NasdaqGS:SRCE

Stock Analysis Report

Executive Summary

1st Source Corporation operates as the holding company for 1st Source Bank that provides commercial and consumer banking services, trust and investment management services, and insurance to individual and business clients.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has 1st Source's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

SRCE

-0.08%

US Banks

0.9%

US Market


1 Year Return

9.7%

SRCE

11.2%

US Banks

16.8%

US Market

Return vs Industry: SRCE matched the US Banks industry which returned 11.2% over the past year.

Return vs Market: SRCE underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

SRCEIndustryMarket
7 Day-0.5%-0.08%0.9%
30 Day4.2%6.7%4.5%
90 Day15.2%17.0%6.2%
1 Year12.2%9.7%14.5%11.2%19.4%16.8%
3 Year37.7%30.0%38.7%29.0%47.5%38.0%
5 Year100.8%81.4%72.3%53.2%62.0%44.1%

Price Volatility Vs. Market

How volatile is 1st Source's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 1st Source undervalued compared to its fair value and its price relative to the market?

14.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRCE ($51.29) is trading above our estimate of fair value ($49.46)

Significantly Below Fair Value: SRCE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRCE is poor value based on its PE Ratio (14.5x) compared to the Banks industry average (12.7x).

PE vs Market: SRCE is good value based on its PE Ratio (14.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SRCE is poor value based on its PEG Ratio (17.3x)


Price to Book Ratio

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


Next Steps

Future Growth

How is 1st Source forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRCE's forecast earnings growth (0.8% per year) is below the savings rate (2.7%).

Earnings vs Market: SRCE's earnings (0.8% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: SRCE's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SRCE's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has 1st Source performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRCE has high quality earnings.

Growing Profit Margin: SRCE's current net profit margins (29.5%) are higher than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: SRCE's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: SRCE's earnings growth over the past year (16%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: SRCE earnings growth over the past year (16%) underperformed the Banks industry 27.5%.


Return on Equity

High ROE: SRCE's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 1st Source'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: SRCE has a low level of unsold assets or inventory.

Debt Coverage by Assets: SRCE's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: SRCE has an appropriate level of bad loans (0.2%)


Next Steps

Dividend

What is 1st Source's current dividend yield, its reliability and sustainability?

2.11%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: SRCE's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SRCE's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: SRCE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.6%), SRCE's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRCE's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).


Next Steps

Management

What is the CEO of 1st Source's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Chris Murphy (72yo)

40.8yrs

Tenure

US$1,669,813

Compensation

Mr. Christopher J. Murphy, III, also known as Chris, serves as Director at Federal Reserve Bank of Chicago. He has been Chief Executive Officer of 1st Source Corporation since 1979. Mr. Murphy has been the ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.67M) is below average for companies of similar size in the US market ($USD3.91M).

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


Management Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

Experienced Management: SRCE's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

15.6yrs

Average Tenure

67yo

Average Age

Experienced Board: SRCE's board of directors are seasoned and experienced ( 15.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$149,95512 Nov 19
John Griffith
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares2,896
Max PriceUS$51.78
BuyUS$88,67927 Aug 19
John Affleck-Graves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$44.34

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Chris Murphy (72yo)

    Chairman & CEO

    • Tenure: 40.8yrs
    • Compensation: US$1.67m
  • John Griffith (61yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$619.28k
  • Larry Mayers

    Regional President of 1st Source Bank

    • Tenure: 0yrs
  • Jim Seitz (66yo)

    President

    • Tenure: 5.1yrs
    • Compensation: US$721.44k
  • Andrea Short (56yo)

    Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$633.70k
  • Chris Strafford

    Senior Vice President

    • Tenure: 3.2yrs
  • Lanny Scoby

    City President of Kalamazoo Market-1st Source Bank

    • Tenure: 5.8yrs
  • Jeff Buhr (59yo)

    Executive VP & Chief Credit Officer of 1st Source Bank

    • Tenure: 17.8yrs
    • Compensation: US$537.26k
  • Greg Brown

    President of Specialty Vehicle Division and President of Auto/Light Truck Division

    • Tenure: 4.3yrs
  • Chris Craft

    President & COO of Specialty Finance Group - 1st Source Bank

    • Tenure: 4.3yrs

Board Members

  • Chris Murphy (72yo)

    Chairman & CEO

    • Tenure: 40.8yrs
    • Compensation: US$1.67m
  • Daniel Fitzpatrick (61yo)

    Director

    • Tenure: 24.8yrs
    • Compensation: US$79.80k
  • Vinod Khilnani (67yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$99.80k
  • Rex Martin (67yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$72.30k
  • Timothy Ozark (69yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: US$102.80k
  • Mark Schwabero (66yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$76.05k
  • John Phair (69yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$91.30k
  • John Affleck-Graves (68yo)

    Independent Director

    • Tenure: 0.3yrs
  • Ernestine Raclin

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$282.99k
  • Christopher Murphy (49yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$88.80k

Company Information

1st Source Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 1st Source Corporation
  • Ticker: SRCE
  • Exchange: NasdaqGS
  • Founded: 1863
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.296b
  • Shares outstanding: 25.51m
  • Website: https://www.1stsource.com

Number of Employees


Location

  • 1st Source Corporation
  • 100 North Michigan Street
  • South Bend
  • Indiana
  • 46601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRCENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980

Biography

1st Source Corporation operates as the holding company for 1st Source Bank that provides commercial and consumer banking services, trust and investment management services, and insurance to individual and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:35
End of Day Share Price2019/11/19 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.