1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 2.55%
• Average Volume (3M): 79.08K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.76
• Revenue Growth: 9.30%
• EPS Growth: 15.19%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 5.75
• Shares Outstanding: 24,562,910
• 10 Day Avg. Volume: 76,906
• 30 Day Avg. Volume: 79,080
• PEG Ratio: 2.84
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.57
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 2.77
• 1Y Price Target: $69.00
• Price Target Upside: 15.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ―

1st Source demonstrates strong financial health, a favorable valuation, and strategic advancements in renewable energy and digital payments. These strengths are slightly tempered by neutral technical indicators and careful monitoring of recent fluctuations in cash flow and revenue growth.

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 primarily makes money through interest income, which is generated from loans and advances to customers, including personal, commercial, and real estate loans. The bank also earns non-interest income from services such as wealth management, trust services, and insurance products. Additionally, the company benefits from fees associated with deposit accounts, transaction processing, and other banking services. Strategic partnerships and a strong focus on community banking contribute to its revenue by fostering client loyalty and expanding its customer base.

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, attention should be given to recent fluctuations in revenue growth and free cash flow.

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
441.66M	484.02M	363.40M	354.73M	336.73M	329.71M
	Gross Profit
466.95M	484.02M	363.40M	354.73M	336.73M	329.71M
	EBIT
334.05M	470.04M	0.00	160.47M	156.75M	109.76M
	EBITDA
97.44M	0.00	0.00	172.91M	167.36M	120.39M
	Net Income Common Stockholders
140.37M	132.62M	124.93M	120.53M	118.56M	81.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	1.61B	106.39M	1.86B	1.92B	1.27B
	Total Assets
8.96B	8.93B	8.73B	8.34B	8.10B	7.32B
	Total Debt
101.13M	252.70M	341.58M	161.51M	114.72M	127.35M
	Net Debt
13.31M	175.86M	264.11M	76.81M	60.30M	53.16M
	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: Negative
• Last Price: 59.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 59.66 is below the 20-day moving average (MA) of 61.09, above the 50-day MA of 59.09, and below the 200-day MA of 60.27, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRCE.

1St Source Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEL	76 Outperform	$1.38B	12.38	7.40%	2.08%	-0.58%	-3.02%
CUBI	74 Outperform	$1.59B	12.65	8.14%	―	-5.61%	-44.11%
SRCE	74 Outperform	$1.47B	10.38	12.84%	2.55%	9.30%	15.19%
NBHC	70 Outperform	$1.37B	12.46	8.68%	3.33%	1.63%	-16.82%
LKFN	68 Neutral	$1.51B	16.84	13.44%	3.39%	5.03%	-3.19%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
CLBK	48 Neutral	$1.46B	97.23	-0.15%	―	4.29%	-109.93%

1St Source Corporate Events

1St Source Advances in Renewable Energy and Digital Payments

In the fourth quarter of 2024, 1st Source Corporation reported significant activity in their specialty finance and renewable energy divisions. The renewable energy division has financed projects that avoid 297,999 metric tons of carbon emissions annually, with over $487 million in loans and leases outstanding. The company also launched instant payment systems, RTP and FedNow, in 2023, handling over $216 million through these channels, marking a robust digital adoption in financial transactions.