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1st SourceSRCE -0.12%66 Net Margin % is 40.24% as of Jun. 2026, which is 30% above its 10-year median of 31.07. GuruFocus rates SRCE with a GF Score™ of 66/100 and a GF Value™ of $69.87 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,526 Banks companies, 1st Source ranks better than 80.6% on this metric.
Net margin is calculated as Net Income divided by its Revenue. 1st Source's Net Income for the
three
months ended in Jun. 2026 was $47.5 Mil. 1st Source's Revenue for the
three
months ended in Jun. 2026 was $118.2 Mil. Therefore, 1st Source's net margin for the quarter that ended in Jun. 2026 was 40.24%.
The historical rank and industry rank for 1st Source's Net Margin % or its related term are showing as below:
SRCE'
s Net Margin % Range Over the Past 10 Years
Min: 22.35 Med: 31.07 Max: 37.75
Current: 37.75
SRCE's Net Margin % is ranked better than 80.6% of 1526
companies
in the Banks industry
Industry Median: 27.07
vs SRCE: 37.75
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
1st Source Net Margin % Related Terms
1st Source Net Margin % Historical Data
* Premium members only.
The historical data trend for 1st Source's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, 1st Source's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
1st Source Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, 1st Source's Net Margin % distribution charts can be found below:
* The bar in red indicates where 1st Source's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
1st Source (SRCE) has a Net Margin % of 40.24% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on 1st Source and its competitors. This is 30% above median its historical median of 31.07. Over the past decade, 1st Source's Net Margin % has ranged from 22.35 to 37.75. According to the industry distribution chart, 1st Source ranks #296 out of 1526 companies in the Banks industry, placing it in the top 19.4%.
Is 1st Source's Net Margin % too high?
1st Source's current Net Margin % of 40.24% is 30% above median its 10-year median of 31.07. Over the past 10 years, this metric has ranged from a low of 22.35 to a high of 37.75. The Banks industry median Net Margin % is 27.07. 1st Source's value of 40.24% is 48.7% above this industry median. Based on the distribution chart, 1st Source ranks #296 out of 1526 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, 1st Source has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does 1st Source's Net Margin % compare to HAPN and FCF?
According to the Banks industry distribution chart, 1st Source ranks #296 out of 1526 companies for Net Margin %. This places 1st Source in the top 19% of its industry — outperforming the majority of peers. The industry median Net Margin % is 27.07. 1st Source's value of 40.24% is 48.7% above this benchmark. Historically, 1st Source's own Net Margin % has ranged from 22.35 to 37.75 over the past decade. While the company's 10-year median is 31.07 vs. the industry median of 27.07, 1st Source has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 27.07, based on 1,526 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 1st Source's current Net Margin % of 40.24% is 48.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on 1st Source and its competitors. For the Banks industry, the median Net Margin % is 27.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 1st Source's current Net Margin % is 40.24%, which is 30% above median its own 10-year median of 31.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 1st Source stock overvalued right now?
Based on GuruFocus' analysis, 1st Source (SRCE) is currently considered Modestly Overvalued. The stock's GF Value™ is $69.87, compared to a current price of $89.69 — trading 28.4% above its estimated fair value. The current Net Margin % is 40.24%, which is 30% above median its 10-year median of 31.07 and 48.7% above the Banks industry median of 27.07. 1st Source's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For 1st Source (SRCE), the current Net Margin % is 40.24% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is 1st Source (SRCE) Overvalued in 2026?
Based on GuruFocus' analysis, 1st Source stock appears to be overvalued.
The current stock price of $89.69 is trading 28.4% above its estimated GF Value™ of $69.87.
GuruFocus considers 1st Source to be Modestly Overvalued.
Key valuation signals for SRCE:
Net Margin %: 40.24% (30% above median its 10-year median of 31.07)
GF Value™: $69.87 vs. price of $89.69 (28.4% above fair value)
Industry Position: 48.7% above the Banks median (#296 of 1526)
No single metric tells the full story. See the SRCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
1st Source Corp provides specialized financing services for construction equipment, aircraft, and vehicle types through its Specialty Finance activities. The company offers commercial, small business, agricultural, and real estate loans, along with commercial leasing, treasury management, and payment services, including Fedwires, ACH, and merchant services. It also provides Renewable Energy Financing for commercial solar projects, a full range of consumer banking products, Trust and Wealth Advisory Services, and insurance products. The company operates in the commercial banking segment, which provides commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients across its markets.
66GF Score
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