Southern Banc Company (SRNN) AI Stock Analysis

• Market Cap: $9.37M
• Dividend Yield: N/A
• Average Volume (3M): 51.00
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.06
• Revenue Growth: 10.26%
• EPS Growth: -34.42%
• Country: US
• Employees: 31
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.49
• Shares Outstanding: 807,000
• 10 Day Avg. Volume: 26
• 30 Day Avg. Volume: 51
• PEG Ratio: -0.22
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 5.07
• Enterprise Value/Market Cap: -1.94
• Enterprise Value/Revenue: -1.50
• Enterprise Value/Gross Profit: -1.93
• Enterprise Value/Ebitda: -15.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $12.50 ▲(20.89% Upside)
• Action: Downgraded Date: 12/19/25
• Date: Action: Downgraded 12/19/25

Southern Banc Company shows a strong valuation with a low P/E ratio, indicating potential undervaluation. However, financial performance is mixed with solid revenue growth but declining profit margins and cash flow metrics. Technical indicators suggest neutral momentum, lacking strong directional trends.

Positive Factors

Low Leverage / Strong Capital

A debt-to-equity ratio of ~0.014 signals minimal leverage and a strong capital base, reducing solvency and regulatory risk. This durable balance-sheet strength gives the bank flexibility to fund lending, absorb credit shocks, and pursue strategic initiatives without relying on volatile external financing.

Consistent Revenue Growth

Near-double-digit revenue growth demonstrates an expanding business footprint or improving core loan/deposit activity. Sustained top-line growth supports long-term earnings potential, provides scope to rebuild margins, and underpins organic capital generation even if profit conversion lags in the short term.

Strong Cash Conversion Ratio

A free-cash-flow to net-income ratio near 98% indicates the company converts reported earnings into usable cash at a high rate. Durable cash conversion supports reinvestment, reserve building, and discretionary capital allocation, strengthening medium-term financial flexibility despite cyclical variability.

Negative Factors

Declining Net Profit Margins

A drop in net margin from ~15% to ~7.5% materially reduces earnings power per revenue dollar and signals structural pressure on profitability. Over months this compresses retained earnings, limits buffer for credit losses, and reduces capacity to fund growth or capital returns without operational or pricing changes.

Falling Return on Equity

ROE halving to roughly 5.5% implies the bank is generating much lower returns on shareholder capital. Persistently low ROE hampers value creation, makes capital accumulation slower, and constrains strategic investments; this structural decline can persist absent margin recovery or efficiency gains.

Weaker Operating Cash Flow Trends

A decline in operating cash flow versus prior year reduces internal funding available for lending, reserves, and capital expenditures. Over a multi-month horizon this may increase reliance on deposit or external funding, limit balance-sheet growth, and pressure liquidity management if trends continue.

Southern Banc Company Business Overview & Revenue Model

Company Description

Southern Banc Company (SRNN) is a financial institution that provides a wide range of banking services primarily in the southeastern region of the United States. The company operates in various sectors including retail banking, commercial banking, and mortgage services. Its core products and services include personal and business checking accounts, savings accounts, loans (including mortgages and commercial loans), and investment services, catering to both individual and business clients.

Southern Banc Company Financial Statement Overview

Summary

Southern Banc Company demonstrates solid revenue growth and a strong balance sheet with low leverage. However, declining profit margins and cash flow metrics indicate potential challenges in maintaining profitability and efficient cash management.

Income Statement

Southern Banc Company has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 11.9% in the most recent year. However, the gross profit margin has slightly decreased from 81.17% to 77.74%, and the net profit margin has also declined from 15.11% to 7.54%. This indicates some pressure on profitability. The EBIT and EBITDA margins have similarly decreased, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.014, indicating minimal leverage and financial risk. The return on equity has decreased from 11.07% to 5.48%, reflecting reduced profitability. The equity ratio remains healthy, showing a strong capital base relative to assets.

Cash Flow

Operating cash flow and free cash flow have decreased compared to the previous year, with a significant drop in the operating cash flow to net income ratio. The free cash flow to net income ratio remains high at 97.60%, indicating efficient cash generation relative to net income. However, the decline in cash flow metrics suggests potential challenges in cash management.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	12.13M	10.60M	9.75M	7.56M	5.55M
Gross Profit	9.43M	8.60M	8.83M	7.09M	4.77M
EBITDA	1.30M	2.23M	3.40M	2.43M	729.46K
Net Income	915.44K	1.60M	2.47M	1.74M	478.00K
Balance Sheet
Total Assets	124.04M	113.05M	108.50M	115.28M	112.42M
Cash, Cash Equivalents and Short-Term Investments	25.07M	12.50M	49.07M	55.24M	9.01M
Total Debt	240.69K	306.25K	0.00	2.00M	0.00
Total Liabilities	107.32M	98.59M	96.37M	104.68M	99.97M
Stockholders Equity	16.72M	14.47M	12.12M	10.60M	12.45M
Cash Flow
Free Cash Flow	1.75M	2.35M	1.94M	2.42M	4.58M
Operating Cash Flow	1.79M	2.54M	1.97M	2.56M	4.65M
Investing Cash Flow	1.72M	65.15K	4.86M	-8.75M	-24.50M
Financing Cash Flow	9.07M	1.28M	-8.12M	4.81M	5.50M

Southern Banc Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRNN, the sentiment is Positive. The current price of 10.34 is below the 20-day moving average (MA) of 11.58, below the 50-day MA of 11.03, and below the 200-day MA of 10.91, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRNN.

Southern Banc Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRNN	64 Neutral	$9.37M	5.16	5.47%	―	10.26%	-34.42%
KFFB	54 Neutral	$34.61M	30.97	1.71%	―	15.56%	―
GLBZ	44 Neutral	$13.72M	-427.49	0.09%	―	5.76%	-72.73%
SHFS	43 Neutral	$2.59M	424.54	-229.75%	―	-42.15%	-1001.66%