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German American Bancorp (GABC)
:GABC

German American Bancorp (GABC) AI Stock Analysis

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German American Bancorp

(NASDAQ:GABC)

71Outperform
German American Bancorp presents a mixed picture. Its strong balance sheet and strategic corporate moves are notable positives, enhancing its stability and growth prospects. However, operational challenges and liquidity concerns due to declining EBIT margin and cash flow metrics temper the outlook. While technical indicators suggest caution, the valuation remains reasonable with an attractive dividend yield.

German American Bancorp (GABC) vs. S&P 500 (SPY)

German American Bancorp Business Overview & Revenue Model

Company DescriptionGerman American Bancorp, Inc. (GABC) is a bank holding company based in Jasper, Indiana. It operates through its subsidiary, German American Bank, offering a range of financial services primarily in the southern Indiana and Kentucky regions. The company provides comprehensive banking services including personal and business banking, wealth management, trust and investment services, as well as insurance services. GABC focuses on maintaining strong customer relationships and delivering personalized financial solutions to meet the needs of individuals, businesses, and communities.
How the Company Makes MoneyGerman 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
75
Positive
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
80
Positive
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
68
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
214.93M250.69M259.72M220.29M209.72M
Gross Profit
291.04M231.12M236.28M200.65M193.49M
EBIT
5.42M109.32M117.52M102.78M75.04M
EBITDA
0.00113.06M109.29M111.56M84.47M
Net Income Common Stockholders
83.81M85.89M81.83M84.14M62.21M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.59B115.33M119.58M397.63M346.99M
Total Assets
6.30B6.15B6.16B5.61B4.98B
Total Debt
153.27M127.97M228.81M152.18M194.53M
Net Debt
83.52M48.66M151.63M105.01M136.56M
Total Liabilities
5.58B5.49B5.60B4.94B4.35B
Stockholders Equity
715.07M663.56M558.39M668.46M624.71M
Cash FlowFree Cash Flow
90.72M101.49M102.18M96.16M85.35M
Operating Cash Flow
95.76M107.23M110.04M100.84M92.42M
Investing Cash Flow
-82.40M27.25M-24.18M-640.30M-346.08M
Financing Cash Flow
60.10M-136.54M-363.67M590.60M495.52M

German American Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.53
Price Trends
50DMA
37.23
Positive
100DMA
38.34
Positive
200DMA
39.22
Positive
Market Momentum
MACD
0.83
Negative
RSI
65.61
Neutral
STOCH
77.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GABC, the sentiment is Positive. The current price of 39.53 is above the 20-day moving average (MA) of 37.94, above the 50-day MA of 37.23, and above the 200-day MA of 39.22, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GABC.

German American Bancorp Risk Analysis

German American Bancorp disclosed 29 risk factors in its most recent earnings report. German American Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

German American Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.42B12.667.40%1.96%-0.58%-3.02%
74
Outperform
$1.72B13.708.14%-5.61%-44.11%
74
Outperform
$1.53B10.8412.84%2.28%9.30%15.19%
71
Outperform
$1.49B15.908.85%2.78%16.95%-12.55%
70
Outperform
$1.47B11.079.84%3.49%1.26%
70
Outperform
$1.46B13.208.68%2.98%1.63%-16.82%
64
Neutral
$12.82B9.837.68%17000.34%12.38%-5.56%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GABC
German American Bancorp
39.79
7.42
22.92%
SRCE
1St Source
62.40
11.98
23.76%
STBA
S&T Bancorp
38.28
6.68
21.14%
CUBI
Customers Bancorp
54.51
6.77
14.18%
NBHC
National Bank Holdings
38.15
2.02
5.59%
STEL
Stellar Bancorp
27.68
5.04
22.26%

German American Bancorp Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
German American Bancorp Launches 2025 Management Incentive Plan
Positive
Mar 21, 2025

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.

Business Operations and Strategy
German American Bancorp Executives Join KBW Winter Conference
Neutral
Feb 12, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.