NasdaqGS:ONB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

-1.5%

ONB

1.4%

US Banks

1.0%

US Market


1 Year Return

-10.3%

ONB

0.2%

US Banks

6.7%

US Market

Return vs Industry: ONB underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: ONB underperformed the US Market which returned 6.7% over the past year.


Share holder returns

ONBIndustryMarket
7 Day-1.5%1.4%1.0%
30 Day-6.5%-2.6%-1.8%
90 Day1.3%0.8%-1.8%
1 Year-7.6%-10.3%3.1%0.2%9.1%6.7%
3 Year33.3%22.0%52.0%41.5%46.1%36.6%
5 Year57.9%34.3%69.7%51.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

12.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ONB ($16.83) is trading above our estimate of fair value ($13.16)

Significantly Undervalued: ONB is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ONB is poor value based on its PE Ratio (12.9x) compared to the Banks industry average (12.5x).

PE vs Market: ONB is good value based on its PE Ratio (12.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ONB is poor value based on its PEG Ratio (4.6x)


Price Based on Value of Assets

PB vs Industry: ONB is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Old National Bancorp expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ONB's forecast earnings growth (2.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ONB's earnings (2.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ONB's revenue (2.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ONB's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ONB's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

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

12.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ONB's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: ONB's earnings growth over the past year (93.2%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: ONB earnings growth over the past year (93.2%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: ONB's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: ONB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ONB's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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

Debt Coverage by Assets: ONB's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: ONB has an appropriate level of bad loans (1.33%)


Next Steps

Dividend

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

3.32%

Expected Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years3.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ONB's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ONB's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: ONB's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.7%), 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 (44.5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jim Ryan (47yo)

0.4yrs

Tenure

US$1,183,668

Compensation

Mr. James C. Ryan III, also known as Jim, has been Chief Executive Officer and Director of Old National Bancorp since May 2, 2019. He is the President and Director of Indiana Old National Insurance Company ...


CEO Compensation Analysis

Compensation vs. Market: Jim has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: ONB's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

69yo

Average Age

Experienced Board: ONB's board of directors are considered experienced (5.8 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

SellUS$171,50001 May 19
Daryl Moore
EntityIndividual
Role
Senior Key Executive
Senior EVP & Chief Credit Executive
Shares10,000
Max PriceUS$17.15
BuyUS$22,76524 Oct 18
James Ryan
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,300
Max PriceUS$17.60

Ownership Breakdown


Management Team

  • Daryl Moore (61yo)

    Senior EVP & Chief Credit Executive

    • Tenure: 18.8yrs
    • Compensation: US$772.41k
  • Jeffrey Knight (59yo)

    Executive VP

    • Tenure: 14.8yrs
    • Compensation: US$822.25k
  • Mike Woods (51yo)

    Senior VP

    • Tenure: 2.7yrs
  • Todd Clark (49yo)

    Executive VP and Chief Information & Strategic Innovation Officer

    • Tenure: 2.4yrs
    • Compensation: US$783.78k
  • Jim Ryan (47yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$1.18m
  • Lynell Walton

    Senior VP & Director of Investor Relations

    • Tenure: 0yrs
  • Jim Sandgren (52yo)

    President & COO

    • Tenure: 3.4yrs
    • Compensation: US$1.33m
  • Kendra Vanzo (52yo)

    Executive VP & Chief People Officer

    • Tenure: 1.2yrs
  • Julie Williams Daugherty (59yo)

    Chief Administrative Officer & Executive VP

    • Tenure: 5.3yrs
  • Brendon Falconer

    Senior Executive VP & CFO

    • Tenure: 0.4yrs

Board Members

  • Bob Jones (62yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: US$3.00m
  • Andrew Goebel (72yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$110.98k
  • Phelps Lambert (71yo)

    Director

    • Tenure: 29.8yrs
    • Compensation: US$107.48k
  • Alan Braun (74yo)

    Director

    • Tenure: 31.8yrs
    • Compensation: US$100.98k
  • Linda White (69yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: US$99.98k
  • Jim Ryan (47yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$1.18m
  • Joan Kissel (51yo)

    Executive VP

    • Tenure: 2.4yrs
  • Randall Shepard (72yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$90.98k
  • Derrick Stewart (41yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$99.23k
  • Becky Skillman (69yo)

    Lead Director

    • Tenure: 3.4yrs
    • Compensation: US$125.98k

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$2.899b
  • Shares outstanding: 172.23m
  • 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 holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. The company offers deposit a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:16
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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