Associated Banc- may be undervalued with poor growth indicators, but the 9 analysts following the company give it an rating of hold. Their target prices range from $19.0 to $26.0 per share, for an average of $20.78. At today's price of $17.78, Associated Banc- is trading -14.44% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. Based in Green Bay, WI, the mid-cap Finance company has 4,219 full time employees. Associated Banc- has provided a 4.7% dividend yield over the last 12 months.
Associated Banc- has a trailing twelve month P/E ratio of 7.0, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 2.24, the company has a forward P/E ratio of 7.9.
The average compound growth rate of the company's historical and projected earnings per share is 3.2%. On this basis, the company's PEG ratio is 2.42. However, this growth rate is probably not sustainable. In its place we will use the broader market's estimated 5-year EPS growth rate of 6.0%, which gives us a PEG ratio of 1.31. This shows that Associated Banc- is fairly priced.
On the other hand, the market is potentially undervaluing Associated Banc- in terms of its book value because its P/B ratio is 0.7. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -50.0% below their Graham number, indicating that its shares have a margin of safety.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,208 | $1,257 | $1,049 | $1,234 |
| Revenue Growth | n/a | 4.08% | -16.54% | 17.61% |
| Net Margins | 27.06% | 24.41% | 33.46% | 29.68% |
| Net Margins Growth | n/a | -9.79% | 37.07% | -11.3% |
| Earnings Per Share | $1.91 | $1.86 | $2.18 | $2.53 |
| EPS Growth | n/a | -2.62% | 17.2% | 16.06% |
| Diluted Shares (MM) | 162 | 154 | 152 | 151 |
| Free Cash Flow (MM) | $507 | $495 | $477 | $784 |
| FCF Growth | n/a | -2.3% | -3.61% | 64.24% |
| Capital Expenditures (MM) | -$67 | -$55 | -$52 | -$63 |
| Net Debt / EBITDA | 2.54 | 1.39 | 0.75 | 2.8 |
