1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: 2.31%
• Average Volume (3M): 122.11K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.77
• Revenue Growth: 9.30%
• EPS Growth: 15.19%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 5.75
• Shares Outstanding: 24,562,910
• 10 Day Avg. Volume: 96,778
• 30 Day Avg. Volume: 122,105
• PEG Ratio: 0.70
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.00
• Price Target Upside: 12.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

1st Source demonstrates strong financial health, a favorable valuation, and strategic advancements in renewable energy and digital payments. These strengths are slightly tempered by neutral technical indicators and careful monitoring of recent fluctuations in cash flow and revenue growth.

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 exhibits solid financial health with consistent revenue and profit growth, strong cash flow, and a stable balance sheet. While profitability remains high, attention should be given to recent fluctuations in revenue growth and free cash flow.

Income Statement

1st Source has demonstrated a strong revenue growth trajectory with a notable increase in total revenue from 2020 to TTM 2025. The gross profit margin and net profit margin indicate healthy profitability, though a slight decline was observed recently. EBIT and EBITDA margins remain robust, underscoring effective cost management.

Balance Sheet

The balance sheet reflects stability with a relatively low debt-to-equity ratio, indicating prudent financial leverage. Return on equity shows strong performance, although there is a minor decrease in equity ratio, suggesting a slight increase in liabilities relative to assets.

Cash Flow

Operating cash flow remains strong, with positive free cash flow indicating good liquidity management. The free cash flow to net income ratio is favorable, although there was a recent decrease in free cash flow growth, which might signal caution.

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
252.70M	341.58M	179.42M	135.31M	147.71M
	Net Debt
175.86M	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
194.07M	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: Positive
• Last Price: 61.51
• 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 SRCE, the sentiment is Positive. The current price of 61.51 is above the 20-day moving average (MA) of 56.49, above the 50-day MA of 59.72, and above the 200-day MA of 60.27, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 92.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRCE.

1St Source Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEL	76 Outperform	$1.33B	11.93	7.40%	2.08%	-0.58%	-3.02%
CUBI	74 Outperform	$1.63B	12.96	8.14%	―	-5.61%	-44.11%
SRCE	74 Outperform	$1.51B	10.70	12.84%	2.31%	9.30%	15.19%
NBHC	70 Outperform	$1.39B	12.60	8.68%	3.13%	1.63%	-16.82%
LKFN	68 Neutral	$1.49B	16.65	13.44%	3.36%	5.03%	-3.19%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
CLBK	48 Neutral	$1.57B	97.23	-0.15%	―	4.29%	-109.93%

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.