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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 57.8GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.0%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.42%
Trailing Yield
$3.42
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
40%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SIERRA BANCORP (BSRR) receives a "Hold" rating with a composite score of 54.7/100, ranked #1012 out of 4446 stocks. Key factor scores: Quality 58/100, Value 75/100, Momentum 56/100. This is quantitative analysis only — not investment advice.
SIERRA BANCORP (BSRR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SIERRA BANCORP Do?
Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. The company accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. Its loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans. The company also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers. As of December 31, 2021, it operated 35 full-service branches, an online branch, a loan production office, an agricultural credit center, and an SBA center. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California. SIERRA BANCORP (BSRR) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Kevin J. McPhaill and employs approximately 490 people, headquartered in PORTERVILLE, California. With a market capitalization of $450M, BSRR is one of the notable companies in the Financials sector.
SIERRA BANCORP (BSRR) Stock Rating — Hold (April 2026)
As of April 2026, SIERRA BANCORP receives a Hold rating with a composite score of 54.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BSRR ranks #1,012 out of 4,446 stocks in our coverage universe. Within the Financials sector, SIERRA BANCORP ranks #312 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BSRR Stock Price and 52-Week Range
SIERRA BANCORP (BSRR) currently trades at $36.22. The stock lost $0.36 (1.0%) in the most recent trading session. The 52-week high for BSRR is $38.60, which means the stock is currently trading -6.2% from its annual peak. The 52-week low is $22.42, putting the stock 61.6% above its annual trough. Recent trading volume was 37K shares, suggesting relatively thin trading activity.
Is BSRR Overvalued or Undervalued? — Valuation Analysis
SIERRA BANCORP (BSRR) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.61x, compared to the Financials sector average of 14.88x — a discount of 22%. The price-to-book ratio stands at 1.27x, versus the sector average of 1.22x. The price-to-sales ratio is 2.69x, compared to 0.90x for the average Financials stock. On an enterprise value basis, BSRR trades at 8.67x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, SIERRA BANCORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
SIERRA BANCORP Profitability — ROE, Margins, and Quality Score
SIERRA BANCORP (BSRR) earns a quality factor score of 58/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.0%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, SIERRA BANCORP reports gross margins of 0.0%. The operating margin is 31.0% (sector: 21.8%). Net profit margin stands at 23.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 1.0% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BSRR Debt, Balance Sheet, and Financial Health
SIERRA BANCORP has a debt-to-equity ratio of 950.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $220M. Cash and equivalents stand at $82M.
BSRR has a beta of 0.76, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SIERRA BANCORP is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
SIERRA BANCORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, SIERRA BANCORP reported revenue of $173M and earnings per share (EPS) of $3.14. Net income for the quarter was $40M. Gross margin was 0.0%. Operating income came in at $54M.
In FY 2025, SIERRA BANCORP reported revenue of $171M and earnings per share (EPS) of $3.14. Net income for the quarter was $42M. Revenue grew 13.1% year-over-year compared to FY 2024. Operating income came in at $56M.
In Q3 2025, SIERRA BANCORP reported revenue of $44M and earnings per share (EPS) of $0.73. Net income for the quarter was $10M. Revenue grew -1.9% year-over-year compared to Q3 2024. Operating income came in at $13M.
In Q2 2025, SIERRA BANCORP reported revenue of $43M and earnings per share (EPS) of $0.78. Net income for the quarter was $11M. Revenue grew -1.8% year-over-year compared to Q2 2024. Operating income came in at $14M.
Over the past 8 quarters, SIERRA BANCORP has demonstrated a growth trajectory, with revenue expanding from $43M to $173M. Investors analyzing BSRR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BSRR Dividend Yield and Income Analysis
SIERRA BANCORP (BSRR) currently pays a dividend yield of 3.4%. At this yield, a $10,000 investment in BSRR stock would generate approximately $$342.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning BSRR offers above-average income for its sector. With a net margin of 23.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
BSRR Momentum and Technical Analysis Profile
SIERRA BANCORP (BSRR) has a momentum factor score of 56/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 10/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BSRR vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing BSRR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BSRR vs S&P 500 (SPY) comparison to assess how SIERRA BANCORP stacks up against the broader market across all factor dimensions.
BSRR Next Earnings Date
No upcoming earnings date has been announced for SIERRA BANCORP (BSRR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BSRR? — Investment Thesis Summary
SIERRA BANCORP presents a balanced picture with arguments on both sides. The value score of 75/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 79/100) reduces downside risk.
In summary, SIERRA BANCORP (BSRR) earns a Hold rating with a composite score of 54.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BSRR stock.
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Institutional Research Dossier
SIERRA BANCORP (BSRR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Sierra Bancorp (BSRR). While the company exhibits strong profitability metrics and trades at a discount to its sector on several valuation multiples, its relatively weak revenue growth and high debt-to-equity ratio temper our enthusiasm. The bank's reliance on the California market also introduces geographic concentration risk, warranting a cautious approach.
