1st Source Corporation (SRCE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-30.2%

$62.24

vs $89.22 price

Levered DCF

$95.28

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

-0.29

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.67×	10.89×	10.92×	10.97×	10.55×	12.71×	14.53×	12.77×
P/B	1.2×	1.29×	1.37×	1.52×	1.36×	1.16×	1.6×	1.37×
P/S	2.54×	2.51×	2.67×	3.4×	3.5×	2.8×	3.46×	2.95×
EV / EBITDA	8.3×	9.15×	9.44×	8.69×	8.37×	8.92×	9.77×	9.17×
Gross margin	70.3%	65.7%	71.6%	88.7%	96.1%	80.0%	80.5%	82.3%
Operating margin	34.2%	30.0%	31.9%	40.7%	43.6%	29.0%	31.3%	29.6%
Net margin	26.4%	23.3%	24.6%	31.3%	33.4%	22.2%	23.9%	23.3%
Current ratio	12.62×	0.14×	0.23×	0.31×	0.31×	0.25×	0.24×	0.23×
Debt / equity	0.27×	0.29×	0.4×	0.35×	0.34×	0.31×	0.31×	0.41×
Interest coverage	1.23×	0.93×	1.17×	5.17×	8.54×	2.86×	2.04×	2.42×
Dividend yield	2.5%	2.5%	2.4%	2.4%	2.5%	2.9%	2.2%	2.5%
Payout ratio	24.3%	26.7%	26.5%	26.6%	26.4%	36.5%	31.6%	31.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.4%	11.9%	12.6%	13.9%	12.9%	9.2%	11.1%	10.8%
Return on invested capital	8.6%	7.8%	7.4%	9.7%	9.1%	6.7%	8.2%	7.5%
Return on assets	1.7%	1.5%	1.4%	1.4%	1.5%	1.1%	1.4%	1.3%
Free cash flow yield	14.0%	12.7%	13.5%	13.2%	13.2%	14.7%	11.6%	13.0%
Earnings yield	10.4%	9.3%	9.2%	9.2%	9.5%	7.9%	6.9%	7.9%
Enterprise value	$1.8B	$1.7B	$1.7B	$1.5B	$1.5B	$1.2B	$1.5B	$1.3B
Net debt / EBITDA	1.25×	1.35×	1.81×	1.24×	1.43×	1.43×	1.23×	1.58×
Cash conversion cycle (days)	0	0	0	360	277	287	217	164