1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: 2.41%
• Average Volume (3M): 76.16K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.75
• Revenue Growth: 5.09%
• EPS Growth: 15.78%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.71
• Shares Outstanding: 24,434,704
• 10 Day Avg. Volume: 64,476
• 30 Day Avg. Volume: 76,156
• 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: 1.08
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: $72.67
• Price Target Upside: 15.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 6.48
• Revenue Forecast (FY): $436.09M

• Rating: 70 Outperform
• Price Target: $66.00 ▲(4.65% Upside)

1st Source's strong financial performance is the most significant factor, supported by consistent revenue growth and profitability. The technical analysis indicates a bearish trend, which slightly offsets the financial strengths. The valuation suggests the stock may be undervalued, providing potential upside. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Profitability

High profitability margins suggest efficient operations and strong pricing power, enhancing the company's ability to reinvest in growth.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial management, providing flexibility for future investments and growth opportunities.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.

Gross Profit Margin Pressure

Decreasing gross profit margins suggest rising costs or pricing pressures, potentially impacting future profitability and competitiveness.

Equity Ratio Decrease

A decreasing equity ratio may indicate increased reliance on debt financing, which could affect financial stability if not managed carefully.

1St Source Business Overview & Revenue Model

Company Description

1st Source Corporation is a financial services holding company based in the United States, primarily engaged in providing a range of banking and financial services through its wholly-owned subsidiary, 1st Source Bank. The company operates in the commercial banking sector, offering services such as personal and business banking, loans, investment management, and trust services. With a focus on serving individuals and small to mid-sized businesses, 1st Source is known for its community-oriented approach and commitment to customer service.

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 services. Additionally, 1st Source earns non-interest income through various fees for services such as account maintenance, wire transfers, and investment management. The bank also participates in wealth management and trust services, providing advisory services that contribute to its earnings. Strategic partnerships with local businesses and organizations enhance its customer base, while a strong focus on community engagement helps to drive customer loyalty and retention.

1St Source Financial Statement Overview

Summary

1st Source exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is well-managed with low leverage, and cash flow generation is solid despite recent declines in free cash flow growth. Continued focus on cost management and cash flow optimization will be key to sustaining financial performance.

Income Statement

1st Source has demonstrated consistent revenue growth with a TTM revenue growth rate of 21.9%. The company maintains strong profitability with a net profit margin of 26.2% and an EBIT margin of 33.5% in the TTM. However, the gross profit margin has decreased over time, indicating potential cost pressures.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.14 in the TTM, indicating prudent financial leverage. Return on equity is solid at 12.7%, reflecting efficient use of equity. However, the equity ratio has decreased slightly, suggesting a need to monitor asset financing.

Cash Flow

1st Source's cash flow performance is mixed, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is robust at 145.4%, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, suggesting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	591.11M	570.32M	507.53M	385.08M	354.86M	366.92M
Gross Profit	407.12M	374.66M	363.40M	341.49M	341.03M	293.71M
EBITDA	202.32M	183.42M	177.14M	175.87M	178.88M	137.42M
Net Income	148.58M	132.62M	124.93M	120.51M	118.53M	81.44M
Balance Sheet
Total Assets	9.06B	8.93B	8.73B	8.34B	8.10B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.02B	1.70B	1.86B	1.92B	1.27B
Total Debt	174.57M	325.05M	397.39M	302.94M	309.44M	270.91M
Total Liabilities	7.77B	7.75B	7.66B	7.42B	7.13B	6.39B
Stockholders Equity	1.24B	1.11B	989.57M	864.07M	916.25M	886.85M
Cash Flow
Free Cash Flow	194.70M	181.49M	181.96M	173.15M	163.88M	151.64M
Operating Cash Flow	201.24M	194.07M	187.94M	175.53M	166.76M	154.49M
Investing Cash Flow	-295.68M	-276.61M	-358.29M	-784.87M	-598.56M	-582.66M
Financing Cash Flow	139.34M	77.91M	177.22M	206.95M	713.94M	587.85M

1St Source Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 63.07 is above the 20-day moving average (MA) of 60.90, above the 50-day MA of 60.52, and above the 200-day MA of 60.56, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 82.60 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
STBA	79 Outperform	$1.43B	10.74	9.35%	3.49%	-1.48%	-1.58%
STEL	71 Outperform	$1.51B	14.81	6.38%	1.86%	-4.40%	-8.80%
SRCE	70 Outperform	$1.54B	10.34	12.65%	2.41%	5.09%	15.78%
GABC	68 Neutral	$1.47B	13.68	10.75%	2.90%	30.45%	3.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MBIN	63 Neutral	$1.44B	7.24	11.84%	1.25%	-2.45%	-28.20%
CLBK	53 Neutral	$1.57B	103.10	1.34%	―	-3.60%	-8.63%

1St Source Corporate Events

1st Source Expands Renewable Energy Financing Division

1st Source Corporation has launched instant payment systems, Real Time Payments (RTP) and FedNow, in 2023, facilitating over $418 million in transactions and more than 345,000 total transactions. The company continues to expand its renewable energy financing division, with over $603 million in loans and leases outstanding and $184 million invested in tax equity partnerships, contributing to significant environmental impact by reducing carbon emissions.

The most recent analyst rating on (SRCE) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on 1St Source stock, see the SRCE Stock Forecast page.

1st Source Announces EVP and CRO Retirement

On October 22, 2025, 1st Source Corporation and 1st Source Bank announced the upcoming retirement of their Executive Vice President and Chief Risk Officer, John B. Griffith, effective December 31, 2025. This leadership change could have implications for the company’s risk management strategies and overall operations as they transition to new leadership in this critical role.

The most recent analyst rating on (SRCE) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on 1St Source stock, see the SRCE Stock Forecast page.

1st Source Corporation Reports Record Earnings Growth

1st Source Corporation, a financial institution headquartered in South Bend, Indiana, operates primarily in the banking sector, offering a range of consumer and commercial banking services with a focus on personalized service and specialized financing solutions. The company recently reported record third-quarter net income of $42.30 million, marking a 13.34% increase from the previous quarter and a 21.06% rise from the same period last year. This growth was driven by an increase in net interest income and a decrease in credit loss provisions, despite some strategic repositioning losses in their investment portfolio. Key financial metrics showed improvement, with a return on average assets of 1.86% and a return on average common shareholders’ equity of 13.76%. The company also announced a cash dividend increase to $0.40 per share, reflecting an 11.11% rise from the previous year. Looking ahead, 1st Source Corporation’s management remains optimistic, highlighting a resilient balance sheet and strategic leadership transitions aimed at sustaining long-term growth and shareholder value.