BSRR's attractive valuation and superior profitability compared to the sector are counterbalanced by concerns regarding its growth prospects and balance sheet. The current Hold rating reflects a balanced view of these competing factors, suggesting that the stock's potential upside is limited by its inherent risks and growth challenges. Investors should closely monitor the company's ability to improve revenue growth and manage its debt levels before considering a more bullish stance.
Business Strategy & Overview
Sierra Bancorp operates as a community bank, primarily serving individuals and businesses in California through its Bank of the Sierra subsidiary. The bank's core business revolves around attracting deposits and originating loans, with a focus on agricultural, commercial, consumer, real estate, construction, and mortgage lending. This diversified loan portfolio helps to mitigate risk across different sectors of the California economy. The company generates revenue primarily from net interest income, which is the difference between the interest earned on loans and the interest paid on deposits, as well as from fees for services such as ATM usage, online banking, and remote deposit capture.
The bank's strategy involves maintaining a strong local presence through its network of 35 full-service branches, an online branch, a loan production office, an agricultural credit center, and an SBA center. This physical and digital footprint allows Sierra Bancorp to cater to a wide range of customer needs and preferences. The company also emphasizes building long-term relationships with its customers by providing personalized service and tailored financial solutions. This approach is particularly important in the competitive community banking sector, where customer loyalty is a key differentiator.
Sierra Bancorp's focus on the California market presents both opportunities and challenges. The state's large and diverse economy offers significant growth potential, but it also exposes the bank to regional economic fluctuations and regulatory pressures. The company's ability to navigate these challenges and capitalize on growth opportunities will be crucial to its long-term success. Furthermore, the bank's investment in technology, such as online and mobile banking platforms, is essential for attracting and retaining customers in an increasingly digital world.
The bank's strategic positioning within the community banking sector emphasizes a relationship-driven approach, leveraging its local presence and personalized service to compete with larger national and regional banks. This strategy aims to foster customer loyalty and generate sustainable growth. However, the bank's relatively small size and limited geographic footprint may constrain its ability to achieve significant economies of scale and compete on price with larger institutions. The company's success will depend on its ability to effectively execute its strategy and adapt to the evolving needs of its customers and the changing competitive landscape.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.0%
Sector: 9.4%
-89% VS SCTR
Economic Moat Analysis
Sierra Bancorp's economic moat is likely Narrow. While the company benefits from certain advantages inherent in the community banking model, these are not substantial enough to create a wide and sustainable competitive advantage. The primary source of its moat stems from its established relationships with local customers and its deep understanding of the California market.
Community banks often enjoy a degree of customer loyalty due to their personalized service and local presence. This can create some switching costs for customers who value these relationships. However, these switching costs are not insurmountable, as customers can easily switch to larger banks or online platforms that offer more competitive rates or a wider range of services. Furthermore, the increasing prevalence of online banking and mobile payment solutions has reduced the importance of physical branch networks, eroding the traditional advantage of community banks.
Sierra Bancorp's focus on specific lending niches, such as agricultural lending, may provide a degree of specialization and expertise that is difficult for larger banks to replicate. This can create a competitive advantage in these specific segments. However, these niches are often subject to cyclical fluctuations and regulatory changes, which can impact the bank's profitability. Furthermore, other community banks may also specialize in similar niches, increasing competition.
The bank's brand recognition and reputation within its local markets can also contribute to its narrow moat. A strong reputation for reliability and customer service can attract and retain customers. However, building and maintaining a strong brand requires ongoing investment and consistent performance. Negative publicity or operational issues can quickly damage a bank's reputation and erode its competitive advantage. Overall, while Sierra Bancorp possesses some advantages that protect its market share and profitability, these advantages are not strong enough to create a wide and sustainable economic moat. The company faces significant competition from larger banks and online platforms, and its ability to maintain its narrow moat will depend on its ability to continue providing personalized service and adapting to the changing needs of its customers.
Financial Health & Profitability
Sierra Bancorp's financial health presents a mixed picture. The company demonstrates strong profitability metrics, with a TTM Net Margin of 23.1% and an Operating Margin of 31.0%, both significantly higher than the sector averages of 17.8% and 22.0%, respectively. Its Return on Equity (ROE) of 11.0% also exceeds the sector average of 8.5%, indicating efficient use of shareholder equity. However, revenue growth is a concern, with a TTM Revenue Growth of only 1.0% compared to the sector average of 9.3%. This suggests that the company is struggling to expand its top line despite its strong profitability.
Analyzing the quarterly financial history reveals some consistency in revenue and net income. Revenue has generally hovered around $40-45 million per quarter, while net income has remained in the $9-11 million range. Operating margins have also been relatively stable, ranging from 28.5% to 33.3%. This consistency suggests a stable business model, but also highlights the lack of significant growth momentum. The spike in Free Cash Flow (FCF) in FY2024 is an anomaly that requires further investigation to determine its sustainability.
