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SRCE1st Source Corporation
$84.38$2.0B
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  4. Financial Ratios

1st Source Corporation (SRCE) Financial Ratios

Latest Ratios: P/E Ratio 13.1x · EV/EBITDA 10.8x · ROE 12.7%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SRCE Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.0B$1.5B$1.4B$1.4B$1.3B$1.2B$1.0B$1.3B$1.0B$1.3B$1.2B
Enterprise Value$2.3B$1.8B$1.7B$1.7B$1.5B$1.5B$1.2B$1.5B$1.3B$1.5B$1.5B
P/E Ratio →13.069.6710.8910.9210.9710.5512.7114.5312.7719.0220.12
P/S Ratio4.683.513.693.663.693.693.124.093.364.514.47
P/B Ratio1.561.161.211.271.421.281.111.571.371.781.72
P/FCF9.537.157.887.437.577.586.788.627.7214.5319.58
P/OCF9.106.837.377.207.477.456.668.076.559.1811.79

P/E links to full P/E history page with 30-year chart

SRCE EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—4.144.344.534.314.453.724.674.075.395.89
EV / EBITDA10.768.399.159.448.698.378.929.779.1711.5012.95
EV / EBIT11.238.769.8110.349.759.6611.5212.6412.0415.1217.08
EV / FCF—8.439.259.198.839.138.089.869.3317.3725.79

SRCE Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin70.3%70.3%65.7%71.6%88.7%96.1%80.0%80.5%82.3%88.5%90.0%
Operating Margin34.2%34.2%30.0%31.9%40.7%43.6%29.0%31.3%29.6%32.6%31.8%
Net Profit Margin26.4%26.4%23.3%24.6%31.3%33.4%22.2%23.9%23.3%21.9%20.6%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE12.7%12.7%11.8%12.5%12.7%12.5%9.2%11.4%11.1%9.8%8.8%
ROA1.8%1.8%1.5%1.5%1.5%1.5%1.2%1.4%1.4%1.2%1.1%
ROIC9.7%9.7%8.6%9.0%9.4%9.4%6.9%8.3%7.4%7.1%6.4%
ROCE4.0%4.0%12.1%13.4%14.7%14.3%10.4%12.8%12.1%12.3%11.4%

SRCE Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.260.260.280.370.330.320.290.300.410.450.63
Debt / EBITDA1.591.591.772.241.721.731.971.662.272.433.62
Net Debt / Equity—0.210.210.300.240.260.210.230.290.350.54
Net Debt / EBITDA1.271.271.351.811.241.431.431.231.581.883.12
Debt / FCF—1.271.371.761.261.561.301.241.612.846.21
Interest Coverage1.231.230.931.175.178.542.862.042.423.794.03

SRCE Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio12.6212.620.140.230.310.310.250.240.230.220.22
Quick Ratio12.6212.620.140.230.310.310.250.240.230.220.22
Cash Ratio0.550.550.010.010.010.010.010.010.020.010.01
Asset Turnover—0.070.060.060.050.040.050.060.060.050.05
Inventory Turnover———————————
Days Sales Outstanding———————————

SRCE Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.9%2.5%2.5%2.4%2.4%2.5%2.9%2.2%2.5%1.6%1.7%
Payout Ratio24.3%24.3%26.7%26.5%26.6%26.4%36.5%31.6%31.2%30.0%33.6%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield7.7%10.3%9.2%9.2%9.1%9.5%7.9%6.9%7.8%5.3%5.0%
FCF Yield10.5%14.0%12.7%13.5%13.2%13.2%14.7%11.6%13.0%6.9%5.1%
Buyback Yield0.7%0.9%0.0%0.9%0.5%2.7%0.6%1.1%0.9%0.0%0.7%
Total Shareholder Yield2.6%3.4%2.5%3.4%3.0%5.2%3.5%3.3%3.3%1.6%2.4%
Shares Outstanding—$24M$24M$25M$25M$25M$26M$26M$26M$26M$26M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrong
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

Rate-driven margin compression

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Premium Priced for Niche Strength

At 1.66x tangible book, SRCE trades at a premium to regional peers, reflecting its specialty finance moat and consistent returns, as per the latest valuation data.

