NasdaqGS:CNOB

Stock Analysis Report

Executive Summary

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank, a state chartered bank that provides various commercial banking products and services.

Rewards

Trading at 3.5% below its fair value

Earnings are forecast to grow 16.03% per year

Earnings grew by 21.9% over the past year

Pays a reliable dividend of 1.43%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

CVB Financial

NasdaqGS:CVBF

Share Price & News

How has ConnectOne Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CNOB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

CNOB

-4.2%

US Banks

-2.7%

US Market


1 Year Return

20.0%

CNOB

10.1%

US Banks

21.2%

US Market

Return vs Industry: CNOB exceeded the US Banks industry which returned 21.7% over the past year.

Return vs Market: CNOB underperformed the US Market which returned 22.3% over the past year.


Shareholder returns

CNOBIndustryMarket
7 Day-4.2%-4.2%-2.7%
30 Day-4.7%-6.3%0.09%
90 Day-0.5%0.5%6.9%
1 Year21.9%20.0%13.3%10.1%23.8%21.2%
3 Year0.5%-3.5%26.6%17.7%48.1%38.6%
5 Year39.8%30.0%79.7%59.6%72.5%53.4%

Price Volatility Vs. Market

How volatile is ConnectOne Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ConnectOne Bancorp undervalued compared to its fair value and its price relative to the market?

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNOB ($24.85) is trading below our estimate of fair value ($25.76)

Significantly Below Fair Value: CNOB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CNOB is good value based on its PE Ratio (12.2x) compared to the Banks industry average (12.8x).

PE vs Market: CNOB is good value based on its PE Ratio (12.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CNOB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CNOB is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is ConnectOne Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNOB's forecast earnings growth (16% per year) is above the savings rate (1.7%).

Earnings vs Market: CNOB's earnings (16% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: CNOB's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNOB's revenue (13.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CNOB's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNOB's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has ConnectOne Bancorp performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNOB has high quality earnings.

Growing Profit Margin: CNOB's current net profit margins (39.4%) are lower than last year (42.4%).


Past Earnings Growth Analysis

Earnings Trend: CNOB's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: CNOB's earnings growth over the past year (36.3%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: CNOB earnings growth over the past year (21.9%) exceeded the Banks industry 21.1%.


Return on Equity

High ROE: CNOB's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ConnectOne Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CNOB has a low level of unsold assets or inventory.

Debt Coverage by Assets: CNOB's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: CNOB's level of assets compared to its equity is low.

Allowance for Bad Loans: CNOB has a low allowance for bad loans.

Low Risk Liabilities: CNOB's liabilities are made up of primarily low risk sources of funding.

Loan Level: CNOB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CNOB's loans are broadly funded by customer deposits.

Level of Bad Loans: CNOB has an appropriate level of bad loans (1%)


Next Steps

Dividend

What is ConnectOne Bancorp's current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: CNOB's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CNOB's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: CNOB's dividends per share have been stable in the past 10 years.

Growing Dividend: CNOB's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.8%), CNOB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNOB's dividends in 3 years are forecast to be well covered by earnings (16.5% payout ratio).


Next Steps

Management

What is the CEO of ConnectOne Bancorp's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Frank Sorrentino (57yo)

5.5yrs

Tenure

US$2,116,801

Compensation

Mr. Frank S. Sorrentino, III, has been the Chairman, President and Chief Executive Officer of ConnectOne Bancorp, Inc. since July 1, 2014. Mr. Sorrentino serves as Chairman and Chief Executive Officer of N ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD2.12M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: CNOB's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

61yo

Average Age

Experienced Board: CNOB's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$99,95029 Aug 19
Frank Baier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$19.99
BuyUS$214,95622 Aug 19
Stephen Boswell
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,500
Max PriceUS$20.47
SellUS$32,83502 May 19
William Burns
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,500
Max PriceUS$21.89
SellUS$19,17102 May 19
Laura Criscione
EntityIndividual
Role
Chief Compliance Officer
Executive VP & Corporate Secretary
Shares873
Max PriceUS$21.96
SellUS$33,53302 May 19
Christopher Ewing
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,527
Max PriceUS$21.96
SellUS$34,34101 May 19
Elizabeth Magennis
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Lending Officer
Shares1,556
Max PriceUS$22.07
SellUS$114,89701 May 19
Frank Sorrentino
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,240
Max PriceUS$21.93
BuyUS$24,52207 Mar 19
William Thompson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,175
Max PriceUS$20.87
SellUS$54,29131 Jan 19
William Thompson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,700
Max PriceUS$20.11

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Management Team

  • Bill Burns (59yo)

    Executive VP & CFO

    • Tenure: 6yrs
    • Compensation: US$859.27k
  • Mike Rozman

    President of BoeFly Division

    • Tenure: 0.6yrs
  • Frank Sorrentino (57yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: US$2.12m
  • Liz Magennis (49yo)

    Executive VP & Chief Lending Officer

    • Tenure: 5.5yrs
    • Compensation: US$803.45k
  • Laura Criscione (50yo)

    Executive VP & Corporate Secretary

    • Compensation: US$512.26k
  • Mike McGrover

    First Senior VP & Chief Credit Officer

    • Compensation: US$542.41k
  • Chris Ewing (59yo)

    Executive VP & COO

    • Compensation: US$713.51k
  • Siya Vansia

    Vice President of Marketing


    Board Members

    • Frank Baier (53yo)

      Independent Director

      • Tenure: 6yrs
      • Compensation: US$97.48k
    • Joe Parisi (59yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$72.48k
    • Michael Kempner (61yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$72.48k
    • William Thompson (61yo)

      Independent Director

      • Tenure: 26yrs
      • Compensation: US$77.48k
    • Al Bol (71yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$90.48k
    • Nick Minoia (63yo)

      Director

      • Tenure: 11yrs
      • Compensation: US$110.48k
    • Frank Huttle (64yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$84.48k
    • Frank Sorrentino (57yo)

      Chairman

      • Tenure: 5.5yrs
      • Compensation: US$2.12m
    • Stephen Boswell (65yo)

      Lead Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$123.98k
    • Katherin Nukk-Freeman (50yo)

      Director

      • Compensation: US$7.61k

    Company Information

    ConnectOne Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: ConnectOne Bancorp, Inc.
    • Ticker: CNOB
    • Exchange: NasdaqGS
    • Founded: 1982
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$851.594m
    • Shares outstanding: 34.87m
    • Website: https://www.connectonebank.com

    Number of Employees


    Location

    • ConnectOne Bancorp, Inc.
    • 301 Sylvan Avenue
    • Bergen County
    • Englewood Cliffs
    • New Jersey
    • 7632
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CNOBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1975

    Biography

    ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank, a state chartered bank that provides various commercial banking products and services. The company offers a range of deposit products, including personal and business checking accounts, retirement accounts, money market accounts, and time and savings accounts. It also provides personal and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; and other personal purpose loans. In addition, the company offers credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, ACH origination, lockbox, mobile banking by phone, safe deposit box, and remote deposit capture services. As of January 24, 2019, the company offered its commercial and consumer banking and lending services and products through its 29 banking offices located in New York and New Jersey. It serves small-to-medium sized businesses, high net worth individuals, professional practices, and consumer and retail clients. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 23:34
    End of Day Share Price2020/01/27 00:00
    Earnings2019/12/31
    Annual Earnings2019/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.