Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $6.08B
• Dividend Yield: 4.34%
• Average Volume (3M): 13.35M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.00
• Revenue Growth: -1.94%
• EPS Growth: 41.35%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.28
• Shares Outstanding: 559,721,000
• 10 Day Avg. Volume: 15,269,089
• 30 Day Avg. Volume: 13,350,196
• PEG Ratio: -0.47
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 8.52
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 5.74
• Enterprise Value/Ebitda: 15.51
• 1Y Price Target: $13.73
• Price Target Upside: 26.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $11.00 ▲(1.20% Upside)

Valley National Bancorp's overall stock score reflects a stable financial position with strong profitability margins and a solid balance sheet. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. However, technical indicators suggest mixed momentum, and challenges in revenue and cash flow growth need to be addressed. The earnings call provided positive insights into net income and deposit growth, but these were not factored into the score due to the exclusion of the earnings call component.

Positive Factors

Core Deposit Growth

Strong core deposit growth enhances Valley's funding stability and reduces reliance on more expensive funding sources, supporting long-term financial health.

Noninterest Income Growth

Robust noninterest income growth diversifies revenue streams, reducing dependency on interest income and enhancing financial resilience.

Net Interest Margin Expansion

Consistent NIM expansion indicates effective interest rate risk management, supporting profitability and competitive positioning in the banking sector.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth suggests challenges in maintaining market share and could pressure future earnings if not addressed.

Increase in Nonaccrual Loans

Rising nonaccrual loans can indicate deteriorating asset quality, potentially leading to higher credit costs and impacting profitability.

Subdued Loan Growth

Subdued loan growth may limit future interest income potential, impacting long-term revenue generation and market competitiveness.

Valley National Bancorp Business Overview & Revenue Model

Company Description

Valley National Bancorp (VLY) is a financial holding company based in Wayne, New Jersey, primarily engaged in providing a wide range of banking and financial services through its subsidiary, Valley National Bank. The company operates across various sectors, including commercial banking, retail banking, and wealth management. Core products and services encompass personal and business loans, deposits, mortgages, treasury management, and investment services, catering to both individual and corporate clients across its regions of operation.

How the Company Makes Money

Valley National Bancorp generates revenue primarily through interest income from loans and interest-earning assets, such as securities. The bank offers various loan products, including commercial and industrial loans, residential mortgages, and consumer loans, which typically yield higher interest rates compared to the interest paid on deposits. Additionally, the company earns non-interest income through service fees, transaction fees, and commissions from its investment and wealth management divisions. Significant partnerships and relationships with other financial institutions and businesses enhance its ability to cross-sell services, expand its customer base, and improve overall revenue generation. Furthermore, Valley National Bancorp may benefit from favorable economic conditions, effective management of interest rate risk, and strategic acquisitions that can contribute to its earnings growth.

Valley National Bancorp Financial Statement Overview

Summary

Valley National Bancorp demonstrates a stable financial position with strong profitability margins and a solid balance sheet. However, the decline in revenue growth and free cash flow growth presents challenges that need to be addressed. The company shows resilience in maintaining profitability and managing leverage effectively, but future growth strategies should focus on reversing the negative revenue and cash flow trends.

Income Statement

Valley National Bancorp's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 48.5%, reflecting potential challenges in maintaining revenue streams. However, the company maintains a healthy gross profit margin of 46.4% and a net profit margin of 12.9%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also solid at 15.0% and 17.2%, respectively, suggesting operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity (ROE) stands at 6.1%, which is reasonable but shows room for improvement. The equity ratio is strong, reflecting a solid capital base and financial stability. Overall, the balance sheet suggests a well-managed capital structure with manageable debt levels.

Cash Flow

The cash flow statement highlights some concerns, with a negative free cash flow growth rate of 12.7% in the TTM period, indicating potential cash flow challenges. However, the operating cash flow to net income ratio is 0.68, suggesting that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is 1.0, indicating that all net income is converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.51B	3.57B	3.35B	2.18B	1.49B	1.57B
Gross Profit	1.63B	1.53B	1.83B	1.81B	1.33B	1.18B
EBITDA	602.66M	517.35M	761.54M	860.11M	691.70M	612.33M
Net Income	452.79M	380.27M	498.51M	568.85M	473.84M	390.61M
Balance Sheet
Total Assets	62.71B	62.49B	60.93B	57.46B	43.45B	40.69B
Cash, Cash Equivalents and Short-Term Investments	1.54B	2.12B	2.19B	2.21B	3.18B	2.67B
Total Debt	3.52B	3.69B	3.71B	2.10B	2.42B	3.78B
Total Liabilities	55.13B	55.06B	54.23B	51.06B	38.36B	36.09B
Stockholders Equity	7.58B	7.44B	6.70B	6.40B	5.08B	4.59B
Cash Flow
Free Cash Flow	377.06M	548.54M	378.19M	1.43B	837.14M	163.56M
Operating Cash Flow	377.06M	548.54M	378.19M	1.43B	837.14M	163.56M
Investing Cash Flow	-850.63M	-709.28M	-3.35B	-6.79B	-1.08B	-2.04B
Financing Cash Flow	650.92M	1.16B	2.91B	4.26B	964.35M	2.77B

