German American Bancorp (GABC) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 3.15%
• Average Volume (3M): 139.59K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.71
• Revenue Growth: 11.44%
• EPS Growth: -2.75%
• Country: US
• Employees: 1,020
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): 2.83
• Shares Outstanding: 37,426,100
• 10 Day Avg. Volume: 112,390
• 30 Day Avg. Volume: 139,591
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.78
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 7.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.33
• Price Target Upside: 38.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

German American Bancorp's strong balance sheet and strategic acquisitions are significant positives, contributing to a stable financial structure and future growth potential. However, challenges with declining EBIT margins and cash flow, coupled with weak technical indicators, weigh on the overall score. The stock's reasonable valuation and positive corporate events help balance these concerns, resulting in an overall moderate score.

German American Bancorp Business Overview & Revenue Model

Company Description

German American Bancorp, Inc. operates as a bank holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. As of December 31, 2021, the company operated 77 banking offices in 19 contiguous southern Indiana counties; and 14 counties in Kentucky. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

How the Company Makes Money

German American Bancorp generates revenue primarily through interest income from its lending activities, which include commercial, agricultural, residential mortgage, and consumer loans. The company also earns non-interest income from service charges on deposit accounts, fees for financial services, wealth management and investment advisory services, as well as insurance commissions. Additionally, GABC benefits from its strategic geographic positioning in growing markets, which enhances its ability to attract deposits and loan customers. The company's revenue is further supported by its emphasis on cross-selling products and services to existing customers, as well as maintaining efficient operations to maximize profitability.

German American Bancorp Financial Statement Overview

Summary

German American Bancorp shows a strong balance sheet with zero debt and increasing equity, which is a positive indicator for stability. However, the significant decline in EBIT margin and cash flow metrics raises concerns about operational efficiency and liquidity. Overall, the company demonstrates solid revenue growth but faces profitability challenges and cash flow constraints.

Income Statement

The company has demonstrated consistent revenue growth over time, with a notable increase from $250.7M in 2023 to $291M in 2024. However, the net profit margin decreased slightly from 34.3% in 2023 to 28.8% in 2024, indicating pressure on profitability. The EBIT margin dropped significantly from 43.6% in 2023 to 1.9% in 2024, suggesting operational challenges.

Balance Sheet

The balance sheet is strong with no total debt by 2024, indicating a low leverage profile. Equity has grown from $663.6M in 2023 to $715.1M in 2024, reflecting solid shareholder equity growth. The equity ratio improved to 11.4% in 2024, from 10.8% in 2023, indicating a stable financial structure.

Cash Flow

There is a significant decrease in operating cash flow from $107.2M in 2023 to $2.0M in 2024, affecting the cash flow position. Free cash flow also decreased, suggesting challenges in maintaining cash reserves. The drop in cash flow metrics indicates potential liquidity issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
214.93M	250.69M	259.72M	220.29M	209.72M
	Gross Profit
291.04M	231.12M	236.28M	200.65M	193.49M
	EBIT
5.42M	109.32M	117.52M	102.78M	75.04M
	EBITDA
0.00	113.06M	109.29M	111.56M	84.47M
	Net Income Common Stockholders
83.81M	85.89M	81.83M	84.14M	62.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	115.33M	119.58M	397.63M	346.99M
	Total Assets
6.30B	6.15B	6.16B	5.61B	4.98B
	Total Debt
153.27M	127.97M	228.81M	152.18M	194.53M
	Net Debt
83.52M	48.66M	151.63M	105.01M	136.56M
	Total Liabilities
5.58B	5.49B	5.60B	4.94B	4.35B
	Stockholders Equity
715.07M	663.56M	558.39M	668.46M	624.71M
Cash Flow		Free Cash Flow
90.72M	101.49M	102.18M	96.16M	85.35M
	Operating Cash Flow
95.76M	107.23M	110.04M	100.84M	92.42M
	Investing Cash Flow
-82.40M	27.25M	-24.18M	-640.30M	-346.08M
	Financing Cash Flow
60.10M	-136.54M	-363.67M	590.60M	495.52M

German American Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GABC, the sentiment is Negative. The current price of 34.96 is below the 20-day moving average (MA) of 37.84, below the 50-day MA of 39.19, and below the 200-day MA of 39.34, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GABC.

German American Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRCE	75 Outperform	$1.34B	10.09	12.51%	2.60%	12.26%	7.48%
HFWA	71 Outperform	$730.46M	17.34	5.04%	4.33%	4.64%	-28.68%
CAC	70 Neutral	$614.89M	10.07	10.33%	4.61%	14.18%	22.19%
GABC	68 Neutral	$1.31B	12.37	12.16%	3.15%	11.44%	-2.75%
FMBH	65 Neutral	$756.16M	9.55	9.62%	3.01%	17.70%	3.88%
LKFN	64 Neutral	$1.40B	14.83	14.02%	3.61%	9.38%	-0.59%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%

German American Bancorp Corporate Events

German American Bancorp Launches 2025 Management Incentive Plan

On March 19, 2025, German American Bancorp implemented balanced scorecards under its 2025 Management Incentive Plan for its executive officers. These scorecards are designed to align executive compensation with corporate and individual performance goals, offering both short-term and long-term incentive awards based on achieving specific financial and operational targets. The plan aims to motivate executives by tying their compensation to the company’s performance, with potential awards contingent on meeting or exceeding set benchmarks. This initiative reflects the company’s strategy to drive growth and maintain competitive positioning in the banking sector.

German American Bancorp Executives Join KBW Winter Conference

German American Bancorp announced that its executives, D. Neil Dauby and Bradley M. Rust, will participate in the KBW Winter Financial Services Conference on February 13-14, 2025. This engagement highlights the company’s strategy to strengthen investor relations and enhance its market presence, potentially impacting its industry positioning and stakeholder interests.

German American Bancorp Completes Strategic Heartland BancCorp Acquisition

On February 1, 2025, German American Bancorp completed its acquisition of Heartland BancCorp, merging Heartland Bank into German American Bank. This strategic move is expected to enhance German American’s footprint in the Midwest, particularly in Columbus and Cincinnati, Ohio, offering expanded services and maintaining a community-focused banking model. The merger is anticipated to be accretive to earnings, while maintaining strong capital ratios, and it integrates Heartland’s leadership into German American’s board and management committees.