The P/B of 1.66x is above the peer median of roughly 1.35x, suggesting the market already ascribes value to the bank's niche underwriting capabilities and stable deposit franchise. However, the forward P/E of 12.39x implies only modest earnings growth expectations, which may understate the potential from the specialty portfolio. Investors should monitor whether the premium is justified by sustained ROTCE above peer levels.

ROE Expansion on Fee and NIM Stability

ROE improved to 3.6% in 2026Q2 from 2.7% a year earlier, driven by stable NIM and rising fee income, according to the latest quarterly report.

The DuPont decomposition shows that ROE gains are coming from both improved asset utilization (ROA up to 0.5%) and a higher fee contribution (16.0% of revenue), while leverage remains conservative at 0.15 equity-to-assets. This suggests profitability quality is high, as it is not reliant on excessive leverage or one-time gains. The efficiency ratio of 35.7% indicates strong cost control, but the sustainability of the fee stream depends on trust AUM and equipment leasing gains, which can be volatile.

NIM Stability Defies Rate Pressure

Net interest margin held at 1.0% in 2026Q2, unchanged from the prior quarter, despite a high-rate environment, as reported in the latest financial statements.

The stability in NIM suggests that the bank's low-cost deposit base is effectively offsetting rising funding costs, but this may be temporary if deposit betas accelerate. The efficiency ratio improved to 35.7%, reflecting strong revenue growth outpacing expenses, which provides operating leverage. However, the margin remains thin, and any significant increase in deposit costs could compress it, especially if loan yields plateau.

Capital Ratios Strengthen on Retained Earnings

Equity-to-assets improved to 0.15 in 2026Q2 from 0.13 a year earlier, reflecting strong internal capital generation, based on reported balance sheet data.

The improving capital position provides a buffer for potential credit losses and supports the bank's conservative dividend policy. With a dividend yield of 1.8% and no buybacks, the bank appears to prioritize capital retention over aggressive return, which may limit ROE growth but enhances resilience. The low debt-to-equity ratio of 0.26% further underscores a fortress-like balance sheet, though it may also indicate under-leveraging of the specialty finance book.

Provision Volatility Masks Stable Credit

Loan loss provision swung from $7.3M in 2026Q1 to $1.5M in 2026Q2, yet net charge-offs remained minimal, reflecting the resilience of the specialty portfolio, as per the latest earnings release.

The sharp reduction in provisions suggests that the earlier spike was likely due to specific reserve builds rather than a broad deterioration in credit quality. The bank's niche collateral, such as funeral cars and step vans, appears to have stable recovery values, but the secondary market for aircraft and trucks remains a risk. Investors should monitor whether the low provision level is sustainable or if it reflects timing that could reverse.

P/E Misleads on Provision Timing

The P/E ratio of 13.89x is distorted by volatile provisions, which swung from $7.3M to $1.5M in consecutive quarters, obscuring underlying earnings power, as reported in the latest financial statements.

For banks with specialty leasing, P/E can be misleading because provision expenses are lumpy and not indicative of core profitability. A better metric is P/TBV combined with ROTCE, which smooths out credit cost volatility and focuses on the bank's ability to generate returns on tangible equity. SRCE's P/TBV of 1.66x and improving ROTCE suggest the market is pricing in a quality franchise, but investors should adjust for provision normalization to assess true valuation.

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Includes 30+ ratios · 30 years · Updated daily

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SRCE — Frequently Asked Questions

Quick answers to the most common questions about buying SRCE stock.

What is 1st Source Corporation's P/E ratio?

1st Source Corporation's current P/E ratio is 13.1x. The historical average is 16.1x. This places it at the 37th percentile of its historical range.

What is 1st Source Corporation's EV/EBITDA?

1st Source Corporation's current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.

What is 1st Source Corporation's ROE?

1st Source Corporation's return on equity (ROE) is 12.7%. The historical average is 10.2%.

Is SRCE stock overvalued?

Based on historical data, 1st Source Corporation is trading at a P/E of 13.1x. This is at the 37th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is 1st Source Corporation's dividend yield?

1st Source Corporation's current dividend yield is 1.87% with a payout ratio of 24.3%.

What are 1st Source Corporation's profit margins?

1st Source Corporation has 70.3% gross margin and 34.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does 1st Source Corporation have?

1st Source Corporation's Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.