VALLEY NATIONAL BANCORP (VLY) Stock Fundamental Analysis
NASDAQ:VLY - US9197941076 - Common Stock
10.46 USD
+0.01 (+0.1%)
10.46 USD
0 (0%)
Overall VLY gets a fundamental rating of 3 out of 10. We evaluated VLY against 395 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.
1. Profitability
1.1 Basic Checks
VLY had positive earnings in the past year.
VLY had a positive operating cash flow in the past year.
In the past 5 years VLY has always been profitable.
In the past 5 years VLY always reported a positive cash flow from operatings.
1.2 Ratios
VLY has a Return On Assets of 0.68%. This is in the lower half of the industry: VLY underperforms 63.04% of its industry peers.
VLY has a Return On Equity of 5.62%. This is in the lower half of the industry: VLY underperforms 72.91% 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's Profit Margin of 22.27% is in line compared to the rest of the industry. VLY outperforms 44.30% of its industry peers.
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 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.
The number of shares outstanding for VLY has been increased compared to 5 years ago.
VLY has about the same debt/assets ratio as last year.
2.2 Solvency
VLY has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
The Debt to FCF ratio of VLY (1.55) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.07 indicates that VLY is not too dependend on debt financing.
VLY has a Debt to Equity ratio of 0.07. This is in the better half of the industry: VLY outperforms 76.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.16%
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.
Measured over the past years, VLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.49% on average per year.
VLY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.51%.
The Revenue has been growing by 10.66% on average over the past years. This is quite good.
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
Based on estimates for the next years, VLY will show a small growth in Revenue. The Revenue will grow by 7.41% on average per year.
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
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.
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
A Price/Earnings ratio of 14.53 indicates a correct valuation of VLY.
Compared to the rest of the industry, the Price/Earnings ratio of VLY indicates a slightly more expensive valuation: VLY is more expensive than 62.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VLY to the average of the S&P500 Index (27.13), we can say VLY is valued slightly cheaper.
VLY is valuated reasonably with a Price/Forward Earnings ratio of 8.90.
VLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VLY is cheaper than 75.44% of the companies in the same industry.
VLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, VLY is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.21 | ||
| 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)0.29
PEG (5Y)N/A
EPS Next 2Y36.61%
EPS Next 3Y26.9%
5. Dividend
5.1 Amount
VLY has a Yearly Dividend Yield of 4.21%, which is a nice return.
Compared to an average industry Dividend Yield of 3.17, VLY pays a better dividend. On top of this VLY pays more dividend than 84.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of VLY has a limited annual growth rate of 1.53%.
VLY has been paying a dividend for at least 10 years, so it has a reliable track record.
VLY has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
VLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.54%
EPS Next 2Y36.61%
EPS Next 3Y26.9%
10.46
+0.01 (+0.1%)
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 Cap5.85B
Analysts74.67
Price Target10.94 (4.59%)
Short Float %4.66%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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)1.51%
PT rev (3m)2.73%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)1.08%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 8.9 | ||
| P/S | 3.06 | ||
| P/FCF | 16.21 | ||
| P/OCF | 15.53 | ||
| P/B | 0.77 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.72
EY6.88%
EPS(NY)1.18
Fwd EY11.24%
FCF(TTM)0.65
FCFY6.17%
OCF(TTM)0.67
OCFY6.44%
SpS3.41
BVpS13.53
TBVpS9.99
PEG (NY)0.29
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
WACC21.16%
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%