NasdaqGS:GABC

Stock Analysis Report

German American Bancorp

Executive Summary

German American Bancorp, Inc. operates as the bank holding company for German American Bancorp that provides retail and commercial banking services.

Rewards

Trading at 24.4% below its fair value

Earnings are forecast to grow 6.26% per year

Earnings have grown 14.5% per year over the past 5 years

Pays a high and reliable dividend of 2.01%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Community Bank System

NYSE:CBU

Share Price & News

How has German American Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GABC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

GABC

0.6%

US Banks

-0.3%

US Market


1 Year Return

14.7%

GABC

19.0%

US Banks

18.6%

US Market

Return vs Industry: GABC matched the US Banks industry which returned 19% over the past year.

Return vs Market: GABC matched the US Market which returned 18.6% over the past year.


Shareholder returns

GABCIndustryMarket
7 Day0.4%0.6%-0.3%
30 Day0.2%1.8%2.2%
90 Day10.8%15.8%5.6%
1 Year17.2%14.7%22.5%19.0%21.1%18.6%
3 Year3.5%-2.1%30.1%21.0%45.6%36.2%
5 Year96.5%78.0%77.5%57.8%71.1%52.2%

Price Volatility Vs. Market

How volatile is German American Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is German American Bancorp undervalued compared to its fair value and its price relative to the market?

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GABC ($33.81) is trading below our estimate of fair value ($44.71)

Significantly Below Fair Value: GABC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GABC is poor value based on its PE Ratio (15.7x) compared to the Banks industry average (12.7x).

PE vs Market: GABC is good value based on its PE Ratio (15.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: GABC is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: GABC is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is German American Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GABC's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: GABC's earnings (6.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: GABC's earnings are forecast to grow, but not significantly.

Revenue vs Market: GABC's revenue (7.7% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: GABC's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GABC's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has German American Bancorp performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GABC has high quality earnings.

Growing Profit Margin: GABC's current net profit margins (30.5%) are lower than last year (33.9%).


Past Earnings Growth Analysis

Earnings Trend: GABC's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: GABC's earnings growth over the past year (15.3%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: GABC earnings growth over the past year (15.3%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: GABC's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is German American Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GABC has a low level of unsold assets or inventory.

Debt Coverage by Assets: GABC's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: GABC's level of assets compared to its equity is low.

Allowance for Bad Loans: GABC has a sufficient allowance for bad loans.

Low Risk Liabilities: GABC's liabilities are made up of primarily low risk sources of funding.

Loan Level: GABC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GABC's loans are broadly funded by customer deposits.

Level of Bad Loans: GABC has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

What is German American Bancorp's current dividend yield, its reliability and sustainability?

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: GABC's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: GABC's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: GABC's dividends per share have been stable in the past 10 years.

Growing Dividend: GABC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.7%), GABC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GABC's dividends in 3 years are forecast to be well covered by earnings (29.9% payout ratio).


Next Steps

Management

What is the CEO of German American Bancorp's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Mark Schroeder (65yo)

