuations in revenue growth and free cash flow should be monitored.

Income Statement

1st Source has demonstrated a strong revenue growth trajectory with a notable increase in total revenue from 2020 to TTM 2025. The gross profit margin and net profit margin indicate healthy profitability, though a slight decline was observed recently. EBIT and EBITDA margins remain robust, underscoring effective cost management.

Balance Sheet

The balance sheet reflects stability with a relatively low debt-to-equity ratio, indicating prudent financial leverage. Return on equity shows strong performance, although there is a minor decrease in equity ratio, suggesting a slight increase in liabilities relative to assets.

Cash Flow

Operating cash flow remains strong, with positive free cash flow indicating good liquidity management. The free cash flow to net income ratio is favorable, although there was a recent decrease in free cash flow growth, which might signal caution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	578.11M	570.32M	507.53M	385.08M	354.86M	366.92M
Gross Profit	387.96M	374.66M	363.40M	341.49M	341.03M	293.71M
EBITDA	192.40M	183.42M	177.14M	175.87M	178.88M	137.42M
Net Income	140.69M	132.62M	124.93M	120.51M	118.53M	81.44M
Balance Sheet
Total Assets	8.96B	8.93B	8.73B	8.34B	8.10B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.02B	1.70B	1.86B	1.92B	1.27B
Total Debt	161.15M	325.05M	397.39M	302.94M	309.44M	270.91M
Total Liabilities	7.74B	7.75B	7.66B	7.42B	7.13B	6.39B
Stockholders Equity	1.16B	1.11B	989.57M	864.07M	916.25M	886.85M
Cash Flow
Free Cash Flow	209.38M	181.49M	181.96M	173.15M	163.88M	151.64M
Operating Cash Flow	223.69M	194.07M	187.94M	175.53M	166.76M	154.49M
Investing Cash Flow	-213.62M	-276.61M	-358.29M	-784.87M	-598.56M	-582.66M
Financing Cash Flow	131.84M	77.91M	177.22M	206.95M	713.94M	587.85M

1St Source Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 65.7 is above the 20-day moving average (MA) of 61.39, above the 50-day MA of 60.99, and above the 200-day MA of 60.47, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 71.01 is Negative, neither overbought nor oversold. The STOCH value of 97.28 is Negative, 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
NBHC	75 Outperform	$1.53B	13.84	8.68%	3.00%	1.63%	-16.82%
SRCE	75 Outperform	$1.60B	11.31	12.84%	2.31%	9.30%	15.19%
CUBI	74 Outperform	$2.08B	16.58	8.14%	―	-5.67%	-44.11%
STEL	73 Outperform	$1.53B	13.65	7.40%	1.89%	-0.58%	-3.02%
LKFN	68 Neutral	$1.65B	18.44	13.44%	3.06%	5.03%	-3.19%
Sector *	62 Neutral	AU$9.99B	8.04	10.82%	5.10%	33.02%	38.31%
CLBK	47 Neutral	$1.57B	97.23	-0.15%	―	4.29%	-109.93%

1St Source Corporate Events

1st Source Highlights Q1 2025 Achievements in Investor Presentation

1st Source Corporation has announced its investor presentation for the first quarter of 2025, highlighting its diverse financial services and significant achievements in renewable energy financing and specialty finance. The company has made substantial investments in renewable energy projects, contributing to significant carbon emissions reduction, and has launched instant payment systems, RTP and FedNow, which have processed over $270 million in transactions since their introduction in 2023. These developments underscore 1st Source’s commitment to innovation and sustainability, enhancing its market position and offering potential benefits to stakeholders.