Old National Bancorp (ONB) Stock Analysis

Company Overview

Old National Bancorp functions as the bank holding company for Old National Bank, delivering consumer and commercial banking services throughout the United States. The institution operates within the Financial Services sector, specifically classified under the Banks - Regional industry, which defines its operational scope and regulatory environment. The company currently maintains a market capitalization of $8.35B and employs a workforce of 4,971 individuals to support its operations. With a trailing twelve-month revenue of $2.30B, the market cap and revenue figures indicate a substantial market position that reflects significant scale within the regional banking landscape.

Financial Health

The company reported a revenue of $2.30B and a net income of $653.12M over the trailing twelve months, while EBITDA data is not available in the provided metrics. The substantial gap between the $2.30B revenue and the $653.12M net income reveals a cost structure where operating expenses, such as personnel and overhead, consume a significant portion of gross receipts before reaching the bottom line. Free cash flow figures are not reported for this entity, which limits the ability to quantify immediate financial flexibility through cash generation metrics rather than accounting income. The gross margin is recorded at 0.0%, a standard characteristic for financial institutions that do not hold inventory, while the operating margin stands at 47.6% and the profit margin is 29.1%. These margin levels indicate that the company retains nearly half of its operating revenue after covering internal costs, and roughly 29% of total revenue as net profit. The total cash balance of $1.98B is held against a total debt obligation of $7.94B, though the debt-to-equity ratio is not disclosed. While the cash position provides liquidity, the debt level suggests a leveraged balance sheet typical for banking operations, as the company utilizes borrowed funds to amplify returns. Current ratio data is not provided, preventing a direct assessment of short-term liquidity based on that specific metric. Return on equity is 9.0% and return on assets is 1.1%, metrics that reveal management effectiveness in generating returns on shareholder capital and utilizing the asset base, respectively.

Valuation Assessment

The trailing P/E ratio is 11.97, while the forward P/E is 7.52, implying that the market expects a significant acceleration in earnings growth relative to current levels. The price-to-book ratio is 1.01, indicating that the stock trades at a value essentially equal to its book value without a significant market premium or discount. The price-to-sales ratio is 3.63 and the EV/EBITDA metric is not available, suggesting valuation is primarily driven by earnings and sales multiples rather than enterprise value measures. The 52-week high is $26.17 and the 52-week low is $16.83; without a specific current price provided in the source facts, the relative trading position cannot be calculated from the available data points alone. The beta is 0.83, which means the stock exhibits lower price volatility relative to the broader market, moving less aggressively than the market index during periods of fluctuation.

Growth & Income

Revenue growth year-over-year is 41.4% and earnings growth year-over-year is 17.2%, indicating that earnings are growing at a slower pace than revenue in this specific period. For dividend payers, the dividend yield is 2.7% and the payout ratio is 31.3%, a level that suggests the dividend is highly sustainable given the company's robust earnings generation. The payout ratio of 31.3% allows the company to retain a majority of its profits for reinvestment or balance sheet strengthening while still returning capital to shareholders. The overall growth and income profile presents a scenario of strong revenue expansion supported by a conservative and sustainable dividend policy that provides income stability.