20.9yrs

Tenure

US$922,226

Compensation

Mr. Mark A. Schroeder has been Chairman and Chief Executive Officer at German American Bancorp, Inc. since 2009 and 1999 respectively and has been its Director since 1991. Mr. Schroeder is the Chairman and ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD922.23K) is below average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GABC's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GABC's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: GABC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$18,59219 Nov 19
Jack Sheidler
EntityIndividual
Shares551
Max PriceUS$33.74
BuyUS$17,71519 Nov 19
Tyson Wagler
EntityIndividual
Shares525
Max PriceUS$33.74
BuyUS$18,59219 Nov 19
Christina Ryan
EntityIndividual
Shares551
Max PriceUS$33.74
BuyUS$3,40819 Nov 19
Raymond Snowden
EntityIndividual
Shares101
Max PriceUS$33.74
BuyUS$2,56419 Nov 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares76
Max PriceUS$33.74
BuyUS$2,56419 Nov 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares76
Max PriceUS$33.74
BuyUS$2,56419 Nov 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares76
Max PriceUS$33.74
BuyUS$1,68719 Nov 19
Jason Kelly
EntityIndividual
Shares50
Max PriceUS$33.74
BuyUS$84419 Nov 19
Zachary Bawel
EntityIndividual
Shares25
Max PriceUS$33.74
BuyUS$89617 Oct 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares28
Max PriceUS$31.99
BuyUS$3,39117 Oct 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares106
Max PriceUS$31.99
BuyUS$4,25417 Oct 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares133
Max PriceUS$31.99
BuyUS$86417 Oct 19
Jason Kelly
EntityIndividual
Shares27
Max PriceUS$31.99
BuyUS$1,69517 Oct 19
Zachary Bawel
EntityIndividual
Shares53
Max PriceUS$31.99
BuyUS$1,69517 Oct 19
Raymond Snowden
EntityIndividual
Shares53
Max PriceUS$31.99
BuyUS$85918 Sep 19
Jason Kelly
EntityIndividual
Shares26
Max PriceUS$33.05
BuyUS$85918 Sep 19
Raymond Snowden
EntityIndividual
Shares26
Max PriceUS$33.05
BuyUS$82618 Sep 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25
Max PriceUS$33.05
BuyUS$10,64318 Sep 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares322
Max PriceUS$33.05
BuyUS$10,64318 Sep 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares322
Max PriceUS$33.05
BuyUS$1,68618 Sep 19
Zachary Bawel
EntityIndividual
Shares51
Max PriceUS$33.05
BuyUS$8,25519 Aug 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares273
Max PriceUS$30.24
BuyUS$19,98819 Aug 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares661
Max PriceUS$30.24
BuyUS$19,98819 Aug 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares661
Max PriceUS$30.24
BuyUS$7,40919 Aug 19
Jason Kelly
EntityIndividual
Shares245
Max PriceUS$30.24
BuyUS$8,95119 Aug 19
Raymond Snowden
EntityIndividual
Shares296
Max PriceUS$30.24
BuyUS$11,55119 Aug 19
Zachary Bawel
EntityIndividual
Shares382
Max PriceUS$30.24
BuyUS$5,02019 Aug 19
Christina Ernst
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares166
Max PriceUS$30.24
BuyUS$63,83302 Aug 19
CIK Partnership LP
EntityCompany
Shares2,059
Max PriceUS$31.00
BuyUS$20,00519 Jul 19
Raymond Snowden
EntityIndividual
Shares672
Max PriceUS$29.77
BuyUS$20,00519 Jul 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares672
Max PriceUS$29.77
BuyUS$5,00119 Jul 19
Marc Fine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares168
Max PriceUS$29.77
BuyUS$20,00519 Jul 19
Jason Kelly
EntityIndividual
Shares672
Max PriceUS$29.77
BuyUS$20,00519 Jul 19
Zachary Bawel
EntityIndividual
Shares672
Max PriceUS$29.77
BuyUS$20,00519 Jul 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares672
Max PriceUS$29.77
BuyUS$20,00519 Jul 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares672
Max PriceUS$29.77
BuyUS$20,00519 Jul 19
Christina Ernst
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares672
Max PriceUS$29.77
BuyUS$70819 Jun 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24
Max PriceUS$29.52
BuyUS$70819 Jun 19
Raymond Snowden
EntityIndividual
Shares24
Max PriceUS$29.52
BuyUS$70819 Jun 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24
Max PriceUS$29.52
BuyUS$70819 Jun 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares24
Max PriceUS$29.52
BuyUS$70819 Jun 19
Jason Kelly
EntityIndividual
Shares24
Max PriceUS$29.52
BuyUS$1,38719 Jun 19
Zachary Bawel
EntityIndividual
Shares47
Max PriceUS$29.52
BuyUS$2,09217 May 19
Raymond Snowden
EntityIndividual
Shares72
Max PriceUS$29.05
BuyUS$2,78917 May 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares96
Max PriceUS$29.05
BuyUS$2,12117 May 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares73
Max PriceUS$29.05
BuyUS$2,78917 May 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares96
Max PriceUS$29.05
BuyUS$1,39417 May 19
Zachary Bawel
EntityIndividual
Shares48
Max PriceUS$29.05
BuyUS$69717 May 19
Jason Kelly
EntityIndividual
Shares24
Max PriceUS$29.05
BuyUS$1,39517 Apr 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares47
Max PriceUS$29.68
BuyUS$3,50217 Apr 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares118
Max PriceUS$29.68
BuyUS$3,50217 Apr 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares118
Max PriceUS$29.68
BuyUS$2,10717 Apr 19
Raymond Snowden
EntityIndividual
Shares71
Max PriceUS$29.68
BuyUS$1,39517 Apr 19
Jason Kelly
EntityIndividual
Shares47
Max PriceUS$29.68
BuyUS$2,10717 Apr 19
Zachary Bawel
EntityIndividual
Shares71
Max PriceUS$29.68
BuyUS$20,67926 Mar 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares732
Max PriceUS$28.25
BuyUS$28,35026 Mar 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$28.35
BuyUS$114,00025 Mar 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$28.50
BuyUS$111,69922 Mar 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,865
Max PriceUS$28.90
BuyUS$70222 Mar 19
Jason Kelly
EntityIndividual
Shares23
Max PriceUS$30.51
BuyUS$2,10521 Mar 19
Raymond Snowden
EntityIndividual
Shares69
Max PriceUS$30.51
BuyUS$70221 Mar 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares23
Max PriceUS$30.51
BuyUS$3,50921 Mar 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares115
Max PriceUS$30.51
BuyUS$2,10521 Mar 19
Zachary Bawel
EntityIndividual
Shares69
Max PriceUS$30.51
BuyUS$90,70721 Mar 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,092
Max PriceUS$30.51
BuyUS$2,09813 Mar 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares68
Max PriceUS$30.85
BuyUS$29,50008 Mar 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$29.50
BuyUS$2,80721 Feb 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares91
Max PriceUS$30.85
BuyUS$1,38821 Feb 19
Zachary Bawel
EntityIndividual
Shares45
Max PriceUS$30.85
BuyUS$13,91321 Feb 19
Jason Kelly
EntityIndividual
Shares451
Max PriceUS$30.85
BuyUS$2,09821 Feb 19
Raymond Snowden
EntityIndividual
Shares68
Max PriceUS$30.85
BuyUS$2,12921 Feb 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares69
Max PriceUS$30.85
BuyUS$2,81217 Jan 19
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares92
Max PriceUS$30.56
BuyUS$70317 Jan 19
Zachary Bawel
EntityIndividual
Shares23
Max PriceUS$30.56
BuyUS$1,40617 Jan 19
Raymond Snowden
EntityIndividual
Shares46
Max PriceUS$30.56
BuyUS$2,07817 Jan 19
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares68
Max PriceUS$30.56
BuyUS$70317 Jan 19
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares23
Max PriceUS$30.56
BuyUS$69819 Dec 18
U. Klem
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares24
Max PriceUS$29.06
BuyUS$69819 Dec 18
Thomas Seger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24
Max PriceUS$29.06
BuyUS$1,39519 Dec 18
Zachary Bawel
EntityIndividual
Shares48
Max PriceUS$29.06
BuyUS$69819 Dec 18
Raymond Snowden
EntityIndividual
Shares24
Max PriceUS$29.06
BuyUS$69819 Dec 18
Christopher Ramsey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24
Max PriceUS$29.06

