1St Source (SRCE)
NASDAQ:SRCE
Want to see SRCE full AI Analyst Report?
Top Page
1St Source
(NASDAQ:SRCE)
Select Model
Select Model
Rating:76Outperform
Price Target:
$83.00
▲(11.19% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by solid underlying financial profitability/returns and an attractive valuation (low P/E with a decent dividend). Technicals are supportive with the stock trading above key moving averages, while weaker top-line/FCF momentum and modest dilution risk from expanded equity plans keep the score from being higher.
Positive Factors
High Profitability
Sustained high operating and net margins indicate the bank converts revenue to profits efficiently relative to peers. Durable margin structure supports internal capital generation, funds dividend payments and reinvestment, and provides a buffer against cyclical credit stress over the next 2-6 months.
Negative Factors
Top-line Weakness
Declining revenue signals pressure on core lending or fee businesses and limits scope for margin expansion. If trend persists, it could force tighter expense management or slower balance sheet growth, reducing long-term earnings momentum and strategic investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high operating and net margins indicate the bank converts revenue to profits efficiently relative to peers. Durable margin structure supports internal capital generation, funds dividend payments and reinvestment, and provides a buffer against cyclical credit stress over the next 2-6 months.
Read all positive factors
1St Source (SRCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.78B
Dividend Yield2.37%
Average Volume (3M)141.20K
Price to Earnings (P/E)10.5
Beta (1Y)0.72
Revenue Growth4.51%
EPS Growth14.48%
CountryUS
Employees1,205
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.56
Shares Outstanding24,068,892
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 Cap1.18
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit4.91
Enterprise Value/Ebitda9.63
Forecast
1Y Price Target
$81.00Price Target Upside8.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest and fees collected on interest-earning assets—mainly commercial loans, consumer loans (incl...
1St Source Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 602.72M | 600.00M | 570.32M | 507.53M | 385.08M | 354.86M |
| Gross Profit | 427.02M | 421.93M | 374.66M | 363.40M | 341.49M | 341.03M |
| EBITDA | 217.66M | 214.03M | 183.42M | 177.14M | 175.87M | 178.88M |
| Net Income | 160.71M | 158.27M | 132.62M | 124.93M | 120.51M | 118.53M |
Balance Sheet | ||||||
| Total Assets | 9.11B | 9.06B | 8.93B | 8.73B | 8.34B | 8.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.30B | 1.59B | 1.02B | 1.70B | 1.86B | 1.92B |
| Total Debt | 383.45M | 340.71M | 325.05M | 397.39M | 302.94M | 309.44M |
| Total Liabilities | 7.79B | 7.74B | 7.75B | 7.66B | 7.42B | 7.13B |
| Stockholders Equity | 1.28B | 1.27B | 1.11B | 989.57M | 864.07M | 916.25M |
Cash Flow | ||||||
| Free Cash Flow | 209.89M | 213.03M | 181.49M | 181.96M | 173.15M | 163.88M |
| Operating Cash Flow | 210.47M | 223.12M | 194.07M | 187.94M | 175.53M | 166.76M |
| Investing Cash Flow | -261.56M | -154.22M | -276.61M | -358.29M | -784.87M | -598.56M |
| Financing Cash Flow | -52.92M | -73.87M | 77.91M | 177.22M | 206.95M | 713.94M |
1St Source Technical Analysis
Positive
74.65
Price Trends
71.41
Positive
68.98
Positive
65.09
Positive
Market Momentum
0.36
Negative
58.76
Neutral
78.76
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 74.65 is above the 20-day moving average (MA) of 72.95, above the 50-day MA of 71.41, and above the 200-day MA of 65.09, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.76 is Neutral, 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 | $1.61B | 11.13 | 9.35% | 3.38% | 2.41% | 3.01% | |
76 Outperform | $1.78B | 10.51 | 12.89% | 2.37% | 4.51% | 14.48% | |
76 Outperform | $1.63B | 11.82 | 11.95% | 2.89% | 31.27% | 45.08% | |
68 Neutral | $1.91B | 17.34 | 6.38% | 1.82% | -3.22% | -5.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $2.12B | 33.84 | 4.87% | ― | 12.80% | ― | |
59 Neutral | $2.11B | 7.27 | 10.12% | 1.19% | -5.09% | -24.74% |
* Financial Sector Average
SRCE
1St Source
73.95
15.30
26.08%
GABC
German American Bancorp
43.27
6.46
17.54%
STBA
S&T Bancorp
44.86
9.62
27.30%
MBIN
Merchants Bancorp
45.99
14.89
47.88%
STEL
Stellar Bancorp
37.47
11.22
42.75%
CLBK
Columbia Financial
20.36
6.16
43.38%
1St Source Corporate Events
Business Operations and StrategyFinancial Disclosures
1st Source highlights Q1 2026 strategy and digital growth
Positive
May 1, 2026
1st Source Corporation’s executive team has released an investor presentation for the first quarter of 2026 that highlights the bank’s diversified business mix, growing renewable energy financing platform, and expanding digital capabil...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
1st Source Shareholders Approve Expanded Equity Compensation Plans
Positive
Apr 24, 2026
At its April 23, 2026 annual meeting, 1st Source Corporation shareholders approved amendments to three key compensation plans, shifting the Executive Incentive Plan and Strategic Deployment Incentive Plan from formula-based issuance limits to fixe...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
1st Source Chair Undergoes Treatment, Affirms Business Stability
Neutral
Feb 23, 2026
On February 23, 2026, Executive Chairman Christopher J. Murphy III informed shareholders that he is undergoing treatment for recurring bladder cancer and will work remotely and remain out of public contact for at least the next nine weeks. Murphy ...
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.