Old National Return On Equity vs. Current Valuation

ONB Stock  USD 23.17  0.32  1.40%   
Taking into consideration Old National's profitability measurements, Old National's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Old National's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.10462025
Current Value
0.11
Quarterly Volatility
0.01963777
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Old National's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 59.85, whereas EV To Sales is forecasted to decline to 4.26. At present, Old National's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 611.1 M, whereas Accumulated Other Comprehensive Income is projected to grow to (701.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.780.88
Fairly Down
Slightly volatile
Net Profit Margin0.180.3303
Way Down
Slightly volatile
Operating Profit Margin0.770.4722
Way Up
Pretty Stable
Pretax Profit Margin0.220.4263
Way Down
Slightly volatile
Return On Assets0.01040.0119
Fairly Down
Slightly volatile
Return On Equity0.110.1046
Sufficiently Up
Pretty Stable
For Old National profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Old National to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Old National Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Old National's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Old National Bancorp over time as well as its relative position and ranking within its peers.
  

Old National's Revenue Breakdown by Earning Segment

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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Old National. If investors know Old will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Old National listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.10)
Dividend Share
0.56
Earnings Share
1.65
Revenue Per Share
5.767
Quarterly Revenue Growth
0.046
The market value of Old National Bancorp is measured differently than its book value, which is the value of Old that is recorded on the company's balance sheet. Investors also form their own opinion of Old National's value that differs from its market value or its book value, called intrinsic value, which is Old National's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Old National's market value can be influenced by many factors that don't directly affect Old National's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Old National's value and its price as these two are different measures arrived at by different means. Investors typically determine if Old National is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Old National's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Old National Bancorp Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Old National's current stock value. Our valuation model uses many indicators to compare Old National value to that of its competitors to determine the firm's financial worth.
Old National Bancorp is rated below average in return on equity category among its peers. It is rated top company in current valuation category among its peers reporting about  135,100,820,090  of Current Valuation per Return On Equity. At present, Old National's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Old National's earnings, one of the primary drivers of an investment's value.

Old Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Old National

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0892
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Old National

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
12.05 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Old Current Valuation vs Competition

Old National Bancorp is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is now estimated at about 29.74 Billion. Old National totals roughly 12.05 Billion in current valuation claiming about 41% of equities under Financials industry.

Old National Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Old National, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Old National will eventually generate negative long term returns. The profitability progress is the general direction of Old National's change in net profit over the period of time. It can combine multiple indicators of Old National, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-738.8 M-701.9 M
Operating Income751.3 M788.9 M
Net Income582 M611.1 M
Income Tax Expense169.3 M177.8 M
Income Before Tax751.3 M788.9 M
Total Other Income Expense Net751.3 M788.9 M
Net Income Applicable To Common Shares476.3 M500.1 M
Net Income From Continuing Ops650.2 M682.8 M
Non Operating Income Net Other876.6 K779.2 K
Net Interest Income1.5 B1.6 B
Interest Income2.1 B2.2 B
Change To Netincome256.3 M269.1 M
Net Income Per Share 2.00  2.10 
Income Quality 0.89  1.18 
Net Income Per E B T 0.77  0.62 

Old Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Old National. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Old National position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Old National's important profitability drivers and their relationship over time.

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When determining whether Old National Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Old National's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Old National Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Old National Bancorp Stock:
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You can also try the Stocks Directory module to find actively traded stocks across global markets.
To fully project Old National's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Old National Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Old National's income statement, its balance sheet, and the statement of cash flows.
Potential Old National investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Old National investors may work on each financial statement separately, they are all related. The changes in Old National's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Old National's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.