1st Source Corp. (SRCE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

First Bancorp (North Carolina)

Live Oak Bancshares, Inc.

Stock Yards Bancorp, Inc.

1st Source Corp.

First Commonwealth Financial Corp. (Pennsylvania)

Heartland Financial USA, Inc.

Lakeland Financial Corp. (Indiana)

Trustmark Corp.

Merchants Bancorp (Indiana)

National Bank Holdings Corp.

Westamerica Bancorporation

Why is 1st Source Corp. ?

High Profitability with a Net Interest Margin of 5.51%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 223.7 MM
NII(Q) Highest at USD 93.3 MM
ROCE(HY) Highest at 1.75%

With ROA of 1.04%, it has a attractive valuation with a 1.38 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.27%, its profits have risen by 10.8% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 78.1%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 7.27% in the last 1 year, much lower than market (S&P 500) returns of 17.78%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to 1st Source Corp. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is 1st Source Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

1st Source Corp.

7.27%

1.45

24.78%

S&P 500

17.78%

0.92

19.35%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.36%

EBIT Growth (5y)

13.07%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

23.52%

Pledged Shares

Institutional Holding

78.10%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.38

EV to EBIT

9.83

EV to EBITDA

9.25

EV to Capital Employed

1.38

EV to Sales

3.37

PEG Ratio

1.13

Dividend Yield

ROCE (Latest)

14.01%

ROE (Latest)

11.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 223.7 MM

NII(Q)

Highest at USD 93.3 MM

ROCE(HY)

Highest at 1.75%

DIVIDEND PER SHARE(HY)

Highest at USD 0

NET SALES(Q)

Highest at USD 132.99 MM

OPERATING PROFIT(Q)

Highest at USD 59.37 MM

OPERATING PROFIT MARGIN(Q)

Highest at 44.64 %

CREDIT DEPOSIT RATIO(HY)

Highest at 97.52%

-5What is not working for the Company

ROCE(HY)

Lowest at 1.75%

GROSS NPA (%)

DIVIDEND PAYOUT RATIO(Y)

Lowest at 23.71%

Here's what is working for 1st Source Corp.

NII

Highest at USD 93.3 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Operating Cash Flow

Highest at USD 223.7 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 132.99 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 59.37 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 44.64 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Credit Deposit Ratio

Highest at 97.52%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

CASA

Highest at 16.79%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for 1st Source Corp.

Non Performing Loans (%)

Highest at 1.09%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Dividend Payout Ratio

Lowest at 23.71%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)