Associated Banc-Corp (ASB) AI Stock Analysis

• Market Cap: $4.16B
• Dividend Yield: 3.67%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.20
• Revenue Growth: 0.21%
• EPS Growth: -12.02%
• Country: US
• Employees: 4,006
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 165,809,600
• 10 Day Avg. Volume: 1,384,011
• 30 Day Avg. Volume: 1,075,218
• PEG Ratio: 2.62
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: 5.60
• 1Y Price Target: $26.13
• Price Target Upside: 1.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 70 Neutral
• Price Target: $25.00 ▼(-2.42%Downside)

The overall stock score reflects strong financial and earnings performance, balanced by a moderately high valuation and neutral technical indicators. The company's robust operational metrics and strategic growth initiatives are significant strengths, while the high P/E ratio and potential macroeconomic challenges warrant caution.

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 income from its lending activities, which include personal loans, mortgages, and commercial loans. The company also earns money from fees and service charges related to its deposit accounts, wealth management services, and transaction-based activities such as credit and debit card services. Additionally, ASB benefits from investment securities and gains from sales of assets. Strategic partnerships, effective risk management, and a focus on customer relationships further support its financial performance.

Associated Banc-Corp Financial Statement Overview

Summary

Associated Banc-Corp shows moderate financial performance with strong revenue growth and effective cash management. However, challenges in profitability and leverage indicate the need for strategic improvements.

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	1.82B	2.10B	1.02B	1.42B	1.12B	1.41B
Gross Profit	1.28B	944.38M	1.01B	1.23B	1.14B	1.08B
EBITDA	254.17M	236.97M	300.36M	528.51M	506.75M	435.42M
Net Income	143.66M	123.14M	182.96M	366.12M	350.99M	306.77M
Balance Sheet
Total Assets	43.31B	43.02B	41.02B	39.41B	35.10B	33.42B
Cash, Cash Equivalents and Short-Term Investments	5.32B	5.13B	4.52B	436.95M	5.36B	3.50B
Total Debt	2.93B	3.16B	2.81B	4.59B	2.22B	2.24B
Total Liabilities	38.62B	38.42B	36.84B	35.39B	31.08B	29.33B
Stockholders Equity	4.69B	4.61B	4.17B	4.02B	4.02B	4.09B
Cash Flow
Free Cash Flow	535.70M	535.26M	380.93M	783.86M	477.27M	495.14M
Operating Cash Flow	523.91M	580.25M	442.74M	846.57M	529.55M	550.02M
Investing Cash Flow	-2.07B	-2.22B	-1.44B	-5.25B	-1.58B	-793.74M
Financing Cash Flow	1.93B	1.73B	1.30B	4.00B	1.36B	371.02M

Associated Banc-Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 25.62 is above the 20-day moving average (MA) of 23.74, above the 50-day MA of 23.21, and above the 200-day MA of 23.17, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 71.45 is Negative, neither overbought nor oversold. The STOCH value of 89.77 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
ABCB	78 Outperform	$4.57B	12.30	10.19%	1.24%	7.16%	31.69%
AX	77 Outperform	$4.42B	10.67	17.80%	―	15.93%	0.17%
BANF	72 Outperform	$4.24B	19.33	14.14%	1.49%	11.42%	7.58%
ASB	70 Neutral	$4.16B	29.46	3.23%	3.67%	0.21%	-12.02%
WU	66 Neutral	$2.87B	3.22	136.84%	10.84%	-5.16%	59.60%
Sector *	64 Neutral	$6.58B	10.88	6.59%	5.04%	24.65%	0.99%
EBC	56 Neutral	$3.31B	24.06	-4.18%	3.40%	-7.20%	-122.94%

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.

Associated Banc-Corp Shareholders Approve 2025 Equity Plan

On April 29, 2025, Associated Banc-Corp held its 2025 Annual Meeting of Shareholders where the shareholders approved the 2025 Equity Incentive Plan, elected directors, approved executive compensation, and ratified KPMG LLP as the independent accounting firm for 2025. Additionally, the Board declared dividends on common and preferred stocks, payable in June 2025, reflecting the company’s ongoing commitment to shareholder returns.