📊 BSRR Key Takeaways
Is Sierra Bancorp (BSRR) a Good Investment?
Sierra Bancorp exhibits a troubling disconnect between strong revenue growth (+37.5% YoY) with exceptional margins and fundamentally weak returns. Net income is flat YoY despite margin expansion, while ROE of 3.4% and ROA of 0.3% are critically below banking industry standards, indicating poor capital deployment. The tight 1.5x interest coverage ratio limits financial flexibility.
Sierra Bancorp shows solid core fundamentals with strong operating and net margins, healthy returns on assets and equity, and positive free cash flow generation. Balance sheet leverage appears conservative, but the quality of recent growth is mixed because revenue expanded sharply while net income was flat, suggesting margin pressure, higher funding costs, or elevated credit costs may be offsetting top-line gains.
Sierra Bancorp Key Strengths (BSRR)
- Strong revenue growth of +37.5% YoY demonstrates market traction and business expansion
- Exceptional profitability margins: 40.6% operating margin and 30.4% net margin indicate pricing power and cost control
- Conservative capital structure with low debt-to-equity ratio of 0.14x and $156.4M cash provides financial stability
- Strong profitability profile with 32.9% operating margin, 24.7% net margin, 1.1% ROA, and 11.6% ROE
- Conservative leverage and solid financial health, with debt/equity of 0.14x and relatively low long-term debt versus equity
- Positive cash generation, including $33.70M in operating cash flow and $32.17M in free cash flow
BSRR Stock Risks: Sierra Bancorp Investment Risks
- Net income completely flat YoY despite robust revenue growth signals deteriorating earnings quality and operational inefficiency
- Return on equity of 3.4% and return on assets of 0.3% are severely depressed relative to banking sector norms (8-12% ROE typical), indicating poor capital productivity
- Interest coverage ratio of 1.5x is dangerously low, providing minimal cushion for adverse conditions and constraining financial flexibility
- Revenue growth did not convert into net income growth, which raises questions about earnings quality and cost pressure
- Interest coverage of 5.0x is adequate but not especially strong if funding costs remain elevated
- Key banking risks such as credit quality deterioration, loan loss provisioning, and deposit mix pressure are not visible in the provided data
Key Metrics to Watch
- Net income growth rate - must accelerate to track revenue growth and eliminate quality concerns
- Return on equity trajectory - needs sustained improvement toward 8%+ minimum to be competitive
- Interest coverage ratio - critical indicator of debt sustainability and operational margin health
- Net interest margin and deposit funding costs
- Credit quality trends, including nonperforming loans and loan loss provisions
Sierra Bancorp (BSRR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BSRR Profit Margin, ROE & Profitability Analysis
BSRR vs Finance Sector: How Sierra Bancorp Compares
How Sierra Bancorp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sierra Bancorp Stock Overvalued? BSRR Valuation Analysis 2026
Based on fundamental analysis, Sierra Bancorp has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sierra Bancorp Balance Sheet: BSRR Debt, Cash & Liquidity
BSRR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sierra Bancorp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.36 reflects profitable operations.
BSRR Revenue Growth, EPS Growth & YoY Performance
Sierra Bancorp Dividends, Buybacks & Capital Allocation
BSRR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sierra Bancorp (CIK: 0001130144)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BSRR
What is the AI rating for BSRR?
Sierra Bancorp (BSRR) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BSRR's key strengths?
Claude: Strong revenue growth of +37.5% YoY demonstrates market traction and business expansion. Exceptional profitability margins: 40.6% operating margin and 30.4% net margin indicate pricing power and cost control. ChatGPT: Strong profitability profile with 32.9% operating margin, 24.7% net margin, 1.1% ROA, and 11.6% ROE. Conservative leverage and solid financial health, with debt/equity of 0.14x and relatively low long-term debt versus equity.
What are the risks of investing in BSRR?
Claude: Net income completely flat YoY despite robust revenue growth signals deteriorating earnings quality and operational inefficiency. Return on equity of 3.4% and return on assets of 0.3% are severely depressed relative to banking sector norms (8-12% ROE typical), indicating poor capital productivity. ChatGPT: Revenue growth did not convert into net income growth, which raises questions about earnings quality and cost pressure. Interest coverage of 5.0x is adequate but not especially strong if funding costs remain elevated.
What is BSRR's revenue and growth?
Sierra Bancorp reported revenue of $41.2M.
Does BSRR pay dividends?
Sierra Bancorp pays dividends, with $3.4M distributed to shareholders in the trailing twelve months.
Where can I find BSRR SEC filings?
Official SEC filings for Sierra Bancorp (CIK: 0001130144) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BSRR's EPS?
Sierra Bancorp has a diluted EPS of $0.96.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BSRR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Sierra Bancorp has a B grade with 66% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BSRR stock overvalued or undervalued?
Valuation metrics for BSRR: ROE of 3.4% (sector avg: 12%), net margin of 30.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is BSRR's AI grade for 2026?
Our dual AI analysis gives Sierra Bancorp a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BSRR's free cash flow?
Sierra Bancorp's operating cash flow is $11.1M, with capital expenditures of $83.0K. FCF margin is 26.7%.
How does BSRR compare to other Finance stocks?
Vs Finance sector averages: Net margin 30.4% (avg: 25%), ROE 3.4% (avg: 12%), current ratio N/A (avg: 1.2).