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VALLEY NATIONAL BANCORP (VLY) Stock Fundamental Analysis

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

8.9  +0.19 (+2.18%)

After market: 8.9 0 (0%)

Fundamental Rating

4

Overall VLY gets a fundamental rating of 4 out of 10. We evaluated VLY against 398 industry peers in the Banks industry. Both the profitability and financial health of VLY have multiple concerns. VLY is not valued too expensively and it also shows a decent growth rate. Finally VLY also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

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.
In the past 5 years VLY has always been profitable.
In the past 5 years VLY always reported a positive cash flow from operatings.
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

The Return On Assets of VLY (0.57%) is worse than 69.10% of its industry peers.
The Return On Equity of VLY (4.83%) is worse than 77.64% of its industry peers.
Industry RankSector Rank
ROA 0.57%
ROE 4.83%
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

VLY has a Profit Margin of 19.44%. This is in the lower half of the industry: VLY underperforms 63.82% of 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 RankSector Rank
OM N/A
PM (TTM) 19.44%
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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3

2. Health

2.1 Basic Checks

VLY does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VLY has been increased compared to 1 year ago.
Compared to 5 years ago, VLY has more shares outstanding
The debt/assets ratio for VLY has remained at the same level 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

VLY has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
VLY's Debt to FCF ratio of 1.46 is fine compared to the rest of the industry. VLY outperforms 62.06% of its industry peers.
VLY has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.10, VLY is in the better half of the industry, outperforming 70.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 1.46
Altman-Z N/A
ROIC/WACCN/A
WACC22.48%
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

VLY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.74%.
VLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.49% yearly.
VLY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.73%.
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)-34.74%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.43%

3.2 Future

The Earnings Per Share is expected to grow by 22.57% on average over the next years. This is a very strong growth
VLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y50.94%
EPS Next 2Y36.29%
EPS Next 3Y22.57%
EPS Next 5YN/A
Revenue Next Year9.97%
Revenue Next 2Y9.32%
Revenue Next 3Y6.97%
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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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.35, the valuation of VLY can be described as correct.
Based on the Price/Earnings ratio, VLY is valued a bit more expensive than 66.33% of the companies in the same industry.
VLY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.61, the valuation of VLY can be described as very cheap.
Based on the Price/Forward Earnings ratio, VLY is valued cheaper than 84.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VLY to the average of the S&P500 Index (20.86), we can say VLY is valued rather cheaply.
Industry RankSector Rank
PE 14.35
Fwd PE 7.61
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

Based on the Price/Free Cash Flow ratio, VLY is valued a bit cheaper than 69.10% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.36
EV/EBITDA N/A
VLY Per share dataVLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 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 22.57% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y36.29%
EPS Next 3Y22.57%

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.12%, VLY is a good candidate for dividend investing.
VLY's Dividend Yield is rather good when compared to the industry average which is at 3.52. VLY pays more dividend than 87.69% of the companies in the same industry.
VLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 5.12%

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.
As VLY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.53%
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 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

VLY pays out 69.54% of its income as dividend. This is not a sustainable payout ratio.
VLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.54%
EPS Next 2Y36.29%
EPS Next 3Y22.57%
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 (5/2/2025, 8:27:51 PM)

After market: 8.9 0 (0%)

8.9

+0.19 (+2.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners82.79%
Inst Owner Change1.23%
Ins Owners1.34%
Ins Owner Change0.21%
Market Cap4.98B
Analysts75.71
Price Target11.05 (24.16%)
Short Float %5.07%
Short Ratio2.96
Dividend
Industry RankSector Rank
Dividend Yield 5.12%
Yearly Dividend0.47
Dividend Growth(5Y)1.53%
DP69.54%
Div Incr Years0
Div Non Decr Years9
Ex-Date03-14 2025-03-14 (0.11)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.2%
Min EPS beat(2)-8.83%
Max EPS beat(2)0.43%
EPS beat(4)1
Avg EPS beat(4)-12.04%
Min EPS beat(4)-33.43%
Max EPS beat(4)0.43%
EPS beat(8)1
Avg EPS beat(8)-9.7%
EPS beat(12)4
Avg EPS beat(12)-5.69%
EPS beat(16)5
Avg EPS beat(16)-4.73%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)0.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.47%
Revenue beat(12)4
Avg Revenue beat(12)-1.24%
Revenue beat(16)7
Avg Revenue beat(16)-0.99%
PT rev (1m)-6.25%
PT rev (3m)-3.27%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)3.94%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)2.45%
Valuation
Industry RankSector Rank
PE 14.35
Fwd PE 7.61
P/S 2.7
P/FCF 9.36
P/OCF 9.09
P/B 0.67
P/tB 0.92
EV/EBITDA N/A
EPS(TTM)0.62
EY6.97%
EPS(NY)1.17
Fwd EY13.15%
FCF(TTM)0.95
FCFY10.68%
OCF(TTM)0.98
OCFY11.01%
SpS3.3
BVpS13.28
TBVpS9.71
PEG (NY)0.28
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.57%
ROE 4.83%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 19.44%
GM N/A
FCFM 28.84%
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-Score5
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 1.46
Debt/EBITDA N/A
Cap/Depr 20.48%
Cap/Sales 0.87%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 148.34%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC22.48%
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)-34.74%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%-5.26%
EPS Next Y50.94%
EPS Next 2Y36.29%
EPS Next 3Y22.57%
EPS Next 5YN/A
Revenue 1Y (TTM)0.73%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.43%
Revenue Next Year9.97%
Revenue Next 2Y9.32%
Revenue Next 3Y6.97%
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 1Y76.2%
FCF growth 3Y-12.61%
FCF growth 5Y-18.05%
OCF growth 1Y45.04%
OCF growth 3Y-13.14%
OCF growth 5Y-17.83%