Sturgis Bancorp (STBI) AI Stock Analysis

• Market Cap: $45.21M
• Dividend Yield: 3.54%
• Average Volume (3M): 1.68K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.14
• Revenue Growth: 6.74%
• EPS Growth: 208.50%
• Country: US
• Employees: 118
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 2,444,000
• 10 Day Avg. Volume: 4,638
• 30 Day Avg. Volume: 1,682
• PEG Ratio: 0.05
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: 0.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

Sturgis Bancorp's strong revenue growth and stable net profit margin are offset by concerns about increasing debt and declining ROE. The stock's technical indicators suggest a neutral trend, with a potential pullback due to overbought conditions. Valuation remains reasonable with a good dividend yield, making it an attractive option for income-focused investors. Overall, the stock scores moderately well but requires attention to financial and operational aspects.

Sturgis Bancorp Business Overview & Revenue Model

Company Description

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

How the Company Makes Money

Sturgis Bancorp makes money primarily through interest income generated from its lending activities, which include residential mortgages, consumer loans, and commercial loans. The bank earns interest on the loans it provides to its customers, which constitutes a significant portion of its revenue. Additionally, Sturgis Bancorp generates non-interest income from various fees associated with its banking services, such as service charges on deposit accounts, loan servicing fees, and transaction fees. The company may also earn income from investments in securities. Its revenue model is supported by maintaining a competitive interest rate spread and prudent risk management practices. Partnerships with local businesses and community engagement further enhance its financial performance by fostering customer loyalty and expanding its customer base.

Sturgis Bancorp Financial Statement Overview

Summary

Sturgis Bancorp demonstrates solid revenue growth and a stable net profit margin. However, concerns with declining ROE and increasing debt levels could impact future profitability and financial flexibility. Cash flow management is adequate, though inconsistent free cash flow growth raises concerns about capital expenditure impacts. Overall, the company exhibits a stable financial position with areas needing attention.

Income Statement

Sturgis Bancorp has shown steady revenue growth over the years, with a slight dip in gross profit in the latest year. The gross profit margin decreased, but the net profit margin remained stable, indicating effective cost management. However, the EBIT and EBITDA margins have decreased over the year, suggesting increased operational costs or inefficiencies.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, but it has increased over the years, which might pose a risk if not managed well. The equity ratio indicates a moderate level of equity financing. Return on equity shows a declining trend, indicating potential issues in generating returns from equity investments.

Cash Flow

Free cash flow growth has been inconsistent, with fluctuations observed due to variable capital expenditures. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to reported profits. However, the free cash flow to net income ratio suggests that free cash flow is not consistently translating into net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.11M	36.14M	30.89M	28.77M	26.75M
Gross Profit	32.80M	49.45M	30.89M	28.77M	26.75M
EBITDA	2.79M	8.50M	9.58M	9.96M	8.32M
Net Income	2.83M	6.02M	6.62M	6.34M	6.01M
Balance Sheet
Total Assets	956.39M	919.47M	864.80M	751.74M	643.61M
Cash, Cash Equivalents and Short-Term Investments	97.87M	8.56M	78.14M	123.15M	142.16M
Total Debt	76.02M	54.84M	85.75M	103.67M	76.10M
Total Liabilities	900.98M	863.70M	812.26M	699.30M	596.49M
Stockholders Equity	55.41M	55.77M	52.55M	52.44M	47.11M
Cash Flow
Free Cash Flow	6.55M	7.81M	6.78M	10.41M	-1.48M
Operating Cash Flow	7.62M	11.05M	12.04M	12.63M	1.71M
Investing Cash Flow	-61.38M	-32.99M	-152.45M	-143.38M	-116.77M
Financing Cash Flow	34.55M	46.97M	115.87M	102.43M	159.71M

Sturgis Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.50
• 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 STBI, the sentiment is Positive. The current price of 18.5 is above the 20-day moving average (MA) of 18.47, above the 50-day MA of 18.19, and above the 200-day MA of 17.76, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 74.52 is Negative, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STBI.

Sturgis Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Outperform	€15.70B	12.04	14.88%	5.70%	7.04%	-0.41%
ASRV	69 Neutral	$46.91M	12.68	3.26%	4.29%	6.06%	―
HFBL	69 Neutral	$42.08M	10.69	7.20%	3.86%	-2.93%	7.89%
STBI	67 Neutral	$45.21M	6.06	11.78%	3.54%	6.74%	208.50%
TCBS	54 Neutral	$48.68M	23.89	3.88%	1.00%	19.16%	―
PBBK	―	$46.20M	19.37	9.44%	―	―	―
CLST	57 Neutral	$52.22M	22.25	2.69%	―	107.33%	―