66.5 USD
-1.02 (-1.51%)
Taking everything into account, SRCE scores 5 out of 10 in our fundamental rating. SRCE was compared to 383 industry peers in the Banks industry. There are concerns on the financial health of SRCE while its profitability can be described as average. SRCE is not valued too expensively and it also shows a decent growth rate. Finally SRCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SRCE had positive earnings in the past year.
- In the past year SRCE had a positive cash flow from operations.
- SRCE had positive earnings in each of the past 5 years.
- SRCE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 1.63%, SRCE belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
- SRCE's Return On Equity of 11.91% is amongst the best of the industry. SRCE outperforms 80.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 11.91% | ||
| ROIC | N/A |
ROA(3y)1.44%
ROA(5y)1.38%
ROE(3y)12.72%
ROE(5y)12.02%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 35.00%, SRCE belongs to the top of the industry, outperforming 91.12% of the companies in the same industry.
- In the last couple of years the Profit Margin of SRCE has grown nicely.
- SRCE does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 35% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-0.95%
PM growth 5Y3.83%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- SRCE does not have a ROIC to compare to the WACC, probably because it is not profitable.
- SRCE has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SRCE has less shares outstanding
- SRCE has a worse debt/assets ratio than last year.
2.2 Solvency
- SRCE has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
- SRCE has a better Debt to FCF ratio (0.94) than 68.67% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that SRCE is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.14, SRCE perfoms like the industry average, outperforming 57.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.95%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.69% over the past year.
- Measured over the past years, SRCE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.41% on average per year.
- The Revenue has grown by 10.54% in the past year. This is quite good.
- SRCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.56% yearly.
EPS 1Y (TTM)14.69%
EPS 3Y4.55%
EPS 5Y8.41%
EPS Q2Q%21.28%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y4.76%
Revenue growth 5Y3.56%
Sales Q2Q%12.99%
3.2 Future
- SRCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.62% yearly.
- Based on estimates for the next years, SRCE will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y20.97%
EPS Next 2Y10.17%
EPS Next 3Y7.62%
EPS Next 5YN/A
Revenue Next Year12.63%
Revenue Next 2Y7.33%
Revenue Next 3Y5.87%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- SRCE is valuated reasonably with a Price/Earnings ratio of 11.06.
- Based on the Price/Earnings ratio, SRCE is valued a bit cheaper than 71.28% of the companies in the same industry.
- SRCE is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.22 indicates a reasonable valuation of SRCE.
- 60.57% of the companies in the same industry are more expensive than SRCE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. SRCE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, SRCE is valued a bit cheaper than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- SRCE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.53
PEG (5Y)1.32
EPS Next 2Y10.17%
EPS Next 3Y7.62%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.37%, SRCE has a reasonable but not impressive dividend return.
- SRCE's Dividend Yield is comparable with the industry average which is at 2.84.
- Compared to an average S&P500 Dividend Yield of 1.82, SRCE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
- The dividend of SRCE has a limited annual growth rate of 5.05%.
- SRCE has been paying a dividend for at least 10 years, so it has a reliable track record.
- SRCE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.05%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
- SRCE pays out 25.42% of its income as dividend. This is a sustainable payout ratio.
- SRCE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.42%
EPS Next 2Y10.17%
EPS Next 3Y7.62%
1ST SOURCE CORP / SRCE FAQ
What is the fundamental rating for SRCE stock?
ChartMill assigns a fundamental rating of 5 / 10 to SRCE.
What is the valuation status for SRCE stock?
ChartMill assigns a valuation rating of 6 / 10 to 1ST SOURCE CORP (SRCE). This can be considered as Fairly Valued.
How profitable is 1ST SOURCE CORP (SRCE) stock?
1ST SOURCE CORP (SRCE) has a profitability rating of 5 / 10.
Can you provide the financial health for SRCE stock?
The financial health rating of 1ST SOURCE CORP (SRCE) is 3 / 10.
What is the earnings growth outlook for 1ST SOURCE CORP?
The Earnings per Share (EPS) of 1ST SOURCE CORP (SRCE) is expected to grow by 20.97% in the next year.