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German American Bancorp has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
German American Bancorp Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate German American Bancorp's interest coverage with the available data.
German American Bancorp's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.35.
Altman Z-Score does not apply to banks and insurance companies.
German American Bancorp (NAS:GABC) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
German American Bancorp has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
German American Bancorp Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
German American Bancorp (GABC) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on German American Bancorp and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, German American Bancorp's Financial Strength has ranged from 3.00 to 5.00.
Is German American Bancorp's Financial Strength too high?
German American Bancorp's current Financial Strength of 3 is 25% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. Overall, German American Bancorp has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does German American Bancorp's Financial Strength compare to CASH and RBCAA?
German American Bancorp's Financial Strength of 3 can be compared against companies in the Banks industry. Historically, German American Bancorp's own Financial Strength has ranged from 3.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on German American Bancorp and its competitors. German American Bancorp's current Financial Strength is 3, which is 25% below median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is German American Bancorp stock overvalued right now?
Based on GuruFocus' analysis, German American Bancorp (GABC) is currently considered Fairly Valued. The stock's GF Value™ is $46.31, compared to a current price of $49.58 — trading 7.1% above its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. German American Bancorp's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For German American Bancorp (GABC), the current Financial Strength is 3 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 German American Bancorp (GABC) Overvalued in 2026?
Based on GuruFocus' analysis, German American Bancorp stock appears to be overvalued.
The current stock price of $49.58 is trading 7.1% above its estimated GF Value™ of $46.31.
GuruFocus considers German American Bancorp to be Fairly Valued.
Key valuation signals for GABC:
Financial Strength: 3 (25% below median its 10-year median of 4.00)
GF Value™: $46.31 vs. price of $49.58 (7.1% above fair value)
No single metric tells the full story. See the GABC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
German American Bancorp Inc is a bank holding company. The lines of business include the core banking segment and the wealth management segment. The core banking segment involves attracting deposits from the general public and using those funds to originate consumer, commercial, and agricultural real estate, and residential mortgage loans. These core banking activities also include the sale of residential mortgage loans in the secondary market. Wealth management services, which involve providing trust, investment advisory, brokerage, and retirement planning services to customers. The company generates the majority of its revenue from the core banking segment.
61GF Score
Get the complete analysis for GABC
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