SR Bancorp Inc. Common stock (SRBK)

FairStock Score: 22/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a bank, SR Bancorp must be judged on book value, returns on equity, and credit risk, not industrial cash flow. At $18.68 on 2026-10-13, the market capitalization is $148.2M, and FairStock calculates P/B of 0.75 and P/E of 42.45. That combination tells the story: the stock sells below accounting net assets, but earnings are tiny relative to the price. Filed results show FY2026 net income of $3.4M, or $0.44 per diluted share, down from FY2025's $5.1M and $0.61. Yet the latest quarter improved: in fiscal Q3 2026, the quarter ended 2026-03-31, net income was $886,000, or $0.12 per diluted share, versus $537,000 and $0.06 in fiscal Q3 2025. The prior two quarters were also profitable. This is a small turnaround from the FY2024 net loss of $10.9M and -$1.59 per share. The FairStock ROE is only 1.79% and ROCE 0.29%, so book value is not compounding at an attractive rate. A 0.59 beta and 1.29% dividend yield suggest low volatility and modest income, but neither creates a moat. The business has no visible competitive advantage; it is a 115-employee community bank. The critical missing data are CET1, net interest margin, credit costs, and loan-loss reserves. Without those, I cannot judge underwriting. At 0.75 times book, optimism is priced in only modestly, but the 42 P/E and weak returns demand evidence that the turnaround lifts ROE durably. Until then, I see a fair-to-fully valued turnaround, not a high-quality bargain.

In plain English: SR Bancorp is the holding company for Somerset Regal Bank, a small regional bank serving individuals, businesses, and local municipalities. It lost money a couple of years ago, has returned to modest profits, and its latest quarter showed more earnings than a year earlier. The stock trades below the accounting value of its net assets, but profits are thin, so the price looks inexpensive relative to assets yet not clearly cheap relative to earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer