Southern Michigan Bancorp, Inc (SOMC) Fair Value & Analysis

Financial Services · US · Market cap $144M

A solid business, screening 11% undervalued on our models.

What matters now

• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
• Our model range runs from $26.43 (bear) to $44.04 (bull), base $35.23. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 53/100 (solid quality) with high evidence: the data supports the verdict.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $10.40 – $32.00 · fair‑value band $26.43 – $44.04 · the $31.75 price screens below the $35.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

Southern Michigan Bancorp, Inc (SOMC) currently trades at $31.75, while our model-based Fair Value estimate is $35.23, implying the stock looks roughly 11.0% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Southern Michigan Bancorp, Inc generated revenue of $55.5M at a net margin of 22.5%. Revenue grew 11.1% year over year. It earns a return on equity of 10.7%. Net debt stands at $24.6M. Fundamentals as of Jul 27, 2026

Our scenario range runs from $26.43 (bear case) to $44.04 (bull case); at $31.75, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 63% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 11%, SOMC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($35.23) versus Dividend Discount ($7.14). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Southern Michigan Bancorp, Inc. operates as the bank holding company for Southern Michigan Bank & Trust that provides a range of commercial banking services to individuals, businesses, institutions, and government agencies primarily in the southwest and south-central Michigan communities.

Full company description

Southern Michigan Bancorp, Inc. operates as the bank holding company for Southern Michigan Bank & Trust that provides a range of commercial banking services to individuals, businesses, institutions, and government agencies primarily in the southwest and south-central Michigan communities. Its deposit products include interest and non-interest checking, savings, and various types of money market accounts; time, savings, and demand deposits; and certificates of deposit. The company also provides home mortgages and equity loans, home equity lines of credit, and auto/personal loans; business loans, such as lines of credit, term loans, commercial real estate loans, commercial and industrial loans, agriculture loans, letters of credit, small business administration loans, and capital access loans; industrial, construction, real estate, and inventory loans; and consumer lending products comprising direct and indirect loans to purchasers of residential real property and consumer goods. In addition, it offers trust and investment services that include investment management, trustee, IRA rollovers and retirement plans, institutional and personal custody, estate settlement, wealth management, estate and wealth transfer planning assistance, charitable gift planning assistance, and cash management custody services, as well as safe deposit box and automated teller machine services. Further, the company provides treasury services, such as cash management, ACH services, business bill pay, e-statements, merchant services, payroll cards, positive pay, remote deposit capture, and wire transfers, as well as ATM, debit, credit, pay, prepaid, and gift cards; municipal, online, and mobile banking; life insurance; and bill payment and fraud protection services. The company was founded in 1871 and is based in Coldwater, Michigan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Southern Michigan Bancorp, Inc reported revenue of $93.2M in FY2025 versus $46.1M in FY2021, a compound +19.2%/yr. Reported net income was $12.2M in FY2025, compounding +1.0%/yr from FY2021.

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Peer Group

Banks - Regional · 1083 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Banks - Regional median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.