Stock fact sheet · data as of
1st Source Corporation (SRCE): fair value, margin of safety and Wheel Score
Ticker symbol SRCE · Financial Services · Banks - Regional · United States · Blend Quality
Is SRCE undervalued?
At 89.21 (close of 5 Nov 2026), SRCE trades 19% under the GLS average fair value of 109.80. 5 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS scan; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between Lynch (20.56) and Payback Time (252.16). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for SRCE, so the nightly engine files it under Blend (value score 55, growth score 45, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for SRCE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 62.31 | -30% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 95.50 | +7% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 101.69 | +14% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 20.56 | -77% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 110.70 | +24% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 237.63 | +166% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 252.16 | +183% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 25.46 | -71% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 82.20 | -8% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -255.16 | -386% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 96.00 | +8% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
1st Source Corporation scores 9 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 8.4/10 puts SRCE among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are moderate - ROIC 9.8%, ROE 12.4%, ROA 1.7% - with debt at 0.27 times equity and a free-cash-flow yield of 10.8%.
The dividend yield is 1.94% at a payout ratio of 24%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Fiduciary and Trust 48%, Debit Card 29%, Deposit Account 23% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 9 / 9 | ROIC | 9.8% |
|---|---|---|---|
| GLS Moat | 8.4 / 10 | ROE | 12.4% |
| Debt / equity | 0.27 | ROA | 1.7% |
| Free-cash-flow yield | 10.8% | Payout ratio | 24% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 43: Weak
With a Wheel Score of 43 1st Source Corporation sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (296 open interest, 228 a day); Option trading (weak) is its weakest part.
Implied volatility is 26% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 296 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 154k shares a day on a market cap of $2.1B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (296 open interest, 228 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Good | 19% below fair value | |
| Premium | Fair | implied volatility 26% | |
| Moat | Strong | moat 8.4/10 | |
| Health | Strong | Piotroski 9/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Weak | 228 contracts a day, 296 open interest | |
| Stability | Fair | beta 0.56, $2.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 21 Jan 2027, 77 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to 1st Source Corporation by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HTH Hilltop Holdings Inc. | 37.68 | 41.55 | +9% | 37Weak | $2.2B |
| FCF First Commonwealth Financial Corporation | 21.51 | 25.39 | +15% | 44Weak | $2.2B |
| OFG OFG Bancorp | 51.51 | 60.38 | +15% | 76Good | $2.2B |
| WAFDP WaFd, Inc. | 14.73 | 33.91 | +57% | 34No options | $2.1B |
| NTB The Bank of N.T. Butterfield & Son Limited | 55.49 | 117.94 | +53% | 55Fair | $2.2B |
| BUSEP First Busey Corporation | 25.54 | 32.15 | +21% | 22No options | $2.1B |
| WAFD WaFd, Inc. | 30.13 | 45.47 | +34% | 48Weak | $2.2B |
| FIISO Financial Institutions, Inc. 8.48% SRB1 PFD B | 105.89 | 74.82 | -42% | 16No options | $2.1B |
| CHCO City Holding Company | 144.54 | 140.93 | -3% | 35Weak | $2.0B |
| EFSC Enterprise Financial Services Corp | 63.87 | 64.59 | +1% | 36Weak | $2.3B |
| BBAR Banco BBVA Argentina S.A. | 11.18 | 99.28 | +89% | 79Good | $2.3B |
| EFSCP Enterprise Financial Services Corp | 16.34 | 33.30 | +51% | 35No options | $2.3B |
⚖ Compare SRCE with 7 of them All Financial Services stocks →
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SRCE
Is SRCE undervalued right now?
By the GLS models, moderately: at 89.21 the stock trades 19% below the average fair value of 109.80 (data as of 5 Nov 2026).
What is the Wheel Score of SRCE and what does it mean?
SRCE scores 43 out of 100 (Weak) - it fails Wheel Trade Filter 1. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for SRCE?
109.80 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does 1st Source Corporation report earnings next?
The next earnings report is due on 21 Jan 2027, 77 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does SRCE have listed options, and how liquid are they?
Yes. The nightly snapshot found 52 listed contracts with 296 open interest across all expiries and implied volatility of 26% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.