Valley National Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLY, the sentiment is Positive. The current price of 10.87 is above the 20-day moving average (MA) of 10.61, above the 50-day MA of 10.59, and above the 200-day MA of 9.38, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLY.

Valley National Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	―	$5.26B	11.56	11.20%	2.90%	1.43%	19.58%
OZK	―	$5.10B	7.26	12.35%	3.87%	2.79%	2.11%
FNB	―	$5.65B	11.28	7.86%	3.05%	4.74%	27.01%
PB	―	$6.25B	11.76	7.09%	3.67%	0.55%	19.13%
GBCI	―	$4.84B	19.97	6.92%	3.23%	8.73%	26.19%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VLY	―	$6.08B	12.38	7.07%	4.34%	-1.94%	41.35%

Valley National Bancorp Corporate Events

Valley National Bancorp Reports Strong Q3 2025 Earnings

Valley National Bancorp, a regional bank holding company, operates Valley National Bank, providing a wide range of financial services across several states in the U.S., including New Jersey, New York, and Florida. In its third-quarter 2025 earnings report, Valley National Bancorp announced a significant increase in net income, reaching $163.4 million, or $0.28 per diluted share, compared to $133.2 million in the previous quarter. The company highlighted improvements in profitability and strategic positioning, driven by new leadership and a robust suite of financial products. Key financial metrics showed a rise in net interest income to $447.5 million and an increase in the net interest margin to 3.05%. Deposit balances grew by $450.5 million, while the loan portfolio experienced a slight decrease, primarily in commercial real estate and industrial loans. Credit quality showed improvement with a reduction in net loan charge-offs and accruing past due loans. Looking ahead, Valley National Bancorp remains optimistic about leveraging its unique market position to capitalize on future opportunities, supported by a strong financial foundation and strategic initiatives.

Valley National Bancorp Reports Q3 2025 Income Surge

Valley National Bancorp reported a significant increase in net income for the third quarter of 2025, reaching $163.4 million, up from $133.2 million in the previous quarter and $97.9 million in the same period of 2024. The company’s net interest margin improved due to higher yields on new loans and increased average loans and taxable investments. Despite a decrease in total loans, primarily in commercial real estate and industrial loans, the bank saw an increase in deposits and maintained strong credit quality with reduced loan charge-offs. The efficiency ratio improved, reflecting better cost management, although non-interest expenses saw a slight increase due to higher professional and legal fees.

The most recent analyst rating on (VLY) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Valley National Bancorp stock, see the VLY Stock Forecast page.

Valley National Bancorp Reports Strong Q2 2025 Results

Valley National Bancorp is a regional bank holding company operating primarily in the financial services sector, with a focus on providing banking services across several states in the U.S., including New Jersey, New York, and Florida. The company is known for its commitment to community growth and customer service.

Valley National Bancorp’s Earnings Call Highlights Growth and Challenges

Valley National Bancorp’s recent earnings call conveyed a generally positive sentiment, highlighting strong net income growth, significant deposit account additions, and impressive diversification in commercial loans, particularly in the health care and fund finance sectors. The company also reported robust noninterest income growth and an improved efficiency ratio. However, there are concerns about moderating loan growth, increased accruing past dues, and ongoing challenges related to commercial real estate (CRE) concentration.

Valley National Bancorp Reports Strong Q2 2025 Results

Valley National Bancorp announced its second quarter 2025 financial results, reporting a net income of $133.2 million, an increase from both the previous quarter and the same quarter last year. The company experienced growth in net interest income and margin, driven by higher yields on new loans and increased average loan balances. The loan portfolio saw a significant increase in commercial and industrial loans, while deposits also rose, supported by an increase in customer time deposits. The company redeemed $115 million in subordinated notes, resulting in a pre-tax loss, and saw improvements in credit quality with a reduction in loan loss provisions. These results reflect the company’s strategic focus on balance sheet strength and profitability, positioning it well for future growth.

The most recent analyst rating on (VLY) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Valley National Bancorp stock, see the VLY Stock Forecast page.