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Management Team

  • Clay Ewing (63yo)

    President & Secretary

    • Tenure: 0yrs
    • Compensation: US$542.62k
  • Lisa Matheis

    Vice President of Human Resources

    • Tenure: 0yrs
  • Mark Schroeder (65yo)

    Chairman & CEO

    • Tenure: 20.9yrs
    • Compensation: US$922.23k
  • Brad Rust (52yo)

    Executive VP & CFO

    • Tenure: 14.7yrs
    • Compensation: US$469.12k
  • H. Basham

    Senior VP & Senior Wealth Advisor

    • Tenure: 0yrs
  • D. Dauby (55yo)

    Executive VP & Chief Commercial Banking Officer

    • Tenure: 3.4yrs
    • Compensation: US$372.65k
  • Keith Leinenbach (60yo)

    Executive VP & Chief Credit Officer

    • Tenure: 0yrs
    • Compensation: US$382.05k
  • Randy Braun (59yo)

    Executive VP & Chief Retail Banking & Development Officer

    • Tenure: 3.4yrs
    • Compensation: US$381.05k
  • Terri Eckerle

    Vice President

    • Tenure: 0yrs
  • Michael Kern

    Senior Vice President of Commercial Banking

    • Tenure: 5.3yrs

Board Members

  • Mark Schroeder (65yo)

    Chairman & CEO

    • Tenure: 20.9yrs
    • Compensation: US$922.23k
  • Dave Lett (66yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$63.23k
  • Chris Ernst (69yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$62.63k
  • U. Klem (68yo)

    Lead Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$82.43k
  • Chris Ramsey (62yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$59.73k
  • Marc Fine (59yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$74.23k
  • Danny Bateman (69yo)

    Member of Advisory Board

    • Tenure: 8.9yrs
  • Daniel Aiken (69yo)

    Member of Advisory Board

    • Tenure: 8.9yrs
  • M. Root (58yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$70.18k
  • Tom Seger (61yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$70.33k

Company Information

German American Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: German American Bancorp, Inc.
  • Ticker: GABC
  • Exchange: NasdaqGS
  • Founded: 1910
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$886.501m
  • Shares outstanding: 26.66m
  • Website: https://www.germanamerican.com

Number of Employees


Location

  • German American Bancorp, Inc.
  • 711 Main Street
  • Box 810
  • Jasper
  • Indiana
  • 47546
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GABCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1993
GABDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1993

Biography

German American Bancorp, Inc. operates as the bank holding company for German American Bancorp that provides retail and commercial banking services. The company operates through three segments: Core Bankin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:36
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.