The company's balance sheet raises concerns due to its high Debt-to-Equity (D/E) ratio of 950.00, significantly higher than the sector average of 115.00. This indicates a high level of leverage, which could increase the company's vulnerability to economic downturns and rising interest rates. The Current Ratio of 1.11 suggests adequate liquidity to meet short-term obligations, but the high debt levels remain a significant risk factor. The company's Total Cash of $81.83M provides some cushion, but it may not be sufficient to offset the high debt burden.
In summary, Sierra Bancorp's strong profitability is offset by its weak revenue growth and high leverage. While the company's consistent quarterly performance provides some stability, its high debt levels pose a significant risk. Investors should closely monitor the company's ability to improve revenue growth and manage its debt levels. The company's financial health is a key factor in our Hold rating, as the high leverage limits its ability to pursue growth opportunities and increases its vulnerability to economic shocks.
Valuation Assessment
Sierra Bancorp's valuation presents a compelling case for value investors, but requires careful consideration of its growth prospects and financial leverage. The company's P/E ratio of 10.3x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 1.9x is substantially lower than the sector average of 3.5x, further indicating undervaluation based on its enterprise value and operating profitability.
However, these attractive valuation multiples must be considered in the context of the company's relatively weak revenue growth. While the company's profitability metrics are strong, its lack of top-line growth limits its potential for future earnings expansion. This suggests that the market may be discounting the stock due to concerns about its growth prospects. Furthermore, the company's high Debt-to-Equity ratio adds another layer of complexity to the valuation assessment. The high leverage increases the company's financial risk and could limit its ability to invest in growth initiatives.
The negative Free Cash Flow (FCF) of $-46.95M is also a concern, as it indicates that the company is not generating sufficient cash to cover its capital expenditures and debt obligations. This could put pressure on the company's balance sheet and limit its ability to return capital to shareholders. However, it's important to note that FCF can be volatile for financial institutions, and a single year's negative FCF may not be indicative of a long-term trend. Further analysis of the company's cash flow statement is needed to determine the underlying drivers of the negative FCF.
Overall, Sierra Bancorp's valuation appears attractive based on its P/E and EV/EBITDA ratios. However, its weak revenue growth, high leverage, and negative FCF warrant caution. The stock may be undervalued, but the market's concerns about its growth prospects and financial risk are valid. A fair valuation would likely fall somewhere between the deeply discounted multiples and the sector averages, reflecting the company's mixed financial profile. The current Hold rating reflects this balanced view, suggesting that the stock's potential upside is limited by its inherent risks and growth challenges.
Risk & Uncertainty
Sierra Bancorp faces several specific risks that could negatively impact its performance and valuation. One of the most significant risks is its geographic concentration in California. The company's operations are heavily reliant on the California economy, which is subject to cyclical fluctuations and regulatory pressures. A downturn in the California economy could significantly reduce the demand for the bank's products and services, leading to lower revenue and earnings. Furthermore, changes in California's regulatory environment could increase the bank's compliance costs and limit its ability to operate profitably.
Another key risk is the company's high Debt-to-Equity ratio. The high leverage increases the bank's vulnerability to rising interest rates and economic downturns. If interest rates rise, the bank's borrowing costs will increase, reducing its profitability. In an economic downturn, the bank's borrowers may struggle to repay their loans, leading to higher loan losses and lower earnings. The high debt levels also limit the bank's financial flexibility and its ability to pursue growth opportunities.
Competition from larger banks and online platforms is another significant risk. The community banking sector is highly competitive, with numerous players vying for market share. Larger banks often have greater resources and economies of scale, allowing them to offer more competitive rates and a wider range of services. Online platforms are also gaining market share, offering convenient and low-cost banking solutions. Sierra Bancorp must effectively compete with these larger and more technologically advanced competitors to maintain its market share and profitability.
Credit risk is also a concern, particularly in the current economic environment. The bank's loan portfolio is exposed to the risk of borrower default, which could lead to loan losses and lower earnings. The bank must carefully manage its credit risk by implementing sound underwriting standards and monitoring its loan portfolio closely. Changes in accounting standards or regulatory requirements could also impact the bank's ability to manage its credit risk effectively.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSierra Bancorp's superior profitability metrics, including higher ROE and net margins compared to the sector, justify a premium valuation.
BULL VIEWThe bank's strong local presence and customer relationships in California provide a competitive advantage that is not fully reflected in its current stock price.
BULL VIEWBSRR's discounted valuation multiples (P/E and EV/EBITDA) offer an attractive entry point for value investors seeking exposure to the financial sector.
The Bear Case
BEAR VIEWSierra Bancorp's high Debt-to-Equity ratio exposes it to significant financial risk, particularly in a rising interest rate environment.
BEAR VIEWThe bank's weak revenue growth indicates a lack of organic expansion opportunities and limits its potential for future earnings growth.
BEAR VIEWBSRR's geographic concentration in California makes it vulnerable to regional economic downturns and regulatory changes.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BSRR and 4,400+ other equities.
SIERRA BANCORP exhibits a 87% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
31.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
23.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+38%
Income Projection audit
A $10,000 investment would generate approximately $342 annually in dividends at the current trailing rate.
