1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
SRBK
Listed on
2023-09-20
Sector
Financials
Subsector
Banks
Offer Price
$10.00
Shares Offered
9.06M
9.51M
$95.1M
95.2%
Implied Upside vs Midpoint
Description
SR Bancorp, Inc. (“SR Bancorp”) is a new Maryland corporation that was formed by Somerset Savings Bank, SLA (“Somerset Savings Bank”) to be the holding company of Somerset Savings Bank upon completion of its conversion from the mutual to stock form of organization. SR Bancorp has had no operations to date and has never issued any capital stock. This stock offering is being made by SR Bancorp. Upon completion of the conversion and related stock offering, SR Bancorp will own all of Somerset Savings Bank’s capital stock. Somerset Savings Bank is a New Jersey-chartered mutual savings association that operates from seven branches in Hunterdon, Middlesex and Somerset Counties, New Jersey. Somerset Savings Bank offers a variety of deposit and loan products to individuals and small businesses, most of which are located in our primary market. The acquisition of Regal Bancorp, Inc. (“Regal Bancorp”) and its wholly owned subsidiary, Regal Bank, will expand our market presence into Essex, Morris and Union Counties, New Jersey and enhance our market presence in Somerset County, New Jersey. At March 31, 2023, Somerset Savings Bank had total assets of $664.9 million, deposits of $517.0 million and total equity of $119.1 million. As part of this transaction, Somerset Savings Bank will convert its charter to a New Jersey-chartered commercial bank. Our executive offices are located at 220 West Union Avenue, Bound Brook, New Jersey 08805. Our telephone number at this address is (732) 560-1700. Our website address is www.somersetsavings.com.
▼ More expensive than its peers on 2 of 2 valuation measures
| Metric | Value | Peer median | Among peers | |
|---|---|---|---|---|
EV / revenue | 4.5x | 2.6x | ||
Price / earnings | 50.8x | 25.1x | ||
Net margin | 14.1% | 17.3% | ||
Free cash flow margin | 5.3% | 11.2% | ||
Net cash / market cap | 37.2% | 40.1% | ||
Debt / equity | 0.00 | 0.00 | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2023-03-13 | S-1 | — | $10.00 | 1,146,810 | $11.5M |
| 2023-06-09 | S-1/A | — | $10.00 | 1,140,277 | $11.4M |
| 2023-07-10 | S-1/A | — | $10.00 | 1,140,277 | $11.4M |
| 2023-07-21 | 424B3 | — | $10.00 | 1,140,277 | $11.4M |
| 2023-07-21 | 424B3 | — | $10.00 | 9,200,000 | $92.0M |
SR Bancorp, Inc. income statement and balance sheet, FY Jun 2023 to FY Jun 2026, as reported in SEC filings.
| Metric | FY Jun 2023 | FY Jun 2024after listing | FY Jun 2025after listing | FY Jun 2026after listing |
|---|---|---|---|---|
| Net income | $1.6M | ($10.9M) | $5.1M | $3.4M |
| Metric | FY Jun 2023 | FY Jun 2024after listing | FY Jun 2025after listing | FY Jun 2026after listing |
|---|---|---|---|---|
| Total assets | $651M | $1.0B | $1.1B | $1.2B |
| Total liabilities | $529M | $821M | $893M | $1.0B |
| Total equity | $122M | $199M | $194M | $182M |
| Cash & equivalents | $42.4M | $45.9M | $57.8M | $71.5M |