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VALLEY NATIONAL BANCORP (VLY) Stock Fundamental Analysis

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

8.73  +0.1 (+1.16%)

After market: 8.73 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. VLY has a bad profitability rating. Also its financial health evaluation is rather negative. VLY has a correct valuation and a medium 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.
VLY had positive earnings in each of the past 5 years.
VLY had a positive operating cash flow in each 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

With a Return On Assets value of 0.57%, VLY is not doing good in the industry: 68.84% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 4.83%, VLY is doing worse than 78.14% of the companies in the same industry.
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

With a Profit Margin value of 19.44%, VLY is not doing good in the industry: 63.57% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, VLY has more shares outstanding
Compared to 5 years ago, VLY has more shares outstanding
VLY has about the same debt/assets ratio as last year.
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

The Debt to FCF ratio of VLY is 1.46, which is an excellent value as it means it would take VLY, only 1.46 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.46, VLY is doing good in the industry, outperforming 63.57% of the companies in the same industry.
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 71.61% 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
WACC22.67%
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 -34.74% 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 decrease in Revenue. In the last year, the revenue decreased by -2.40%.
The Revenue has been growing by 10.66% on average over the past years. This is quite good.
EPS 1Y (TTM)-34.74%
EPS 3Y-18.41%
EPS 5Y-7.49%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)-2.4%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.43%

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 22.57% on average per year.
The Revenue is expected to grow by 6.97% on average over the next years.
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

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.
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

A Price/Earnings ratio of 14.08 indicates a correct valuation of VLY.
Based on the Price/Earnings ratio, VLY is valued a bit more expensive than 66.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.92. VLY is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.46, the valuation of VLY can be described as very cheap.
VLY's Price/Forward Earnings ratio is rather cheap when compared to the industry. VLY is cheaper than 85.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. VLY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 14.08
Fwd PE 7.46
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 68.59% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.18
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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VLY's earnings are expected to grow with 22.57% in the coming years. This may justify a more expensive valuation.
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 5.10%, VLY is a good candidate for dividend investing.
VLY's Dividend Yield is rather good when compared to the industry average which is at 3.63. VLY pays more dividend than 86.43% of the companies in the same industry.
VLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
Industry RankSector Rank
Dividend Yield 5.1%

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.
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.
The dividend of VLY is growing, but earnings are growing more, so the dividend growth is 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 (4/24/2025, 8:00:02 PM)

After market: 8.73 0 (0%)

8.73

+0.1 (+1.16%)

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 Change1.04%
Ins Owners1.34%
Ins Owner Change0.21%
Market Cap4.89B
Analysts74.67
Price Target11.05 (26.58%)
Short Float %4.42%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 5.1%
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)-2.4%
PT rev (3m)0.69%
EPS NQ rev (1m)-2.07%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-1%
EPS NY rev (3m)3.94%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.81%
Valuation
Industry RankSector Rank
PE 14.08
Fwd PE 7.46
P/S 2.65
P/FCF 9.18
P/OCF 8.91
P/B 0.66
P/tB 0.9
EV/EBITDA N/A
EPS(TTM)0.62
EY7.1%
EPS(NY)1.17
Fwd EY13.4%
FCF(TTM)0.95
FCFY10.89%
OCF(TTM)0.98
OCFY11.22%
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
WACC22.67%
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)-2.4%
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%