Sturgis Bancorp (STBI) AI Stock Analysis

• Market Cap: $56.21M
• Dividend Yield: 3.27%
• Average Volume (3M): 920.00
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.11
• Revenue Growth: 7.52%
• EPS Growth: 1332.55%
• Country: US
• Employees: 118
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 2,444,000
• 10 Day Avg. Volume: 1,115
• 30 Day Avg. Volume: 920
• PEG Ratio: -0.26
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.94
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 2.07
• Enterprise Value/Ebitda: 10.14
• 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: 72 Outperform
• Price Target: $23.50 ▲(18.81% Upside)
• Action: Upgraded Date: 10/22/25
• Date: Action: Upgraded 10/22/25

Sturgis Bancorp's stock is supported by strong valuation metrics, with a low P/E ratio and a solid dividend yield. Technical analysis indicates positive momentum, although caution is advised as the RSI approaches overbought levels. Financial performance is stable but requires attention to debt management and ROE trends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market presence and effective customer engagement, supporting long-term business sustainability.

Community Focus

A strong community focus helps build customer loyalty and trust, creating a stable revenue base and competitive advantage in local markets.

Cash Generation

Good cash generation relative to profits ensures liquidity and financial flexibility, supporting ongoing operations and potential growth investments.

Negative Factors

Increasing Debt Levels

Rising debt levels can strain financial resources and limit strategic options, posing risks to long-term financial health if not managed properly.

Declining ROE

A declining ROE suggests challenges in efficiently generating returns from equity, potentially impacting investor confidence and future capital raising.

Inconsistent Free Cash Flow

Fluctuating free cash flow can hinder strategic investments and operational stability, affecting long-term growth prospects and financial resilience.

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 generates revenue primarily through interest income from loans and fees associated with its banking services. The company earns interest on loans provided to individuals and businesses, which constitutes a significant portion of its income. Additionally, Sturgis Bancorp collects fees for services such as account maintenance, ATM transactions, and wealth management services. The bank's mortgage lending segment also contributes to its revenue, particularly through origination fees and interest from mortgage loans. Furthermore, Sturgis Bancorp may engage in partnerships with other financial institutions or service providers to enhance its product offerings, which can lead to increased revenue opportunities. Overall, the company's earnings are influenced by factors such as the interest rate environment, loan demand, and overall economic conditions in its operating regions.

Sturgis Bancorp Financial Statement Overview

Summary

Sturgis Bancorp demonstrates solid revenue growth and a stable net profit margin. However, concerns exist with declining ROE and increasing debt levels, which could impact future profitability and financial flexibility. Cash flow management appears adequate, though inconsistent free cash flow growth raises concerns about capital expenditure impacts.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.66M	56.11M	49.03M	35.38M	32.88M	30.33M
Gross Profit	38.79M	32.80M	35.49M	30.89M	27.69M	23.85M
EBITDA	7.94M	3.16M	9.07M	9.58M	9.96M	8.32M
Net Income	6.60M	2.83M	6.02M	6.62M	6.34M	6.01M
Balance Sheet
Total Assets	985.00M	956.39M	919.47M	864.80M	751.74M	643.61M
Cash, Cash Equivalents and Short-Term Investments	115.53M	97.87M	92.67M	78.14M	123.15M	142.16M
Total Debt	30.64M	76.02M	54.84M	85.75M	103.67M	76.10M
Total Liabilities	926.46M	900.98M	863.70M	812.26M	699.30M	596.49M
Stockholders Equity	58.55M	55.41M	55.77M	52.55M	52.44M	47.11M
Cash Flow
Free Cash Flow	0.00	6.55M	7.81M	6.78M	10.41M	-1.48M
Operating Cash Flow	0.00	7.62M	11.05M	12.04M	12.63M	1.71M
Investing Cash Flow	0.00	-61.38M	-32.99M	-152.45M	-143.38M	-116.77M
Financing Cash Flow	0.00	34.55M	46.97M	115.87M	102.43M	159.71M

Sturgis Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 19.78 is below the 20-day moving average (MA) of 22.34, below the 50-day MA of 21.62, and above the 200-day MA of 19.51, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 64.24 is Neutral, neither overbought nor oversold. The STOCH value of 83.38 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
HFBL	78 Outperform	$58.46M	11.21	8.21%	3.21%	0.32%	37.93%
STBI	72 Outperform	$56.21M	6.67	12.69%	3.27%	7.52%	1332.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRV	66 Neutral	$62.78M	11.19	4.54%	3.87%	6.89%	―
CLST	65 Neutral	$67.88M	29.31	2.72%	―	76.66%	―
TCBS	55 Neutral	$48.68M	19.64	4.74%	1.10%	12.12%	―