Associated Banc-Corp (ASB) AI Stock Analysis

• Market Cap: $4.26B
• Dividend Yield: 3.54%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.19
• Revenue Growth: -1.23%
• EPS Growth: -34.14%
• Country: US
• Employees: 4,006
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 165,848,020
• 10 Day Avg. Volume: 1,497,291
• 30 Day Avg. Volume: 1,349,180
• PEG Ratio: -0.82
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 6.78
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 8.18
• Enterprise Value/Ebitda: 28.63
• 1Y Price Target: $28.50
• Price Target Upside: 9.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $28.00 ▲(7.69% Upside)

The overall stock score of 72 reflects a stable financial performance with strong revenue growth and effective cash flow management. The technical analysis indicates a positive market sentiment, while the earnings call highlights strategic progress and confidence in future growth. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall outlook.

Positive Factors

Commercial Loan Growth

The significant growth in commercial and industrial loans indicates strong demand and successful execution of the company's lending strategy, which can drive future revenue and market share expansion.

Net Interest Income

Record net interest income reflects effective interest rate management and loan portfolio optimization, supporting long-term profitability and financial stability.

Deposit Growth

Sustained deposit growth enhances liquidity and funding stability, enabling the company to support lending activities and invest in growth opportunities.

Negative Factors

Declining Net Profit Margin

The decline in net profit margin indicates pressure on earnings, which could hinder the company's ability to reinvest in growth and maintain competitive positioning.

Increased Delinquencies

Rising delinquencies suggest potential credit quality issues, which could lead to higher loan loss provisions and impact future profitability.

CRE Investor Loan Outflows

The outflow of CRE investor loans indicates challenges in retaining or growing this segment, potentially affecting the company's revenue diversification and growth prospects.

Associated Banc-Corp Business Overview & Revenue Model

Company Description

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. Its Corporate and Commercial Specialty segment offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and loan syndications; deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services such as interest rate risk management, foreign exchange solutions, and commodity hedging; fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management; and investable funds solutions such as savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount and online investment brokerage; investment advisory services; and trust and investment management accounts. The company's Community, Consumer, and Business segment offers lending solutions, such as residential mortgages, home equity loans and lines of credit, personal and installment loans, auto loans, business loans, and business lines of credit; and deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. As of December 31, 2021, the company operated 215 banking branches. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

How the Company Makes Money

Associated Banc-Corp generates revenue through several key streams, primarily from net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits and other borrowings. The company offers a variety of loan products, including commercial loans, consumer loans, and mortgages. Additionally, ASB earns non-interest income through service charges on deposit accounts, wealth management fees, and transaction-related fees. Significant partnerships with other financial institutions and businesses also contribute to its earnings by facilitating cross-selling of products and expanding its customer base.

Associated Banc-Corp Financial Statement Overview

Summary

Associated Banc-Corp has demonstrated solid growth in revenue and maintained effective cash flow management, despite challenges in profitability and leverage. The company's strong gross profit margin and cash flow ratios indicate operational resilience, while the mixed balance sheet metrics suggest opportunities to enhance equity efficiency and profitability. The overall financial health is stable but requires strategic improvements to sustain long-term growth.

Income Statement

The income statement shows moderate performance with some challenges. The Gross Profit Margin for the TTM (Trailing-Twelve-Months) is strong at approximately 72.5%, indicating effective cost management relative to revenue. However, the Net Profit Margin has declined to 8.1% from 12.9% in 2024, reflecting pressure on net earnings. The Revenue Growth Rate for the TTM is healthy at 85.4%, showing substantial growth compared to the previous year. EBIT and EBITDA margins are relatively modest, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet presents a mixed picture. The Debt-to-Equity Ratio is 0.63, suggesting a balanced leverage position, although slightly higher than the previous year. The Return on Equity (ROE) is relatively low at 3.1% for the TTM, down from 2.7% in 2024, indicating a need for enhanced profitability. The Equity Ratio of 10.8% reflects a moderately leveraged position but below optimal levels for stability. Overall, the company maintains adequate financial stability but could improve equity utilization.

Cash Flow

Cash flow performance is solid. The Free Cash Flow Growth Rate for the TTM is marginal at 0.1%, but the company effectively maintains strong free cash flow generation. The Operating Cash Flow to Net Income Ratio is robust at 3.65, highlighting efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio stands at 3.73, reinforcing the company's ability to convert earnings into cash effectively. However, there is potential to enhance cash flow growth further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	2.10B	2.02B	1.42B	1.12B	1.41B
Gross Profit	1.03B	944.38M	1.01B	1.20B	1.14B	1.08B
EBITDA	292.99M	236.97M	300.36M	528.51M	506.75M	435.42M
Net Income	139.32M	123.14M	182.96M	366.12M	350.99M	306.77M
Balance Sheet
Total Assets	43.99B	43.02B	41.02B	39.41B	35.10B	33.42B
Cash, Cash Equivalents and Short-Term Investments	6.29B	5.57B	4.52B	3.34B	5.36B	3.80B
Total Debt	4.55B	3.16B	2.81B	5.17B	2.22B	2.43B
Total Liabilities	39.21B	38.42B	36.84B	35.39B	31.08B	29.33B
Stockholders Equity	4.78B	4.61B	4.17B	4.02B	4.02B	4.09B
Cash Flow
Free Cash Flow	508.87M	535.26M	380.93M	783.86M	477.27M	495.14M
Operating Cash Flow	551.89M	580.25M	442.74M	846.57M	529.55M	550.02M
Investing Cash Flow	-2.33B	-2.22B	-1.44B	-5.25B	-1.58B	-793.74M
Financing Cash Flow	2.08B	1.73B	1.30B	4.00B	1.36B	371.02M

Associated Banc-Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASB, the sentiment is Positive. The current price of 26 is below the 20-day moving average (MA) of 26.01, above the 50-day MA of 25.54, and above the 200-day MA of 23.74, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 48.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASB.

Associated Banc-Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABCB	79 Outperform	$5.02B	12.90	10.46%	1.08%	5.95%	25.95%
SFBS	74 Outperform	$4.43B	17.76	15.46%	1.65%	8.15%	26.16%
TCBI	73 Outperform	$3.85B	33.69	4.01%	―	6.86%	-8.81%
ASB	72 Outperform	$4.26B	33.86	3.07%	3.54%	-1.23%	-34.14%
IBOC	68 Neutral	$4.27B	10.39	14.71%	2.04%	1.99%	2.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BANF	67 Neutral	$4.21B	18.26	14.43%	1.48%	9.63%	15.57%

Associated Banc-Corp Corporate Events

Associated Banc-Corp Announces Retirement of David Stein

On May 8, 2025, Associated Banc-Corp announced the retirement of David Stein, who has been with the company for over 20 years. Stein will step down as executive vice president and head of consumer and business banking on July 1, 2025, transitioning to a strategic advisor role and continuing as Madison market president until the end of 2025. His leadership has been instrumental in advancing the bank’s consumer and business banking sectors, and he will contribute to the development of the next strategic plan before his full retirement. Steven Zandpour will take over as head of consumer and business banking effective July 1, 2025.