Want to see SRCE full AI Analyst Report?
Top Page
1St Source
(NASDAQ:SRCE)
Select Model
Select Model
Rating:79Outperform
Price Target:
$100.00
â–²(16.20% Upside)
Action:Reiterated
Date:10/23/26
SRCE scores well primarily on strong financial performance (healthy profitability, improving scale, and conservative reported leverage), with the main risk being volatile cash flow conversion and some margin compression versus prior peak years. Technicals add a moderately positive backdrop as the stock trades above key moving averages with neutral-to-positive momentum. Valuation is supportive given a moderate P/E and modest dividend yield, while recent corporate updates are positive but secondary to the fundamentals.
Positive Factors
Strong profitability and earnings growth
High profitability and rising net income indicate that 1st Source is converting its banking franchise into substantial earnings. This provides internal capital to support lending, technology investment, and shareholder returns while strengthening resilience over the next several quarters.
Negative Factors
Margin compression
Lower margins than in 2021–2022 show that current profitability is less robust than at its peak. If this pressure persists, revenue growth may translate less efficiently into earnings, limiting the pace of capital accumulation and reducing operating flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and earnings growth
High profitability and rising net income indicate that 1st Source is converting its banking franchise into substantial earnings. This provides internal capital to support lending, technology investment, and shareholder returns while strengthening resilience over the next several quarters.
Read all positive factors
1St Source (SRCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.12B
Dividend Yield1.91%
Average Volume (3M)115.39K
Price to Earnings (P/E)12.0
Beta (1Y)0.61
Revenue Growth3.90%
EPS Growth20.76%
CountryUS
Employees1,190
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)7.30
Shares Outstanding24,084,919
10 Day Avg. Volume119,036
30 Day Avg. Volume115,385
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.20
Price to Sales (P/S)2.54
P/FCF Ratio7.15
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.79
Enterprise Value/Gross Profit5.14
Enterprise Value/Ebitda8.34
Forecast
1Y Price Target
$98.50Price Target Upside14.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)7.6
Revenue Forecast (FY)$468.82M
1St Source Business Overview & Revenue Model
Company Description
As the parent company of 1st Source Bank, 1st Source Corporation delivers a comprehensive suite of financial solutions, encompassing commercial and retail banking, wealth management, and insurance offerings, to both individual and corporate custom...
How the Company Makes Money
1st Source primarily makes money through traditional banking activities. A major earnings driver is net interest income: the bank collects interest and fees on loans (such as commercial loans and consumer loans) and on its securities/investment po...
1St Source Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 613.76M | 600.00M | 570.32M | 507.53M | 385.08M | 354.86M |
| Gross Profit | 452.70M | 421.93M | 374.66M | 363.40M | 341.49M | 341.03M |
| EBITDA | 279.01M | 216.35M | 183.42M | 177.14M | 175.87M | 178.88M |
| Net Income | 178.17M | 158.27M | 132.62M | 124.93M | 120.51M | 118.53M |
Balance Sheet | ||||||
| Total Assets | 9.34B | 9.06B | 8.93B | 8.73B | 8.34B | 8.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 1.59B | 1.02B | 1.70B | 1.86B | 1.92B |
| Total Debt | 328.04M | 340.71M | 325.05M | 397.39M | 302.94M | 309.44M |
| Total Liabilities | 7.99B | 7.74B | 7.75B | 7.66B | 7.42B | 7.13B |
| Stockholders Equity | 1.32B | 1.27B | 1.11B | 989.57M | 864.07M | 916.25M |
Cash Flow | ||||||
| Free Cash Flow | 232.48M | 213.03M | 181.49M | 181.96M | 173.15M | 163.88M |
| Operating Cash Flow | 236.39M | 223.12M | 194.07M | 187.94M | 175.53M | 166.76M |
| Investing Cash Flow | -479.81M | -154.22M | -276.61M | -358.29M | -784.87M | -598.56M |
| Financing Cash Flow | 133.96M | -73.87M | 77.91M | 177.22M | 206.95M | 713.94M |
1St Source Technical Analysis
Positive
86.06
Price Trends
85.97
Positive
84.17
Positive
76.74
Positive
Market Momentum
0.19
Negative
58.31
Neutral
69.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRCE, the sentiment is Positive. The current price of 86.06 is above the 20-day moving average (MA) of 85.48, above the 50-day MA of 85.97, and above the 200-day MA of 76.74, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRCE.
1St Source Risk Analysis
1St Source disclosed 23 risk factors in its most recent earnings report. 1St Source 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
1St Source Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.92B | 13.49 | 12.17% | 2.39% | 21.78% | 43.92% | |
79 Outperform | $2.12B | 12.04 | 13.75% | 1.91% | 3.90% | 20.76% | |
74 Outperform | $2.51B | 10.93 | 9.51% | 3.42% | 35.64% | 113.53% | |
73 Outperform | $2.14B | 12.92 | 10.83% | 2.60% | 4.87% | 25.01% | |
73 Outperform | $1.52B | 13.59 | 15.07% | 3.40% | 2.03% | 18.45% | |
69 Neutral | $2.56B | 12.68 | 7.54% | 3.55% | 7.98% | -19.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
SRCE
1St Source
87.86
29.70
51.07%
BUSE
First Busey
30.38
8.03
35.94%
FCF
First Commonwealth
21.19
5.36
33.88%
FRME
First Merchants
41.09
5.68
16.04%
GABC
German American Bancorp
51.11
13.01
34.15%
LKFN
Lakeland Financial
61.17
4.49
7.93%
1St Source Corporate Events
Business Operations and StrategyFinancial Disclosures
1st Source Highlights Q2 Growth and Digital Modernization
Positive
Aug 5, 2026
In its investor presentation for the second quarter of 2026, 1st Source Corporation highlighted a diversified business mix split between community banking and specialty finance, supported by 78 banking centers, dedicated wealth advisory and insura...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.