Associated Banc-Corp (ASB) AI Stock Analysis

• Market Cap: $3.72B
• Dividend Yield: 4.03%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.25
• Revenue Growth: 0.29%
• EPS Growth: -11.72%
• Country: US
• Employees: 4,000
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 0.85
• Shares Outstanding: 165,639,130
• 10 Day Avg. Volume: 2,335,787
• 30 Day Avg. Volume: 1,930,039
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.14
• Price Target Upside: 16.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Associated Banc-Corp demonstrates stable financial health and positive strategic initiatives, contributing to loan and deposit growth. However, challenges remain in cost management and profit realization. The technical analysis depicts mixed signals, with potential overvaluation concerns. Positive earnings call insights and strategic initiatives support the stock, but macroeconomic uncertainties and non-recurring expenses pose risks.

Positive Factors

Credit Trends

Credit had positive trends with non-performing loans decreasing and provisions below estimates.

Franchise Growth

Management has done well to improve the growth rate of the franchise, with profitability improvement to follow.

Negative Factors

Loan Growth

Net interest income was weaker than expected due to softer loan growth, impacting overall profitability.

Net Interest Income

Faster rate cuts weigh on lowered Net Interest Income guidance, impacting earnings.

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 primarily through interest earned on loans and securities, which is a significant component of its net interest income. The company also earns non-interest income through fees and service charges related to deposit accounts, wealth management and investment services, and loan servicing. Additionally, insurance services contribute to its revenue streams. Associated Banc-Corp benefits from strategic partnerships and community banking initiatives, leveraging its strong regional presence and customer relationships to drive growth and profitability.

Associated Banc-Corp Financial Statement Overview

Summary

Associated Banc-Corp's financial health is stable with consistent revenue growth and a strong balance sheet. However, declining net profit margins and fluctuating cash flow metrics suggest challenges in managing operational costs and converting revenue into profit. Continued focus on efficiency improvements and cost management could enhance profitability.

Income Statement

The gross profit margin remains consistent as gross profit equals total revenue, indicating an efficient cost structure. However, net profit margin has decreased from 15.5% in 2022 to 5.8% in 2024, reflecting increased expenses or reduced income. Revenue grew significantly from 2023 to 2024 by 108.2%, but net income declined, indicating potential challenges in cost management or profit realization.

Balance Sheet

The company has demonstrated strong equity growth with stockholders' equity increasing steadily, reflecting robust financial health. There is a decrease in total debt over the years, leading to a favorable debt-to-equity ratio. However, the equity ratio has slightly declined over the years, indicating a higher proportion of liabilities relative to assets.

Cash Flow

Operating cash flow has shown a positive trend but is not consistently converted into net income, as seen in the fluctuating operating cash flow to net income ratio. Free cash flow has grown, but the free cash flow growth rate was negative from 2022 to 2023, signaling potential volatility. The company has maintained strong cash reserves, aiding liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03B	1.02B	1.20B	1.13B	1.12B
	Gross Profit
2.12B	1.02B	1.20B	1.13B	1.12B
	EBIT
-1.31B	324.18M	692.65M	436.31M	326.97M
	EBITDA
0.00	0.00	513.53M	440.98M	359.70M
	Net Income Common Stockholders
123.14M	182.96M	366.12M	350.99M	306.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.13B	4.09B	436.95M	5.36B	3.80B
	Total Assets
43.02B	41.02B	39.41B	35.10B	33.42B
	Total Debt
2.69B	2.48B	4.59B	1.91B	2.24B
	Net Debt
1.69B	1.57B	4.00B	879.59M	1.53B
	Total Liabilities
38.42B	36.84B	35.39B	31.08B	29.33B
	Stockholders Equity
4.41B	4.17B	4.02B	4.02B	4.09B
Cash Flow		Free Cash Flow
580.25M	380.93M	783.86M	477.27M	495.14M
	Operating Cash Flow
580.25M	442.74M	846.57M	529.55M	550.02M
	Investing Cash Flow
-2.22B	-1.44B	-5.25B	-1.58B	-793.74M
	Financing Cash Flow
1.73B	1.30B	4.00B	1.36B	371.02M

Associated Banc-Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 22.47 is above the 20-day moving average (MA) of 20.61, above the 50-day MA of 22.18, and below the 200-day MA of 22.90, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 89.52 is Negative, 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
AX	72 Outperform	$3.59B	8.45	18.81%	―	26.87%	10.56%
WU	72 Outperform	$3.36B	3.77	136.84%	9.27%	-5.16%	59.60%
ABCB	72 Outperform	$3.93B	10.97	9.99%	1.25%	8.49%	33.58%
BANF	69 Neutral	$3.94B	17.98	14.14%	1.53%	2.59%	7.66%
ASB	65 Neutral	$3.72B	26.39	3.24%	4.03%	0.29%	-11.72%
Sector *	63 Neutral	$12.38B	9.57	7.87%	79.17%	12.62%	-4.94%
EBC	60 Neutral	$3.17B	24.06	-4.18%	3.11%	-7.21%	-122.95%

Associated Banc-Corp Corporate Events

Associated Banc-Corp Highlights 2025 Strategic Growth Initiatives

The investor presentation for the first quarter of 2025 highlights Associated Banc-Corp’s strategic initiatives and growth trajectory. In recent years, the company has implemented a variety of growth-focused strategies, including upgrading its digital banking experience and launching new programs to expand its commercial presence and improve profitability. These efforts have contributed to increased loan growth, improved customer satisfaction, and a stronger market position, including a significant increase in commercial and business lending and a successful repositioning of their balance sheet. The company’s disciplined credit and expense management have been key drivers in enhancing returns, with a particular focus on diversifying into higher-return categories.