German American Bancorp, Inc. Fundamental Analysis (NASDAQ: GABC)
German American Bancorp, Inc. Fundamental Analysis (NASDAQ: GABC)
German American Bancorp, Inc. (NASDAQ: GABC) shows strong financial fundamentals with a PE ratio of 13.44, profit margin of 27.09%, and ROE of 11.95%. The company generates $0.5B in annual revenue with strong year-over-year growth of 54.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GABC's fundamental strength across five key dimensions:
Efficiency Score
WeakGABC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGABC trades at attractive valuation levels.
Growth Score
ModerateGABC shows steady but slowing expansion.
Financial Health Score
ExcellentGABC maintains a strong and stable balance sheet.
Profitability Score
ModerateGABC maintains healthy but balanced margins.
Key Financial Metrics
Is GABC Expensive or Cheap?
P/E Ratio
GABC trades at 13.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GABC's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values German American Bancorp, Inc. at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.82 times EBITDA. This is generally considered low.
How Well Does GABC Make Money?
Net Profit Margin
For every $100 in sales, German American Bancorp, Inc. keeps $27.09 as profit after all expenses.
Operating Margin
Core operations generate 33.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.95 in profit for every $100 of shareholder equity.
ROA
German American Bancorp, Inc. generates $1.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
German American Bancorp, Inc. generates strong operating cash flow of $158.63M, reflecting robust business health.
Free Cash Flow
German American Bancorp, Inc. generates strong free cash flow of $153.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.09 in free cash annually.
FCF Yield
GABC converts 8.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GABC Stacks Against Its Sector Peers
| Metric | GABC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.44 | 21.04 | Better (Cheaper) |
| ROE | 11.95% | 654.00% | Weak |
| Net Margin | 27.09% | -780.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 3.51 | 877.76 | Strong Liquidity |
| ROA | 1.61% | 6586.00% | Weak |
GABC outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews German American Bancorp, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.61%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
30.58%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
24.33%
Industry Style: Value, Dividend, Cyclical
High Growth