VALLEY NATIONAL BANCORP (VLY) Stock Fundamental Analysis
USA - NASDAQ:VLY - US9197941076 - Common Stock
10.95 USD
+0.22 (+2.05%)
Overall VLY gets a fundamental rating of 3 out of 10. We evaluated VLY against 392 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. VLY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VLY was profitable.
In the past year VLY had a positive cash flow from operations.
Each year in the past 5 years VLY has been profitable.
VLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VLY has a worse Return On Assets (0.68%) than 63.01% of its industry peers.
VLY has a Return On Equity of 5.62%. This is in the lower half of the industry: VLY underperforms 72.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 5.62% | ||
| 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
1.3 Margins
VLY has a Profit Margin (22.27%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VLY has declined.
The Operating Margin and Gross Margin are not available for VLY so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.27% | ||
| 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
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
Compared to 1 year ago, VLY has about the same debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of VLY is 1.55, which is an excellent value as it means it would take VLY, only 1.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.55, VLY is in line with its industry, outperforming 58.42% of the companies in the same industry.
VLY has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.07, VLY is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC20.99%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for VLY have decreased strongly by -10.00% in the last year.
The Earnings Per Share has been decreasing by -7.49% on average over the past years.
Looking at the last year, VLY shows a small growth in Revenue. The Revenue has grown by 4.51% in the last 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)-10%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%76.92%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%9.3%
3.2 Future
The Earnings Per Share is expected to grow by 26.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.41% on average over the next years.
EPS Next Y49.94%
EPS Next 2Y36.61%
EPS Next 3Y26.9%
EPS Next 5YN/A
Revenue Next Year9.06%
Revenue Next 2Y8.98%
Revenue Next 3Y7.41%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.21, the valuation of VLY can be described as correct.
Based on the Price/Earnings ratio, VLY is valued a bit more expensive than 63.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of VLY to the average of the S&P500 Index (27.41), we can say VLY is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.31 indicates a reasonable valuation of VLY.
Based on the Price/Forward Earnings ratio, VLY is valued a bit cheaper than the industry average as 69.90% of the companies are valued more expensively.
VLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
61.99% of the companies in the same industry are cheaper than VLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.97 | ||
| EV/EBITDA | N/A |
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 26.90% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y36.61%
EPS Next 3Y26.9%
5. Dividend
5.1 Amount
VLY has a Yearly Dividend Yield of 3.96%.
Compared to an average industry Dividend Yield of 3.47, VLY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, VLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of VLY has a limited annual growth rate of 1.53%.
VLY has paid a dividend for at least 10 years, which is a reliable track record.
VLY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.53%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
62.54% of the earnings are spent on dividend by VLY. This is not a sustainable payout ratio.
The dividend of VLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.54%
EPS Next 2Y36.61%
EPS Next 3Y26.9%
NASDAQ:VLY (9/23/2025, 9:57:49 AM)
10.95
+0.22 (+2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners85.8%
Inst Owner Change-2.12%
Ins Owners1.31%
Ins Owner Change0.2%
Market Cap6.13B
Analysts74.67
Price Target11.32 (3.38%)
Short Float %4.14%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend0.47
Dividend Growth(5Y)1.53%
DP62.54%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.55%
Min EPS beat(2)-6%
Max EPS beat(2)2.9%
EPS beat(4)2
Avg EPS beat(4)-2.88%
Min EPS beat(4)-8.83%
Max EPS beat(4)2.9%
EPS beat(8)2
Avg EPS beat(8)-8.33%
EPS beat(12)3
Avg EPS beat(12)-6.87%
EPS beat(16)6
Avg EPS beat(16)-4.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)0.32%
Revenue beat(8)1
Avg Revenue beat(8)-1.5%
Revenue beat(12)2
Avg Revenue beat(12)-2.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.95%
PT rev (1m)3.52%
PT rev (3m)6.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 9.31 | ||
| P/S | 3.21 | ||
| P/FCF | 16.97 | ||
| P/OCF | 16.25 | ||
| P/B | 0.81 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.72
EY6.58%
EPS(NY)1.18
Fwd EY10.74%
FCF(TTM)0.65
FCFY5.89%
OCF(TTM)0.67
OCFY6.15%
SpS3.41
BVpS13.53
TBVpS9.99
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 5.62% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.27% | ||
| GM | N/A | ||
| FCFM | 18.89% |
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-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.31% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 84.83% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC20.99%
ROIC/WACCN/A
Cap/Depr(3y)58.08%
Cap/Depr(5y)51.11%
Cap/Sales(3y)2.87%
Cap/Sales(5y)2.67%
Profit Quality(3y)151.88%
Profit Quality(5y)132.43%
High Growth Momentum
Growth
EPS 1Y (TTM)-10%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%76.92%
EPS Next Y49.94%
EPS Next 2Y36.61%
EPS Next 3Y26.9%
EPS Next 5YN/A
Revenue 1Y (TTM)4.51%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%9.3%
Revenue Next Year9.06%
Revenue Next 2Y8.98%
Revenue Next 3Y7.41%
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-56.09%
FCF growth 3Y-12.61%
FCF growth 5Y-18.05%
OCF growth 1Y-58.36%
OCF growth 3Y-13.14%
OCF growth 5Y-17.83%