1ST SOURCE CORP (SRCE)
US3369011032 - Common Stock
We assign a fundamental rating of 4 out of 10 to SRCE. SRCE was compared to 412 industry peers in the Banks industry. While SRCE is still in line with the averages on profitability rating, there are concerns on its financial health. SRCE has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
Looking at the Return On Assets, with a value of 1.41%, SRCE belongs to the top of the industry, outperforming 86.65% of the companies in the same industry.
SRCE has a better Return On Equity (12.09%) than 79.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 12.09% | ||
| ROIC | N/A |
ROA(3y)1.43%
ROA(5y)1.36%
ROE(3y)13.06%
ROE(5y)11.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 32.94%, SRCE belongs to the top of the industry, outperforming 86.17% of the companies in the same industry.
SRCE's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for SRCE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 32.94% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y10.94%
PM growth 5Y4.94%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SRCE has less shares outstanding
The debt/assets ratio for SRCE is higher compared to a year ago.
2.2 Solvency
SRCE has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
SRCE's Debt to FCF ratio of 1.96 is in line compared to the rest of the industry. SRCE outperforms 58.50% of its industry peers.
SRCE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
SRCE has a Debt to Equity ratio of 0.34. This is in the lower half of the industry: SRCE underperforms 64.08% of its industry peers.
Although SRCE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.44%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for SRCE have decreased by -0.80% in the last year.
Measured over the past years, SRCE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.77% on average per year.
SRCE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.54%.
Measured over the past years, SRCE shows a small growth in Revenue. The Revenue has been growing by 3.49% on average per year.
EPS 1Y (TTM)-0.8%
EPS 3Y16.56%
EPS 5Y9.77%
EPS growth Q2Q-4.8%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y3.85%
Revenue growth 5Y3.49%
Revenue growth Q2Q1.27%
3.2 Future
The Earnings Per Share is expected to decrease by -4.41% on average over the next years.
Based on estimates for the next years, SRCE will show a small growth in Revenue. The Revenue will grow by 1.89% on average per year.
EPS Next Y-7.48%
EPS Next 2Y-4.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.9%
Revenue Next 2Y1.89%
Revenue Next 3YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.37, the valuation of SRCE can be described as very reasonable.
SRCE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, SRCE is valued rather cheaply.
The Price/Forward Earnings ratio is 11.22, which indicates a very decent valuation of SRCE.
SRCE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.88. SRCE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SRCE is valued a bit cheaper than 68.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as SRCE's earnings are expected to decrease with -4.41% in the coming years.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-4.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SRCE has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.78, SRCE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, SRCE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
On average, the dividend of SRCE grows each year by 6.25%, which is quite nice.
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)6.25%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
SRCE pays out 27.50% of its income as dividend. This is a sustainable payout ratio.
DP27.5%
EPS Next 2Y-4.41%
EPS Next 3YN/A
1ST SOURCE CORP
NASDAQ:SRCE (5/3/2024, 7:19:37 PM)
After market: 51.45 0 (0%)51.45
-0.19 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 11.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 12.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 32.94% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.8%
EPS 3Y16.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.54%
Revenue growth 3Y3.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y