1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 2.35%
• Average Volume (3M): 93.93K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.69
• Revenue Growth: 12.26%
• EPS Growth: 7.48%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 5.42
• Shares Outstanding: 24,553,444
• 10 Day Avg. Volume: 86,758
• 30 Day Avg. Volume: 93,928
• PEG Ratio: 1.49
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.96
• Price to Cash Flow (P/CF): 11.10
• P/FCF Ratio: 5.60
• 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: $69.50
• Price Target Upside: 16.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

1st Source demonstrates robust financial performance, with consistent revenue growth and strong profitability margins. While technical analysis indicates positive momentum, valuation remains fair with a reasonable P/E ratio and a solid dividend yield. Noteworthy corporate events in renewable energy and digital payments further bolster the company's growth prospects. However, attention to high liabilities and cash flow management remains crucial for future stability.

1St Source Business Overview & Revenue Model

Company Description

1st Source Corporation (SRCE) is a financial services company headquartered in South Bend, Indiana. It operates primarily through its banking subsidiary, 1st Source Bank, and provides a range of services including personal banking, business banking, mortgage lending, and wealth management. The company serves individual clients, small businesses, and commercial entities, focusing on building lasting relationships and offering tailored financial solutions.

How the Company Makes Money

1st Source Corporation primarily makes money through interest income, which is generated from loans and advances to customers, including personal, commercial, and real estate loans. The bank also earns non-interest income from services such as wealth management, trust services, and insurance products. Additionally, the company benefits from fees associated with deposit accounts, transaction processing, and other banking services. Strategic partnerships and a strong focus on community banking contribute to its revenue by fostering client loyalty and expanding its customer base.

1St Source Financial Statement Overview

Summary

1st Source demonstrates consistent revenue growth and improved profitability margins. The balance sheet is robust with decreasing debt-to-equity ratios, though high liabilities warrant attention. Cash flow management appears effective, but recent investing activities have impacted free cash flow. Overall, the company is well-positioned in the banking industry, but maintaining control over leverage and cash flow is crucial.

Income Statement

1st Source has demonstrated consistent revenue growth over the years, with a notable increase in total revenue from $329.7 million in 2020 to $484.0 million in 2024. The gross profit margin remains strong at 100% due to the nature of the banking industry. The net profit margin improved slightly from 22.7% in 2020 to 27.4% in 2024. However, the lack of a reported EBITDA figure in 2024 limits a comprehensive analysis of operational profitability. Overall, the income statement reflects a healthy growth trajectory.

Balance Sheet

The balance sheet of 1st Source shows a strong equity position with stockholders' equity rising from $886.8 million in 2020 to $1.11 billion in 2024. The debt-to-equity ratio has decreased over the years, indicating an improving leverage position, standing at 0.16 in 2024. The equity ratio has remained relatively stable, reflecting a solid capital structure. However, the relatively high total liabilities compared to equity could pose potential risks if economic conditions worsen.

Cash Flow

1st Source's cash flow statement reveals fluctuating free cash flow, with a notable drop in free cash flow growth in 2024 due to significant investing cash outflows. The absence of operating cash flow data for 2024 limits a complete assessment of cash generation efficiency. Historically, the company has maintained positive operating cash flow, which is a positive indicator of cash management. The substantial financing cash flow suggests active financial management but also requires careful monitoring.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
484.02M	363.40M	354.73M	336.73M	329.71M
	Gross Profit
484.02M	363.40M	354.73M	336.73M	329.71M
	EBIT
470.04M	0.00	187.11M	154.86M	106.32M
	EBITDA
0.00	0.00	172.91M	167.36M	120.39M
	Net Income Common Stockholders
132.62M	124.93M	120.51M	118.53M	81.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.61B	106.39M	1.86B	1.92B	1.27B
	Total Assets
8.93B	8.73B	8.34B	8.10B	7.32B
	Total Debt
176.85M	341.58M	179.42M	135.31M	147.71M
	Net Debt
100.02M	264.11M	94.71M	80.89M	73.52M
	Total Liabilities
7.75B	7.66B	7.42B	7.13B	6.39B
	Stockholders Equity
1.11B	989.57M	864.07M	916.25M	886.85M
Cash Flow		Free Cash Flow
181.49M	181.96M	173.15M	163.88M	151.64M
	Operating Cash Flow
193.85M	187.94M	175.53M	166.76M	154.49M
	Investing Cash Flow
-276.61M	-358.29M	-784.87M	-598.56M	-582.66M
	Financing Cash Flow
77.91M	177.22M	206.95M	713.94M	587.85M

1St Source Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRCE, the sentiment is Negative. The current price of 59.45 is below the 20-day moving average (MA) of 64.64, below the 50-day MA of 61.43, and above the 200-day MA of 58.85, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRCE.

1St Source Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRCE	75 Outperform	$1.46B	11.17	12.51%	2.35%	12.26%	7.48%
MBIN	70 Outperform	$1.68B	6.14	16.25%	0.93%	23.69%	11.97%
FFBC	69 Neutral	$2.35B	10.61	9.72%	3.69%	9.95%	-11.02%
HWBK	65 Neutral	$180.96M	10.00	14.14%	2.83%	20.37%	1821.94%
CHCO	64 Neutral	$1.68B	14.79	16.49%	2.63%	11.10%	3.74%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
FBMS	56 Neutral	$1.03B	13.59	7.90%	3.01%	9.99%	1.88%

1St Source Corporate Events

1St Source Advances in Renewable Energy and Digital Payments

In the fourth quarter of 2024, 1st Source Corporation reported significant activity in their specialty finance and renewable energy divisions. The renewable energy division has financed projects that avoid 297,999 metric tons of carbon emissions annually, with over $487 million in loans and leases outstanding. The company also launched instant payment systems, RTP and FedNow, in 2023, handling over $216 million through these channels, marking a robust digital adoption in financial transactions.