Old National Bancorp has roughly 466.85
M in cash with 330.38
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.59.
Our trade recommendations tool can cross-verify current
analyst consensus on Old National Bancorp and to analyze the firm potential to grow in the current economic cycle.
Investing in Old National, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Old National along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Old National
financial leverage refers to using borrowed capital as a funding source to finance Old National Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Old National financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Old National's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Old National's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Old National's total debt and its cash.
Old National Bancorp maintains Sharpe Ratio (i.e., Efficiency) of -0.0365, which implies the firm had -0.0365% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Old National Bancorp exposes twenty-one different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to check Old National Bancorp
coefficient of variation of
(28,847), and Risk Adjusted Performance of
(0.00075715) to confirm the risk estimate we provide.
Old National may start a correction in February
The variance is down to 2.7 as of today. Old National Bancorp exhibits very low volatility with skewness of -0.58 and kurtosis of 1.11. However, we advise investors to further study Old National Bancorp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Old National's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Old National's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Old National Investment
Whereas some other companies in the banks—regional industry are either recovering or due for a correction, Old National may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 24th of January 2023, our research shows that Old National is a rather very steady investment opportunity with a
very small odds of distress in the next two years. From a slightly different view, the entity currently appears to be
undervalued. Our concluding 90 days buy-sell recommendation on the company is
Strong Hold.
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Old National Bancorp. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com