Here is why 1st Source (NASDAQ:SRCE) can still attract shareholders

1st Source Market Capitalization is projected to increase significantly based on the last few years of reporting. The past year's Market Capitalization was at 1.04 Billion. The current year Calculated Tax Rate is expected to grow to 32.39, whereas Revenue Per Employee is forecasted to decline to about 262.4 K. While many traders today are more concerned about the preservation of capital over market returns, 1st Source could be one exception. We will evaluate why recent 1st Source price moves suggest a bounce in February. In this post, I will also go over a few different drivers affecting 1st Source's products and services, and explain how it may impact 1st Source shareholders.
Published over a year ago
View all stories for 1st Source | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Gabriel Shpitalnik

1st Source advice module can be used to check and cross-verify current investment recommendation provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at the time.
The performance of 1st Source in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence 1st Source's stock prices. When investing in 1st Source, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, 1st Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as 1st Source carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of 1st Source earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. 1st Source dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. 1st one year expected dividend income is about USD0.97 per share.
At present, 1st Source's Dividend Paid And Capex Coverage Ratio is projected to increase significantly based on the last few years of reporting.
Last ReportedProjected for Next Year
Dividends Paid33.1 M34.7 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.26  0.24 
Dividend Paid And Capex Coverage Ratio 6.94  12.82 
Investing in dividend-paying stocks, such as 1st Source is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in 1st Source must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for 1st Source. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is 1st Source's Liquidity

1st Source financial leverage refers to using borrowed capital as a funding source to finance 1st Source ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. 1st Source financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to 1st Source's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of 1st Source's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between 1st Source's total debt and its cash.

1st Source Gross Profit

1st Source Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing 1st Source previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show 1st Source Gross Profit growth over the last 10 years. Please check 1st Source's gross profit and other fundamental indicators for more details.

Is 1st Source valued correctly by the market?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. 1st Source has an asset utilization ratio of 5.31 percent. This indicates that the company is making $0.0531 for each dollar of assets. An increasing asset utilization means that 1st Source is more efficient with each dollar of assets it utilizes for everyday operations.
 2020 2021 (projected)
Share Based Compensation3.32 M3.69 M
Net Cash Flow from Operations148.15 M124.49 M

1st Source is likely to close below $43 next week

1st Source latest total risk alpha ascents over 0.13. 1st Source currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.28. However, we do advice investors to further question 1st Source expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On 1st Source

Although other companies in the banks—regional industry are either recovering or due for a correction, 1st Source may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take over nor exit any shares of 1st Source at this time. The 1st Source risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to 1st Source.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of 1st Source. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com