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1St Source Corp. (SRCE) Stock Fundamental Analysis & AI Rating 2026

SRCE Nasdaq State Commercial Banks IN CIK: 0000034782
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2025-12-31
📅 Next earnings: Apr 23, 2026 (in 7 days) • TBD ET • EPS est. $1.64 (vs $1.52 prior year) • All earnings →
HOLD
68% Conf
Pending
Analysis scheduled

📊 SRCE Key Takeaways

Revenue: $514.4M
Net Margin: 30.8%
Free Cash Flow: $213.0M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $6.41
AI Rating: HOLD with 68% confidence
1St Source Corp. (SRCE) receives a HOLD rating with 68% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $514.4M, net profit margin of 30.8%, and return on equity (ROE) of 12.4%, 1St Source Corp. demonstrates mixed fundamentals in the Finance sector. Below is our complete SRCE stock analysis for 2026.

Is 1St Source Corp. (SRCE) a Good Investment?

Claude

1st Source demonstrates exceptional profitability margins (30.8% net margin) and strong free cash flow generation ($213M, 41.4% FCF margin) supported by a fortress balance sheet with zero debt. However, the complete stagnation of net income (+0.0% YoY) despite explosive 47.7% revenue growth signals margin compression from likely acquisitions, compounded by a thin 1.6x interest coverage ratio that limits downside protection in a rising-rate environment.

Why Buy 1St Source Corp. Stock? SRCE Key Strengths

Claude
  • + Exceptional net margin of 30.8% and operating margin of 29.3% indicating strong pricing power
  • + Outstanding free cash flow generation of $213M with 41.4% FCF margin showing capital-efficient operations
  • + Fortress balance sheet with zero long-term debt, 0.00x debt/equity ratio, and $119.9M cash reserves
  • + Strong EPS growth of 19.6% YoY demonstrating per-share value creation

SRCE Stock Risks: 1St Source Corp. Investment Risks

Claude
  • ! Net income flat YoY despite 47.7% revenue growth indicating significant margin compression from acquisition integration
  • ! Low interest coverage ratio of 1.6x creates limited financial flexibility in stress scenarios or rising rate environment
  • ! Revenue growth quality questionable as gains not translating to earnings growth, suggesting acquisition-driven growth with margin dilution
  • ! ROA of 1.7% below peer expectations for banking sector, indicating below-average asset productivity

Key Metrics to Watch

Claude
  • * Quarterly net income trend to determine if flat performance is temporary or structural
  • * Interest coverage ratio trajectory as rates normalize
  • * Organic vs. acquisition-driven revenue breakdown to assess core growth quality
  • * Net interest margin trends indicating pricing power sustainability

1St Source Corp. (SRCE) Financial Metrics & Key Ratios

Revenue
$514.4M
Net Income
$158.3M
EPS (Diluted)
$6.41
Free Cash Flow
$213.0M
Total Assets
$9.1B
Cash Position
$119.9M

💡 AI Analyst Insight

The 41.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

SRCE Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 29.3%
Net Margin 30.8%
ROE 12.4%
ROA 1.7%
FCF Margin 41.4%

SRCE vs Finance Sector: How 1St Source Corp. Compares

How 1St Source Corp. compares to Finance sector averages

Net Margin
SRCE 30.8%
vs
Sector Avg 25.0%
SRCE Sector
ROE
SRCE 12.4%
vs
Sector Avg 12.0%
SRCE Sector
Current Ratio
SRCE 0.0x
vs
Sector Avg 1.2x
SRCE Sector
Debt/Equity
SRCE 0.0x
vs
Sector Avg 2.0x
SRCE Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is 1St Source Corp. Stock Overvalued? SRCE Valuation Analysis 2026

Based on fundamental analysis, 1St Source Corp. appears fundamentally strong relative to the Finance sector in 2026.

Return on Equity
12.4%
Sector avg: 12%
Net Profit Margin
30.8%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

1St Source Corp. Balance Sheet: SRCE Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
85.4%
Interest Coverage
1.65x
Long-term Debt
N/A

SRCE Revenue & Earnings Growth: 5-Year Financial Trend

SRCE 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: 1St Source Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $5.03 reflects profitable operations.

SRCE Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
41.4%
Free cash flow / Revenue

1St Source Corp. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$223.1M
Cash generated from operations
Stock Buybacks
$13.9M
Shares repurchased (TTM)
Capital Expenditures
$10.1M
Investment in assets
Dividends Paid
$38.4M
Returned to shareholders

SRCE SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for 1St Source Corp. (CIK: 0000034782)

📋 Recent SEC Filings

Date Form Document Action
Mar 13, 2026 DEF 14A source-20260311.htm View →
Mar 10, 2026 4 xslF345X05/wk-form4_1773178517.xml View →
Mar 10, 2026 4 xslF345X05/wk-form4_1773178370.xml View →
Feb 23, 2026 8-K source-20260223.htm View →
Feb 18, 2026 4 xslF345X05/wk-form4_1771452386.xml View →

Frequently Asked Questions about SRCE

What is the AI rating for SRCE?

1St Source Corp. (SRCE) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SRCE's key strengths?

Claude: Exceptional net margin of 30.8% and operating margin of 29.3% indicating strong pricing power. Outstanding free cash flow generation of $213M with 41.4% FCF margin showing capital-efficient operations.

What are the risks of investing in SRCE?

Claude: Net income flat YoY despite 47.7% revenue growth indicating significant margin compression from acquisition integration. Low interest coverage ratio of 1.6x creates limited financial flexibility in stress scenarios or rising rate environment.

What is SRCE's revenue and growth?

1St Source Corp. reported revenue of $514.4M.

Does SRCE pay dividends?

1St Source Corp. pays dividends, with $38.4M distributed to shareholders in the trailing twelve months.

Where can I find SRCE SEC filings?

Official SEC filings for 1St Source Corp. (CIK: 0000034782) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SRCE's EPS?

1St Source Corp. has a diluted EPS of $6.41.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SRCE a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, 1St Source Corp. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SRCE stock overvalued or undervalued?

Valuation metrics for SRCE: ROE of 12.4% (sector avg: 12%), net margin of 30.8% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.

Should I buy SRCE stock in 2026?

Our dual AI analysis gives 1St Source Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is SRCE's free cash flow?

1St Source Corp.'s operating cash flow is $223.1M, with capital expenditures of $10.1M. FCF margin is 41.4%.

How does SRCE compare to other Finance stocks?

Vs Finance sector averages: Net margin 30.8% (avg: 25%), ROE 12.4% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2025-12-31 | Powered by Claude AI