In Focus – SRCE

Determining the best stocks to buy now can only be achieved with a thorough examination of each and every single stock of interest. The purpose of this report is to present our findings of our firm’s thorough analysis of 1st Source Corporation.

Background

1st Source Corporation (SRCE) is a bank holding company that, through its subsidiaries, offers commercial and consumer banking services, trust and investment management services, and insurance products to individual and business clients throughout 17 counties in the Indiana and Michigan region.

It provides many of the standard services of the best regional banks. It offers checking accounts, savings programs, online banking, home equity loans and lines of credit, safe deposit facilities, ATM, debit and credit card facilities, and brokerage services. SRCE operates through 80 banking centers, and it is headquartered in South Bend, Indiana.

Stock Fundamentals

SRCE has many admirable qualities. For a small bank, it has relatively little leverage. We consider its overall financial strength to be at least average (and probably a little higher).

SRCE has been consistently profitable for at least eight years. This is probably why it never cut its dividend during or after the Great Recession. And it has grown its dividend steadily since. SRCE has been able to achieve at least modestly high numbers on most of the other metrics we study to determine a firm’s efficiency.

Our main problem with SRCE is its price. For a bank (especially a small bank) it sells at fairly high price multiples. Even relative to its historical price multiples, SRCE appears priced a little on the high side. Its overall fundamentals are only average. And we would not consider this company one of the best stocks to buy now.

Stat Sheet – 1st Source Corporation 4/22/16

Ticker SRCE
Industry  Regional Banks
Price $ 33.63
Market Cap  $ 880
Dividend Yield 2.14
Dividend/CFOp 0.207
Equity/Assets 0.125
Average Equity/Assets 0.116
Financial Strength Average
Growth Prospects Below Average
Beta 0.98
Price Volatility Average
Stock Fundamentals C

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)

If you would like to see the research we make available to sort through all the stocks we cover, click the link below.

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If you would like to see why we have a penchant for the best dividend stocks, click the link below.

Why the Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – SRCE

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