Sturgis Bancorp (STBI) AI Stock Analysis

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Sturgis Bancorp

(Other OTC:STBI)

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Rating:73Outperform

Price Target:$32.00▲(10.54% Upside)

Action:reiterated

Date:11/07/26

The score is driven primarily by improving fundamentals (revenue growth, a strong 2025 earnings rebound, and reduced leverage) and a notably attractive valuation (low P/E with a dividend). Offsetting factors include historical volatility in profitability/free cash flow and softer near-term technical momentum versus the 20- and 50-day averages.

Positive Factors

Consistent Revenue GrowthConsistent revenue growth indicates that Sturgis Bancorp has maintained demand for its community banking products across multiple years. A durable top-line trajectory can support recurring interest and fee income, strengthen operating scale, and provide a foundation for rebuilding earnings over the next several quarters.

Negative Factors

Margin VolatilityThe wide swings in profitability make it harder to determine how much of the 2025 improvement represents sustainable earnings power. Continued margin variability could reduce forecasting confidence, complicate capital planning, and limit the consistency of returns even while revenue continues to grow.

Sturgis Bancorp (STBI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $62.04M
Dividend Yield: 2.52%
Average Volume (3M): 1,316
Price to Earnings (P/E): 6.9
Beta (1Y): 0.12
Revenue Growth: 5.40%
EPS Growth: 20.55%
Country: US
Employees: 118
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Sturgis Bancorp Business Overview & Revenue Model

Company Description

Sturgis Bancorp, Inc. serves as the parent company for Sturgis Bank & Trust Company, a financial institution that delivers a broad spectrum of banking solutions and services across Michigan, United States. Its product portfolio encompasses various de...

How the Company Makes Money

Sturgis Bancorp primarily makes money through its bank subsidiary by earning interest income and fee-based revenue. The largest earnings driver for most community banks is typically net interest income: the bank collects interest on loans and other i...

Sturgis Bancorp Financial Statement Overview

Summary

Income statement and balance sheet trends are solid (revenue growth and a meaningful 2025 profitability rebound; leverage reduced to a more conservative level with ROE recovery). The main restraint is volatility in margins and free cash flow across years, which reduces confidence in the sustainability of the 2025 improvement.

Income Statement

74Positive

Balance Sheet

76Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	61.45M	59.13M	56.11M	49.03M	35.38M	32.88M
Gross Profit	45.56M	42.44M	32.80M	35.49M	30.89M	27.69M
EBITDA	11.15M	9.19M	3.16M	9.07M	9.58M	9.96M
Net Income	8.98M	7.46M	2.83M	6.02M	6.62M	6.34M
Balance Sheet
Total Assets	1.07B	998.66M	956.39M	919.47M	864.80M	751.74M
Cash, Cash Equivalents and Short-Term Investments	13.79M	10.64M	97.87M	92.67M	78.14M	123.15M
Total Debt	40.51M	30.68M	76.02M	54.84M	85.75M	103.67M
Total Liabilities	1.01B	935.41M	900.98M	863.70M	812.26M	699.30M
Stockholders Equity	65.59M	63.26M	55.41M	55.77M	52.55M	52.44M
Cash Flow
Free Cash Flow	0	13.88M	6.55M	7.81M	6.78M	10.41M
Operating Cash Flow	0	16.24M	7.62M	11.05M	12.04M	12.63M
Investing Cash Flow	0	-19.55M	-61.38M	-32.99M	-152.45M	-143.38M
Financing Cash Flow	0	23.91M	34.55M	46.97M	115.87M	102.43M

Sturgis Bancorp Technical Analysis

Technical Analysis SentimentNegative

Last Price28.95

Price Trends

50DMA29.07Negative

100DMA28.73Negative

200DMA26.33Positive

Market Momentum

MACD-0.07Positive

RSI39.08Neutral

STOCH19.50Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STBI, the sentiment is Negative. The current price of 28.95 is below the 20-day moving average (MA) of 28.96, below the 50-day MA of 29.07, and above the 200-day MA of 26.33, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STBI.

Sturgis Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

STBI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFBL	74Outperform	$67.77M	11.19	11.12%	2.38%	7.94%	43.98%
STBI	73Outperform	$62.04M	6.89	13.80%	2.52%	5.40%	20.55%
ASRV	70Outperform	$80.36M	9.12	7.48%	2.45%	2.43%	75.47%
CLST	68Neutral	$71.09M	24.30	3.06%	―	31.73%	17.80%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

STBI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
STBI	Sturgis Bancorp	28.95	9.02	45.23%
ASRV	AmeriServ Financial, Inc.	4.90	1.96	66.55%
HFBL	Home Federal Bancorp Inc. Of Louisiana	23.95	8.75	57.56%
CLST	Catalyst Bancorp, Inc.	17.38	2.60	17.56%

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.

Date of analysis: Nov 07, 2026

Sturgis Bancorp AI Stock Analysis