Southern Banc Company (SRNN) AI Stock Analysis

• Market Cap: $9.02M
• Dividend Yield: N/A
• Average Volume (3M): 51.00
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.07
• 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: -1.83
• Enterprise Value/Revenue: -1.36
• Enterprise Value/Gross Profit: -1.75
• Enterprise Value/Ebitda: -13.74
• 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 of 0.014 signals minimal leverage and low financial risk. This durable capital strength increases resilience to credit losses, supports steady lending capacity, and allows management to fund growth or absorb shocks without frequent external financing.

Consistent Revenue Growth

An 11.9% recent revenue increase indicates expanding loan balances, fees, or market share in core regions. Durable top-line growth supports reinvestment in branches or technology, underpins scale economics, and provides a buffer against medium-term margin volatility.

Strong Cash Conversion

A near-100% free cash flow to net income ratio shows efficient cash conversion, supporting internal funding for lending, operations, and capital needs. This enhances liquidity flexibility and reduces reliance on external funding over the medium term.

Negative Factors

Declining Profit Margins

Net margin compressing from 15.11% to 7.54% materially reduces retained earnings and economic returns. Persistent margin pressure limits capacity to rebuild capital, weakens pricing power, and raises vulnerability to interest-rate or cost shocks over coming quarters.

Weaker Operating Cash Flow

A meaningful drop in operating cash flow and its ratio to net income weakens internal funding for loans and operations. Reduced OCF can force greater reliance on deposits or external financing, constraining loan growth and strategic spending over the medium term.

Falling Return on Equity

ROE halving to 5.48% indicates reduced profitability and capital efficiency. Persistently low ROE makes equity funding more costly, lowers shareholder returns, and suggests structural issues in margins or asset mix that must be addressed to restore long-term value creation.

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 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: Negative
• RSI: Negative
• STOCH: Negative

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 10.90, below the 50-day MA of 10.56, and below the 200-day MA of 10.82, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 89.08 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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	$9.02M	9.31	5.87%	―	10.26%	-34.42%
KFFB	54 Neutral	$40.24M	47.71	1.11%	―	15.56%	―
GLBZ	44 Neutral	$13.14M	-451.49	0.09%	―	5.76%	-72.73%
SHFS	43 Neutral	$2.62M	-0.05	-229.75%	―	-42.15%	-1001.66%