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.
|Net Margins Growth||n/a||-9.79%||37.07%||-11.3%|
|Earnings Per Share||$1.91||$1.86||$2.18||$2.53|
|Diluted Shares (MM)||162||154||152||151|
|Free Cash Flow (MM)||$507||$495||$477||$784|
|Capital Expenditures (MM)||-$67||-$55||-$52||-$63|
|Net Debt / EBITDA||2.54||1.39||0.75||2.8|