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1st Source Corp (SRCE) stock analysis

SRCENasdaqState Commercial BanksFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 22, 2026Score 10/3014% above fair value
$88.13−0.12 (-0.14%)

Close on Nov 13, 2026Market cap $2.12BP/E 12.0Yield 1.72%

StockData Score

Prices as of Nov 13, 2026How the score works

Value1Growth0Performance0Health6Dividend3

Mixed10 of 30 checks passed

1st Source passes 10 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
0/6
Past performance
0/6
Financial health
6/6
Dividend
3/6

What stands out

  • Modest borrowings

    Borrowings other than deposits are 17.7% of equity.

  • P/E below the industry

    1st Source's P/E of 12.0 is below the Commercial Banks median of 12.1.

  • Covered by free cash flow

    Dividends take 18.3% of free cash flow.

  • Dividend not cut

    The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

What to watch

  • Margin of safety under 20%

    The price is 13.9% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $88.13 is above our fair value estimate of $77.36.

  • Revenue growing under 10% a year

    Revenue grew 6.9% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew 9.8% a year over the last three fiscal years.

Valuation1/6

  • P/E above its 5-year median

    1st Source's P/E of 12.0 is above its own 5-year median of 10.6.

  • P/E below the industry

    1st Source's P/E of 12.0 is below the Commercial Banks median of 12.1.

  • P/S above the industry

    1st Source's price-to-sales of 4.59 is above the Commercial Banks median of 3.60.

  • P/B above the industry

    1st Source's price-to-book of 1.61 is above the Commercial Banks median of 1.28.

  • Trading above fair value

    The share price of $88.13 is above our fair value estimate of $77.36.

  • Margin of safety under 20%

    The price is 13.9% above fair value, so there is no margin of safety.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew 6.9% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew 9.8% a year over the last three fiscal years.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 9.9% over the last twelve months; the Commercial Banks median is 11.3%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin trend

    Banks and insurers do not report gross profit.

Past performance0/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on assets

    Needs net income and total assets.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health6/6

  • Well capitalized

    Equity is 14.1% of total assets; 8% or more is a comfortable cushion.

  • Loans funded by deposits

    Loans equal 96.0% of deposits, so lending is funded by customer deposits.

  • Adequate loan-loss reserve

    The allowance for credit losses is 2.3% of loans; we look for at least 1%.

  • Efficient operations

    Non-interest expense takes 47.9% of revenue; under 60% is efficient for a bank.

  • Deposits growing

    Deposits grew 0.8% over the past year.

  • Modest borrowings

    Borrowings other than deposits are 17.7% of equity.

Dividend3/6

  • Pays a dividend

    1st Source paid dividends worth 2.0% of the share price over the last twelve months.

  • Yield below Treasuries

    The 2.0% yield is below the 4.7% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 3.8% or more; 1st Source yields 2.0%.

  • Dividend not cut

    The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

  • Earnings cover

    Needs dividends paid and net income.

  • Covered by free cash flow

    Dividends take 18.3% of free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$77.36

The share price is 14% above this estimate.

20%+ below
Near fair value
20%+ above
$88.13Price$77.36Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E11.3×10.6×12.1×$83.0850%
P/B1.3×1.3×1.3×$71.6450%
Fair value$77.36100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 10.6
  • Commercial Banks median 12.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$9.48M
Value traded per 1% price move
$11.30M

Downside

Low risk

Typical loss in a bad month
5.2%
Volatility (annualized)
19%
Sharpe ratio, 1 year
2.01
Beta to the S&P 500 (5Y)
0.59

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

–

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