1st Source Corporation Fundamental Analysis (NASDAQ: SRCE)
1st Source Corporation Fundamental Analysis (NASDAQ: SRCE)
1st Source Corporation (NASDAQ: SRCE) shows strong financial fundamentals with a PE ratio of 13.01, profit margin of 28.09%, and ROE of 13.41%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 5.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SRCE's fundamental strength across five key dimensions:
Efficiency Score
WeakSRCE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSRCE trades at attractive valuation levels.
Growth Score
ExcellentSRCE delivers strong and consistent growth momentum.
Financial Health Score
ModerateSRCE shows balanced financial health with some risks.
Profitability Score
ModerateSRCE maintains healthy but balanced margins.
Key Financial Metrics
Is SRCE Expensive or Cheap?
P/E Ratio
SRCE trades at 13.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SRCE's PEG of 0.59 indicates potential undervaluation.
Price to Book
The market values 1st Source Corporation at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.59 times EBITDA. This is generally considered low.
How Well Does SRCE Make Money?
Net Profit Margin
For every $100 in sales, 1st Source Corporation keeps $28.09 as profit after all expenses.
Operating Margin
Core operations generate 36.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.41 in profit for every $100 of shareholder equity.
ROA
1st Source Corporation generates $1.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
1st Source Corporation generates strong operating cash flow of $215.42M, reflecting robust business health.
Free Cash Flow
1st Source Corporation generates strong free cash flow of $217.78M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.05 in free cash annually.
FCF Yield
SRCE converts 10.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How SRCE Stacks Against Its Sector Peers
| Metric | SRCE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.01 | 21.12 | Better (Cheaper) |
| ROE | 13.41% | 655.00% | Weak |
| Net Margin | 28.09% | -778.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 0.51 | 871.99 | Weak Liquidity |
| ROA | 1.85% | 6590.00% | Weak |
SRCE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 1st Source Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.14%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
103.40%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
51.14%
Industry Style: Value, Dividend, Cyclical
High Growth