Associated Banc-Corp (ASB) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: 3.58%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.22
• Revenue Growth: -1.23%
• EPS Growth: -34.14%
• Country: US
• Employees: 4,006
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 165,848,020
• 10 Day Avg. Volume: 1,645,496
• 30 Day Avg. Volume: 1,651,046
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 33.00
• 1Y Price Target: $28.38
• Price Target Upside: 11.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $27.00 ▲(6.09% Upside)

The overall stock score of 68 reflects a combination of solid financial performance, positive earnings call sentiment, and mixed technical and valuation indicators. The company's strong revenue growth and cash flow management are significant strengths, while the high P/E ratio and technical indicators suggest caution. The positive earnings call highlights strategic progress and financial milestones, contributing positively to the score.

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 (ASB) is a diversified financial services company headquartered in Green Bay, Wisconsin. It operates primarily in the banking sector and offers a wide range of financial products and services, including commercial and retail banking, investment management, and treasury management services. The company serves various client segments, including individuals, businesses, and governmental entities, through its extensive network of branches and digital banking platforms.

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 revenue growth and effective cash flow management. The gross profit margin is strong, but challenges remain in net profit margin and leverage. The balance sheet shows a need for improved equity utilization and profitability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.10B	2.02B	1.42B	1.12B	1.41B
Gross Profit	944.38M	1.01B	1.20B	1.14B	1.08B
EBITDA	236.97M	300.36M	528.51M	506.75M	435.42M
Net Income	123.14M	182.96M	366.12M	350.99M	306.77M
Balance Sheet
Total Assets	43.02B	41.02B	39.41B	35.10B	33.42B
Cash, Cash Equivalents and Short-Term Investments	5.57B	4.52B	3.34B	5.36B	3.80B
Total Debt	3.16B	2.81B	5.17B	2.22B	2.43B
Total Liabilities	38.42B	36.84B	35.39B	31.08B	29.33B
Stockholders Equity	4.61B	4.17B	4.02B	4.02B	4.09B
Cash Flow
Free Cash Flow	535.26M	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: 25.45
• 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 25.45 is above the 20-day moving average (MA) of 24.94, above the 50-day MA of 24.55, and above the 200-day MA of 23.77, indicating a bullish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.11 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	$4.80B	12.35	10.46%	1.07%	5.16%	25.95%
SFBS	77 Outperform	$4.45B	17.85	15.46%	1.56%	8.15%	26.16%
TCBI	72 Outperform	$3.78B	33.50	4.01%	―	6.86%	-8.81%
ASB	68 Neutral	$4.10B	32.58	3.07%	3.58%	-1.23%	-34.14%
BANF	68 Neutral	$4.16B	18.02	14.43%	1.45%	9.63%	15.57%
Sector *	68 Neutral	$17.51B	11.65	10.43%	3.82%	9.93%	1.68%
IBOC	68 Neutral	$4.41B	10.72	14.71%	1.92%	1.99%	2.08%

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.