Old National Bancorp (ONBPP) stock analysis

P/E below its 5-year median

Old National Bancorp's P/E of 11.2 is below its own 5-year median of 11.7.

P/E below the industry

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

P/S below the industry

Old National Bancorp's price-to-sales of 3.40 is below the Commercial Banks median of 3.64.

P/B below the industry

Old National Bancorp's price-to-book of 1.12 is below the Commercial Banks median of 1.27.

Trading below fair value

The share price of $25.09 is below our fair value estimate of $26.22.

Margin of safety under 20%

The price is 4.3% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.5% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 6.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 56.1% over the last twelve months, against a 5-year average of 24.2% a year.

Growing faster than the industry

Revenue grew 34.1% over the last twelve months; the Commercial Banks median is 11.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 10.6% over the last twelve months and averaged 9.8% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.2%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Old National Bancorp's return on equity of 10.6% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 24.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 31.4% over the last twelve months, against a 5-year average of 66.5%.

Net margin above the industry

Old National Bancorp's net margin of 31.4% is above the Commercial Banks median of 30.0%.

Well capitalized

Equity is 11.6% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 89.4% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.2% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 55.6% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 3.3% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Old National 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; Old National Bancorp yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 26.8% of net income.

Covered by free cash flow

Dividends take 25.2% of free cash flow.