ConnectOne Bancorp, Inc. (CNOBP) stock analysis

P/E above its 5-year median

ConnectOne Bancorp's P/E of 11.2 is above its own 5-year median of 10.5.

P/E below the industry

ConnectOne Bancorp's P/E of 11.2 is below the Commercial Banks median of 12.3.

P/S below the industry

ConnectOne Bancorp's price-to-sales of 3.57 is below the Commercial Banks median of 3.64.

P/B below the industry

ConnectOne Bancorp's price-to-book of 1.01 is below the Commercial Banks median of 1.27.

Trading below fair value

The share price of $32.11 is below our fair value estimate of $32.79.

Margin of safety under 20%

The price is 2.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -18.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 145% over the last twelve months, against a 5-year average of 2.4% a year.

Growing faster than the industry

Revenue grew 31.5% over the last twelve months; the Commercial Banks median is 11.4%.

Guidance issued

The latest outlook (fourth quarter of 2026 Transaction costs related to the restructuring, Oct 22, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 9.6% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.0%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

ConnectOne Bancorp's return on equity of 9.6% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 2.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 33.2% over the last twelve months, against a 5-year average of 33.5%.

Net margin above the industry

ConnectOne Bancorp's net margin of 33.2% is above the Commercial Banks median of 30.0%.

Well capitalized

Equity is 10.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 96.0% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.1% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 49.8% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 3.6% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

ConnectOne Bancorp paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; ConnectOne Bancorp yields 2.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 25.1% of net income.

Covered by free cash flow

Dividends take 21.1% of free cash flow.