Southern Banc Company (SRNN) AI Stock Analysis

• Market Cap: $8.34M
• Dividend Yield: N/A
• Average Volume (3M): 51.00
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.08
• Revenue Growth: 10.26%
• EPS Growth: -34.42%
• Country: US
• Employees: 31
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.25
• 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: -2.17
• Enterprise Value/Revenue: -1.49
• Enterprise Value/Gross Profit: -1.92
• Enterprise Value/Ebitda: -15.02
• 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: $11.00 ▲(6.38% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and services, supporting long-term business expansion and market presence.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Cash Generation Efficiency

Efficient cash generation supports operational needs and strategic investments, ensuring the company can sustain growth and adapt to market changes.

Negative Factors

Declining Profit Margins

Declining profit margins suggest increased costs or pricing pressures, which could impact long-term profitability and competitive positioning.

Decreased Return on Equity

A decrease in return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and capital raising ability.

Cash Flow Challenges

Decreased cash flow metrics suggest challenges in cash management, which could constrain the company's ability to invest in growth initiatives and manage liabilities.

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.

How the Company Makes Money

Southern Banc Company generates revenue through several key streams. The primary source of income comes from interest earned on loans issued to customers, including personal loans, mortgages, and business loans. Additionally, the company earns fees from various banking services such as account maintenance fees, transaction fees, and service charges. Investment income from securities and other financial instruments also contributes to the company's earnings. Significant partnerships with local businesses and community organizations help expand its customer base and drive deposit growth, further enhancing its revenue potential.

Southern Banc Company Financial Statement Overview

Summary

Southern Banc Company exhibits robust financial performance with strong revenue growth and efficient cost management. The balance sheet is solid with low leverage, ensuring financial stability. Cash flow generation is stable, although there is potential for enhancing cash conversion from net income.

Income Statement

Southern Banc Company has demonstrated strong revenue growth over the years, with a significant increase in total revenue from 2020 to 2024. The gross profit margin is consistently high, reflecting efficient cost management. However, the net profit margin has seen fluctuations, with a recent decline in 2024. The EBIT and EBITDA margins show solid operational performance, although there is room for improvement in translating revenue growth into higher net income.

Balance Sheet

The company maintains a solid balance sheet with a healthy equity ratio, showcasing financial stability. The debt-to-equity ratio is low, indicating a conservative leverage approach which minimizes risk. Return on equity has been positive, driven by increasing net income over the years. The equity growth supports the company's capacity to handle liabilities effectively.

Cash Flow

Operating cash flow has shown consistent growth, supporting the company's operations sustainably. Free cash flow has increased, suggesting effective capital expenditure management. However, the operating cash flow to net income ratio indicates room for improvement in cash conversion efficiency. The free cash flow to net income ratio is strong, highlighting the company's ability to generate cash from its operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.13M	12.13M	10.60M	9.75M	7.56M	5.55M
Gross Profit	9.43M	9.43M	8.60M	8.83M	7.09M	4.77M
EBITDA	1.20M	1.30M	2.23M	3.40M	2.43M	729.46K
Net Income	915.00K	915.44K	1.60M	2.47M	1.74M	478.00K
Balance Sheet
Total Assets	124.04M	124.04M	113.05M	108.50M	115.28M	112.42M
Cash, Cash Equivalents and Short-Term Investments	25.07M	25.07M	12.50M	49.07M	55.24M	9.01M
Total Debt	240.69K	240.69K	306.25K	0.00	2.00M	0.00
Total Liabilities	107.32M	107.32M	98.59M	96.37M	104.68M	99.97M
Stockholders Equity	16.72M	16.72M	14.47M	12.12M	10.60M	12.45M
Cash Flow
Free Cash Flow	0.00	1.75M	2.35M	1.94M	2.42M	4.58M
Operating Cash Flow	0.00	1.79M	2.54M	1.97M	2.56M	4.65M
Investing Cash Flow	0.00	1.72M	65.15K	4.86M	-8.75M	-24.50M
Financing Cash Flow	0.00	9.07M	1.28M	-8.12M	4.81M	5.50M

Southern Banc Company Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRNN, the sentiment is Neutral. The current price of 10.34 is above the 20-day moving average (MA) of 10.31, above the 50-day MA of 10.33, and below the 200-day MA of 10.91, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$8.34M	8.55	5.87%	―	10.26%	-34.42%
KFFB	52 Neutral	$35.18M	65.22	1.11%	―	15.56%	―
GLBZ	49 Neutral	$10.83M	412.22	0.09%	―	5.76%	-72.73%
SHFS	46 Neutral	$4.02M	-0.07	-229.75%	―	-42.15%	-1001.66%