Associated Banc-Corp (ASBA)
Valuation Overview•Is Associated Banc-Corp Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
ASBA struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($575M) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (0.3%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $528.0M | +128.0% | — | — | +8.4% | |
| EBITDA | $14.4M | — | +2.4% | — | — | |
| Net Income | $0.00 | +285.5% | +10.4% | — | +10.2% | |
| EPS (Diluted) | $0.00 | +246.3% | +5.8% | +8.3% | +8.8% | |
| Free Cash Flow | $135.9M | +15.0% | -7.7% | +4.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | -22.2% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 0.3% | 27.7% | 34.4% | 35.6% |
| Net Margin | 15.7% | 17.6% | 22.2% | 22.8% |
| FCF Margin | 28.7% | 40.6% | 45.7% | 44.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | — | $0.81 | — | ||
| Q3'23 | — | $0.53 | — |
Total return is +8.9% (1Y), lagging the benchmark by -11.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +1.9% | -5.4% | — |
| 1Y | +8.9% | -11.9% | +6.9% |
| 3YCAGR | +13.4% | -5.0% | +24.6% |
| 5YCAGR | +3.5% | -7.8% | +21.7% |
| 10YCAGR | +1.7% | -11.8% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Associated Banc-Corp (ASBA) valuation, health, and returns.
Associated Banc-Corp is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +27.8% upside to DCF intrinsic value of $31.14)
Associated Banc-Corp has multiple valuation anchors: DCF Intrinsic Value: $31.14 | Peer Relative Fair Value: $39.69. A convergence of these signals offers higher conviction.
Associated Banc-Corp displays fair financial health with a composite quality score of 48/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.5%.
Associated Banc-Corp pays a 3.8% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 0.6% buyback yield.
Associated Banc-Corp's current growth trajectory is Accelerating. The company achieved +128.0% 1Y revenue growth and +246.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Associated Banc-Corp include: -4.5% 1-year max drawdown. Volatility risk is characterized by a beta of 0.17x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.