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VALLEY NATIONAL BANCORP (VLY) Stock Fundamental Analysis

NASDAQ:VLY - Nasdaq - US9197941076 - Common Stock - Currency: USD

9.535  -0.3 (-3.1%)

After market: 9.53 -0.01 (-0.05%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to VLY. VLY was compared to 405 industry peers in the Banks industry. VLY has a bad profitability rating. Also its financial health evaluation is rather negative. VLY has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

VLY had positive earnings in the past year.
In the past year VLY has reported a negative cash flow from operations.
In the past 5 years VLY has always been profitable.
VLY had a positive operating cash flow in 4 of the past 5 years.
VLY Yearly Net Income VS EBIT VS OCF VS FCFVLY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

1.2 Ratios

VLY has a Return On Assets of 0.51%. This is in the lower half of the industry: VLY underperforms 71.68% of its industry peers.
The Return On Equity of VLY (4.56%) is worse than 76.44% of its industry peers.
Industry RankSector Rank
ROA 0.51%
ROE 4.56%
ROIC N/A
ROA(3y)0.78%
ROA(5y)0.86%
ROE(3y)6.9%
ROE(5y)7.6%
ROIC(3y)N/A
ROIC(5y)N/A
VLY Yearly ROA, ROE, ROICVLY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

Looking at the Profit Margin, with a value of 17.44%, VLY is doing worse than 67.17% of the companies in the same industry.
In the last couple of years the Profit Margin of VLY has declined.
VLY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 17.44%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.82%
PM growth 5Y-6.15%
GM growth 3YN/A
GM growth 5YN/A
VLY Yearly Profit, Operating, Gross MarginsVLY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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1

2. Health

2.1 Basic Checks

VLY does not have a ROIC to compare to the WACC, probably because it is not profitable.
VLY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VLY has more shares outstanding
The debt/assets ratio for VLY is higher compared to a year ago.
VLY Yearly Shares OutstandingVLY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
VLY Yearly Total Debt VS Total AssetsVLY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

A Debt/Equity ratio of 0.11 indicates that VLY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.11, VLY is in the better half of the industry, outperforming 72.18% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC18.83%
VLY Yearly LT Debt VS Equity VS FCFVLY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
VLY Yearly Current Assets VS Current LiabilitesVLY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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4

3. Growth

3.1 Past

The earnings per share for VLY have decreased strongly by -40.57% in the last year.
VLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.49% yearly.
The Revenue has decreased by -2.40% in the past year.
VLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.66% yearly.
EPS 1Y (TTM)-40.57%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-2.4%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.38%

3.2 Future

Based on estimates for the next years, VLY will show a very strong growth in Earnings Per Share. The EPS will grow by 25.30% on average per year.
VLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y52.46%
EPS Next 2Y36.49%
EPS Next 3Y25.3%
EPS Next 5YN/A
Revenue Next Year10.13%
Revenue Next 2Y9.32%
Revenue Next 3Y7.5%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
VLY Yearly Revenue VS EstimatesVLY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
VLY Yearly EPS VS EstimatesVLY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.13 indicates a correct valuation of VLY.
66.42% of the companies in the same industry are cheaper than VLY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. VLY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.93 indicates a reasonable valuation of VLY.
Based on the Price/Forward Earnings ratio, VLY is valued a bit cheaper than the industry average as 71.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. VLY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.13
Fwd PE 9.93
VLY Price Earnings VS Forward Price EarningsVLY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
VLY Per share dataVLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

VLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VLY's earnings are expected to grow with 25.30% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y36.49%
EPS Next 3Y25.3%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.47%, VLY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.18, VLY pays a better dividend. On top of this VLY pays more dividend than 86.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, VLY pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.47%

5.2 History

The dividend of VLY decreases each year by -1.89%.
VLY has paid a dividend for at least 10 years, which is a reliable track record.
VLY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-1.89%
Div Incr Years0
Div Non Decr Years9
VLY Yearly Dividends per shareVLY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

VLY pays out 77.03% of its income as dividend. This is not a sustainable payout ratio.
DP77.03%
EPS Next 2Y36.49%
EPS Next 3Y25.3%
VLY Yearly Income VS Free CF VS DividendVLY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
VLY Dividend Payout.VLY Dividend Payout, showing the Payout Ratio.VLY Dividend Payout.PayoutRetained Earnings

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VALLEY NATIONAL BANCORP

NASDAQ:VLY (2/21/2025, 8:00:01 PM)

After market: 9.53 -0.01 (-0.05%)

9.535

-0.3 (-3.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-23 2025-01-23/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners82.79%
Inst Owner Change15.96%
Ins Owners1.34%
Ins Owner Change-0.22%
Market Cap5.33B
Analysts73.33
Price Target11.79 (23.65%)
Short Float %5.04%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield 4.47%
Yearly Dividend0.47
Dividend Growth(5Y)-1.89%
DP77.03%
Div Incr Years0
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.5%
Min EPS beat(2)-33.43%
Max EPS beat(2)0.43%
EPS beat(4)1
Avg EPS beat(4)-13.47%
Min EPS beat(4)-33.43%
Max EPS beat(4)0.43%
EPS beat(8)1
Avg EPS beat(8)-9.06%
EPS beat(12)4
Avg EPS beat(12)-5.29%
EPS beat(16)6
Avg EPS beat(16)-4.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-4.83%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.84%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)7
Avg Revenue beat(16)-1%
PT rev (1m)3.18%
PT rev (3m)7%
EPS NQ rev (1m)-5.54%
EPS NQ rev (3m)-7.78%
EPS NY rev (1m)4.99%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)2.6%
Revenue NY rev (3m)3.48%
Valuation
Industry RankSector Rank
PE 15.13
Fwd PE 9.93
P/S 2.92
P/FCF N/A
P/OCF N/A
P/B 0.76
P/tB 1.07
EV/EBITDA N/A
EPS(TTM)0.63
EY6.61%
EPS(NY)0.96
Fwd EY10.07%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)-0.22
OCFYN/A
SpS3.26
BVpS12.48
TBVpS8.89
PEG (NY)0.29
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.51%
ROE 4.56%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 17.44%
GM N/A
FCFM N/A
ROA(3y)0.78%
ROA(5y)0.86%
ROE(3y)6.9%
ROE(5y)7.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.82%
PM growth 5Y-6.15%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 17.99%
Cap/Sales 0.78%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score3
WACC18.83%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.57%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%-40.91%
EPS Next Y52.46%
EPS Next 2Y36.49%
EPS Next 3Y25.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.4%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.38%
Revenue Next Year10.13%
Revenue Next 2Y9.32%
Revenue Next 3Y7.5%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-117.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-114.3%
OCF growth 3YN/A
OCF growth 5YN/A