NasdaqGS:ONB

Stock Analysis Report

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Executive Summary

Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

7.0%

ONB

3.9%

US Banks

-0.4%

US Market


1 Year Return

-18.7%

ONB

-26.3%

US Banks

18.3%

US Market

Return vs Industry: ONB exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: ONB underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

ONBIndustryMarket
7 Day7.0%3.9%-0.4%
30 Day19.6%12.0%6.6%
90 Day3.6%5.4%8.6%
1 Year-15.8%-18.7%-23.6%-26.3%21.0%18.3%
3 Year-13.5%-21.2%-16.3%-23.3%42.1%32.7%
5 Year23.9%5.2%21.9%6.8%85.6%64.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ONB ($14.73) is trading above our estimate of fair value ($14.7)

Significantly Below Fair Value: ONB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ONB is poor value based on its PE Ratio (12.2x) compared to the US Banks industry average (10.2x).

PE vs Market: ONB is good value based on its PE Ratio (12.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ONB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ONB's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Old National Bancorp forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONB's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: ONB's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: ONB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ONB's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: ONB's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ONB's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Old National Bancorp performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONB has high quality earnings.

Growing Profit Margin: ONB's current net profit margins (26.4%) are lower than last year (30%).


Past Earnings Growth Analysis

Earnings Trend: ONB's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: ONB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ONB had negative earnings growth (-14.8%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: ONB's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Old National 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


Financial Institutions Analysis

Asset Level: ONB's Assets to Equity ratio (7.7x) is low.

Allowance for Bad Loans: ONB has a low allowance for bad loans (82%).

Low Risk Liabilities: 84% of ONB's liabilities are made up of primarily low risk sources of funding.

Loan Level: ONB has an appropriate level of Loans to Assets ratio (61%).

Low Risk Deposits: ONB's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: ONB has an appropriate level of bad loans (1.1%).


Next Steps

Dividend

What is Old National Bancorp current dividend yield, its reliability and sustainability?

3.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ONB's dividend (3.8%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: ONB's dividend (3.8%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

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

Growing Dividend: ONB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.5%), ONB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ONB's dividends in 3 years are forecast to be well covered by earnings (45.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jim Ryan (48 yo)

1.42yrs

Tenure

US$2,573,184

Compensation

Mr. James C. Ryan III, also known as Jim, serves as Chairman of Old National Bancorp since January 30, 2020. Mr. Ryan has been Chief Executive Officer and Director of Old National Bancorp since May 2, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.57M) is below average for companies of similar size in the US market ($USD5.61M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Ryan
Chairman & CEO1.42yrsUS$2.57m0.078%
$ 1.9m
James Sandgren
President & COO4.42yrsUS$1.40m0.070%
$ 1.7m
Brendon Falconer
Senior EVP & CFO1.42yrsUS$919.75k0.011%
$ 275.2k
Jeffrey Knight
Executive VP15.83yrsUS$820.26k0.053%
$ 1.3m
Todd Clark
Executive VP & Chief Executive Officer of Community Banking0.75yrUS$819.02k0.055%
$ 1.3m
Michael Woods
Senior VP3.67yrsno data0.0024%
$ 57.7k
Paul Kilroy
Executive VP & Chief Information Officer0.67yrno data0.020%
$ 497.1k
Kendra Vanzo
Executive VP & Chief Administrative Officer0.75yrno data0.033%
$ 793.0k
Lynell Walton
Senior VP & Director of Investor Relationsno datano datano data
Kathy Schoettlin
Executive VPno datano datano data
Caroline Ellspermann
Executive VP & Chief People Officer0.75yrno datano data
Daryl Moore
Senior EVP & Chief Credit Executive19.75yrsUS$772.41k0.043%
$ 1.1m

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: ONB's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Ryan
Chairman & CEO1.42yrsUS$2.57m0.078%
$ 1.9m
Andrew Goebel
Independent Director20.75yrsUS$110.99k0.031%
$ 755.7k
Jerome Henry
Independent Director6.33yrsUS$92.49k0.19%
$ 4.7m
Phelps Lambert
Independent Director30.75yrsUS$187.06k0.094%
$ 2.3m
Linda White
Independent Director11.92yrsUS$293.28k0.0038%
$ 92.3k
Katherine White
Independent Director5.17yrsUS$118.69k0.0020%
$ 49.4k
Thomas Salmon
Independent Director2.5yrsUS$97.40kno data
Austin Ramirez
Independent Director0.50yrno data0.00043%
$ 10.5k
Randall Shepard
Independent Director8.25yrsUS$95.99k0.019%
$ 466.1k
Derrick Stewart
Independent Director5.33yrsUS$110.94k0.0042%
$ 101.1k
Rebecca Skillman
Independent Lead Director4.42yrsUS$125.99k0.014%
$ 329.7k
Ryan Kitchell
Independent Director2.5yrsUS$108.64kno data

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ONB's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Old National Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Old National Bancorp
  • Ticker: ONB
  • Exchange: NasdaqGS
  • Founded: 1834
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.435b
  • Shares outstanding: 165.33m
  • Website: https://www.oldnational.com

Number of Employees


Location

  • Old National Bancorp
  • One Main Street
  • Evansville
  • Indiana
  • 47708
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1984
ON1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1984

Biography

Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. The company accepts dep ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 23:42
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.