ASSOCIATED BANC-CORP (ASB) Stock Fundamental Analysis
NYSE:ASB - New York Stock Exchange, Inc. - US0454871056 - Common Stock - Currency: USD
Overall ASB gets a fundamental rating of 4 out of 10. We evaluated ASB against 398 industry peers in the Banks industry. Both the profitability and financial health of ASB have multiple concerns. ASB has a decent growth rate and is not valued too expensively. Finally ASB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ASB had positive earnings in the past year.
In the past year ASB had a positive cash flow from operations.
Each year in the past 5 years ASB has been profitable.
Each year in the past 5 years ASB had a positive operating cash flow.
1.2 Ratios
ASB's Return On Assets of 0.26% is on the low side compared to the rest of the industry. ASB is outperformed by 85.43% of its industry peers.
ASB has a worse Return On Equity (2.41%) than 85.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 2.41% | ||
| ROIC | N/A |
ROA(3y)0.52%
ROA(5y)0.67%
ROE(3y)5.09%
ROE(5y)6.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ASB has a Profit Margin of 10.69%. This is amonst the worse of the industry: ASB underperforms 82.16% of its industry peers.
ASB's Profit Margin has declined in the last couple of years.
ASB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 10.69% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-30.12%
PM growth 5Y-15.92%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ASB does not have a ROIC to compare to the WACC, probably because it is not profitable.
ASB has more shares outstanding than it did 1 year ago.
ASB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASB has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ASB is 2.44, which is a good value as it means it would take ASB, 2.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ASB (2.44) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.28 indicates that ASB is not too dependend on debt financing.
ASB has a worse Debt to Equity ratio (0.28) than 66.83% of its industry peers.
Although ASB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC19.78%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.95% over the past year.
Measured over the past 5 years, ASB shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
The Revenue has decreased by -5.89% in the past year.
Measured over the past years, ASB shows a decrease in Revenue. The Revenue has been decreasing by -3.13% on average per year.
EPS 1Y (TTM)14.95%
EPS 3Y2.96%
EPS 5Y3.84%
EPS Q2Q%13.46%
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y-0.65%
Revenue growth 5Y-3.13%
Sales Q2Q%8.09%
3.2 Future
ASB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.83% yearly.
ASB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.82% yearly.
EPS Next Y3.34%
EPS Next 2Y7.1%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue Next Year18.37%
Revenue Next 2Y11.76%
Revenue Next 3Y10.82%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.45, which indicates a very decent valuation of ASB.
83.17% of the companies in the same industry are more expensive than ASB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. ASB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.48, the valuation of ASB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ASB is valued a bit cheaper than the industry average as 75.13% of the companies are valued more expensively.
ASB is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASB indicates a rather cheap valuation: ASB is cheaper than 84.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ASB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.83
PEG (5Y)2.46
EPS Next 2Y7.1%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
ASB has a Yearly Dividend Yield of 4.09%, which is a nice return.
ASB's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.44, ASB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of ASB has a limited annual growth rate of 3.73%.
ASB has been paying a dividend for at least 10 years, so it has a reliable track record.
ASB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.73%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
135.82% of the earnings are spent on dividend by ASB. This is not a sustainable payout ratio.
ASB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP135.82%
EPS Next 2Y7.1%
EPS Next 3Y8.83%
23.24
+0.77 (+3.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.74%
Inst Owner Change-0.27%
Ins Owners0.86%
Ins Owner Change6.39%
Market Cap3.85B
Analysts69.23
Price Target27.54 (18.5%)
Short Float %3.73%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend0.95
Dividend Growth(5Y)3.73%
DP135.82%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.37%
Min EPS beat(2)5.36%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)15.52%
Min EPS beat(4)4.77%
Max EPS beat(4)40.57%
EPS beat(8)7
Avg EPS beat(8)7.51%
EPS beat(12)11
Avg EPS beat(12)9.96%
EPS beat(16)15
Avg EPS beat(16)12.93%
Revenue beat(2)1
Avg Revenue beat(2)16.85%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)35.66%
Revenue beat(4)1
Avg Revenue beat(4)7.09%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)35.66%
Revenue beat(8)2
Avg Revenue beat(8)7.08%
Revenue beat(12)4
Avg Revenue beat(12)5.07%
Revenue beat(16)6
Avg Revenue beat(16)3.77%
PT rev (1m)-4.71%
PT rev (3m)-2.41%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)15.55%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 8.48 | ||
| P/S | 3.71 | ||
| P/FCF | 7.2 | ||
| P/OCF | 6.64 | ||
| P/B | 0.84 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.46
EY10.59%
EPS(NY)2.74
Fwd EY11.8%
FCF(TTM)3.23
FCFY13.89%
OCF(TTM)3.5
OCFY15.06%
SpS6.26
BVpS27.78
TBVpS20.39
PEG (NY)2.83
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 2.41% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 10.69% | ||
| GM | N/A | ||
| FCFM | 51.57% |
ROA(3y)0.52%
ROA(5y)0.67%
ROE(3y)5.09%
ROE(5y)6.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-30.12%
PM growth 5Y-15.92%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 78.03% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 482.41% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC19.78%
ROIC/WACCN/A
Cap/Depr(3y)101.71%
Cap/Depr(5y)88.11%
Cap/Sales(3y)5%
Cap/Sales(5y)4.84%
Profit Quality(3y)309.46%
Profit Quality(5y)249.06%
High Growth Momentum
Growth
EPS 1Y (TTM)14.95%
EPS 3Y2.96%
EPS 5Y3.84%
EPS Q2Q%13.46%
EPS Next Y3.34%
EPS Next 2Y7.1%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y-0.65%
Revenue growth 5Y-3.13%
Sales Q2Q%8.09%
Revenue Next Year18.37%
Revenue Next 2Y11.76%
Revenue Next 3Y10.82%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.52%
FCF growth 3Y3.89%
FCF growth 5Y1.1%
OCF growth 1Y31.06%
OCF growth 3Y3.09%
OCF growth 5Y0.21%