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ONB

Old National Bancorp NasdaqGS:ONB Stock Report

Last Price

US$17.68

Market Cap

US$5.2b

7D

4.1%

1Y

5.9%

Updated

11 Aug, 2022

Data

Company Financials +
ONB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends4/6

ONB Stock Overview

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.

Old National Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Old National Bancorp
Historical stock prices
Current Share PriceUS$17.68
52 Week HighUS$20.81
52 Week LowUS$14.22
Beta0.85
1 Month Change16.32%
3 Month Change14.43%
1 Year Change5.87%
3 Year Change6.70%
5 Year Change8.80%
Change since IPO114.40%

Recent News & Updates

Jul 26

Old National Bancorp Non-GAAP EPS of $0.46 beats by $0.07, revenue of $430.9M beats by $39.55M

Old National Bancorp press release (NASDAQ:ONB): Q2 Non-GAAP EPS of $0.46 beats by $0.07. Revenue of $430.9M (+110.3% Y/Y) beats by $39.55M.

Jun 08

Old National Bancorp: Old But May Become Gold

Old National Bancorp remains well-positioned following its recent acquisition of First Midwest. Inflationary pressures may become a driving force for Old National Bancorp and FMBI. The competition in the banking industry is becoming even tighter. It must do more than just increase its market visibility. The stock price is in a slight uptrend with potential undervaluation.

Shareholder Returns

ONBUS BanksUS Market
7D4.1%5.5%1.3%
1Y5.9%-13.2%-11.7%

Return vs Industry: ONB exceeded the US Banks industry which returned -14.5% over the past year.

Return vs Market: ONB exceeded the US Market which returned -11.6% over the past year.

Price Volatility

Is ONB's price volatile compared to industry and market?
ONB volatility
ONB Average Weekly Movement3.5%
Banks Industry Average Movement3.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ONB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ONB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18344,196Jim Ryanhttps://www.oldnational.com

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. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, health savings, and capital markets services, as well as community development lending and equity investment solutions.

Old National Bancorp Fundamentals Summary

How do Old National Bancorp's earnings and revenue compare to its market cap?
ONB fundamental statistics
Market CapUS$5.18b
Earnings (TTM)US$209.28m
Revenue (TTM)US$1.01b

24.7x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ONB income statement (TTM)
RevenueUS$1.01b
Cost of RevenueUS$0
Gross ProfitUS$1.01b
Other ExpensesUS$802.60m
EarningsUS$209.28m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.71
Gross Margin100.00%
Net Profit Margin20.68%
Debt/Equity Ratio90.5%

How did ONB perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ONB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ONB?

Other financial metrics that can be useful for relative valuation.

ONB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does ONB's PE Ratio compare to its peers?

ONB PE Ratio vs Peers
The above table shows the PE ratio for ONB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.7x
HOMB Home Bancshares (Conway AR)
22.1x45.6%US$5.1b
OZK Bank OZK
9.3x1.4%US$5.0b
FIBK First Interstate BancSystem
33.9x50.8%US$4.4b
WTFC Wintrust Financial
13.3x16.2%US$5.4b
ONB Old National Bancorp
24.7x66.2%US$5.2b

Price-To-Earnings vs Peers: ONB is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (19.7x).


Price to Earnings Ratio vs Industry

How does ONB's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: ONB is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the US Banks industry average (9.9x)


Price to Earnings Ratio vs Fair Ratio

What is ONB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ONB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.7x
Fair PE Ratio36.5x

Price-To-Earnings vs Fair Ratio: ONB is good value based on its Price-To-Earnings Ratio (24.7x) compared to the estimated Fair Price-To-Earnings Ratio (36.5x).


Share Price vs Fair Value

What is the Fair Price of ONB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ONB ($17.68) is trading below our estimate of fair value ($35.23)

Significantly Below Fair Value: ONB is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


66.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONB's forecast earnings growth (66.2% per year) is above the savings rate (1.9%).

Earnings vs Market: ONB's earnings (66.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: ONB's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ONB's revenue (20.4% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: ONB's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ONB's Return on Equity is forecast to be high in 3 years time


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ONB has high quality earnings.

Growing Profit Margin: ONB's current net profit margins (20.7%) are lower than last year (35.8%).


Past Earnings Growth Analysis

Earnings Trend: ONB's earnings have grown by 14.6% 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 (-30.6%) over the past year, making it difficult to compare to the Banks industry average (8.8%).


Return on Equity

High ROE: ONB's Return on Equity (4.2%) is considered low.


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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: ONB's Assets to Equity ratio (9x) is low.

Allowance for Bad Loans: ONB has a sufficient allowance for bad loans (125%).

Low Risk Liabilities: 87% 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 (64%).

Low Risk Deposits: ONB's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: ONB has an appropriate level of bad loans (0.8%).


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ONB's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: ONB's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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

Earnings Coverage: With its reasonable payout ratio (56.8%), ONB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


Discover strong dividend paying companies

Management

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

0.5yrs

Average management tenure


CEO

Jim Ryan (50 yo)

3.25yrs

Tenure

US$3,971,101

Compensation

Mr. James C. Ryan III, also known as Jim, served as Chairman of Old National Bancorp since January 30, 2020 until February 15, 2022. Mr. Ryan has been Chief Executive Officer and Director of Old National B...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD3.97M) is below average for companies of similar size in the US market ($USD8.26M).

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


Leadership Team

Experienced Management: ONB's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: ONB's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 76.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Old National Bancorp
  • Ticker: ONB
  • Exchange: NasdaqGS
  • Founded: 1834
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$5.178b
  • Shares outstanding: 292.89m
  • Website: https://www.oldnational.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.