VALLEY NATIONAL BANCORP (VLY) Stock Fundamental Analysis
NASDAQ:VLY - Nasdaq - US9197941076 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to VLY. VLY was compared to 395 industry peers in the Banks industry. VLY has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
VLY had positive earnings in each of the past 5 years.
In the past 5 years VLY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VLY (0.59%) is worse than 69.87% of its industry peers.
VLY has a Return On Equity of 4.88%. This is in the lower half of the industry: VLY underperforms 77.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 4.88% | ||
| 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 worse Profit Margin (19.57%) than 64.81% 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) | 19.57% | ||
| 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.
The debt/assets ratio for VLY has remained at the same level compared to a year ago.
2.2 Solvency
VLY has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.84, VLY is in line with its industry, outperforming 52.41% 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.
VLY's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. VLY outperforms 70.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC23.4%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
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%.
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 0.73% in the last year.
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)0.73%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.15%
3.2 Future
The Earnings Per Share is expected to grow by 25.72% 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 7.04% yearly.
EPS Next Y49.46%
EPS Next 2Y35.83%
EPS Next 3Y25.72%
EPS Next 5YN/A
Revenue Next Year9.17%
Revenue Next 2Y9.03%
Revenue Next 3Y7.04%
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
With a Price/Earnings ratio of 13.70, VLY is valued correctly.
65.57% of the companies in the same industry are cheaper than VLY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VLY to the average of the S&P500 Index (26.57), we can say VLY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 7.31, 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 82.78% of the companies in the same industry.
VLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
VLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | N/A |
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 25.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y35.83%
EPS Next 3Y25.72%
5. Dividend
5.1 Amount
VLY has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 3.46, VLY pays a better dividend. On top of this VLY pays more dividend than 86.08% of the companies listed in the same industry.
VLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
VLY pays out 70.36% 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.
DP70.36%
EPS Next 2Y35.83%
EPS Next 3Y25.72%
NASDAQ:VLY (6/17/2025, 11:27:51 AM)
8.495
-0.14 (-1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners85.5%
Inst Owner Change4.05%
Ins Owners1.31%
Ins Owner Change0.32%
Market Cap4.76B
Analysts75.71
Price Target10.65 (25.37%)
Short Float %5.24%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend0.47
Dividend Growth(5Y)1.53%
DP70.36%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.42%
Min EPS beat(2)-8.83%
Max EPS beat(2)-6%
EPS beat(4)1
Avg EPS beat(4)-11.96%
Min EPS beat(4)-33.43%
Max EPS beat(4)0.43%
EPS beat(8)1
Avg EPS beat(8)-9.15%
EPS beat(12)3
Avg EPS beat(12)-6.21%
EPS beat(16)5
Avg EPS beat(16)-4.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)0.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)0.32%
Revenue beat(8)1
Avg Revenue beat(8)-1.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.86%
PT rev (1m)0%
PT rev (3m)-9.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 7.31 | ||
| P/S | 2.55 | ||
| P/FCF | 11.43 | ||
| P/OCF | 11.02 | ||
| P/B | 0.63 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.62
EY7.3%
EPS(NY)1.16
Fwd EY13.68%
FCF(TTM)0.74
FCFY8.75%
OCF(TTM)0.77
OCFY9.07%
SpS3.34
BVpS13.38
TBVpS9.83
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 4.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 19.57% | ||
| GM | N/A | ||
| FCFM | 22.27% |
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-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 20.32% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 113.81% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC23.4%
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 Y49.46%
EPS Next 2Y35.83%
EPS Next 3Y25.72%
EPS Next 5YN/A
Revenue 1Y (TTM)0.73%
Revenue growth 3Y10.59%
Revenue growth 5Y10.66%
Sales Q2Q%5.15%
Revenue Next Year9.17%
Revenue Next 2Y9.03%
Revenue Next 3Y7.04%
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-30.42%
FCF growth 3Y-12.61%
FCF growth 5Y-18.05%
OCF growth 1Y-34.84%
OCF growth 3Y-13.14%
OCF growth 5Y-17.83%