Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $427.96M
• Dividend Yield: 6.69%
• Average Volume (3M): 383.68K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.93
• Revenue Growth: 5.09%
• EPS Growth: N/A
• Country: US
• Employees: 552
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 64,744,520
• 10 Day Avg. Volume: 384,462
• 30 Day Avg. Volume: 383,682
• PEG Ratio: -0.12
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 18.88
• Enterprise Value/Market Cap: 3.86
• Enterprise Value/Revenue: 4.81
• Enterprise Value/Gross Profit: 10.90
• Enterprise Value/Ebitda: 47.66
• 1Y Price Target: $7.33
• Price Target Upside: 11.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $7.50 ▲(13.98% Upside)

Kearny Financial's overall stock score is driven by positive technical momentum and strong corporate event outcomes. While financial performance shows mixed results due to high leverage and declining revenue, the company's valuation is attractive with a reasonable P/E ratio and high dividend yield. The absence of earnings call data did not impact the score.

Kearny Financial Business Overview & Revenue Model

Company Description

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. The company offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It also provides various loans, such as multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one- to four-family first mortgage loans, and home equity loans and lines of credit; loans to individuals for the construction or renovation of one- to four-family residences, or for the construction of commercial real estate or multi-family residential buildings; overdraft lines of credit; and personal loans. In addition, the company engages in investment activities. As of August 18, 2021, it operated a total of 48 branch offices located throughout northern and central New Jersey and Brooklyn and Staten Island, New York. The company was founded in 1884 and is headquartered in Fairfield, New Jersey.

How the Company Makes Money

Kearny Financial makes money primarily through interest income generated from its lending activities. The company extends various types of loans, including residential mortgages, commercial real estate loans, and business loans, earning interest from borrowers. Additionally, Kearny Financial generates revenue from non-interest income sources, such as fees from deposit accounts, wealth management services, and other banking-related services. The company's profitability is influenced by interest rate trends, loan demand, and its ability to manage credit risk effectively. Partnerships with local businesses and community engagement also play a role in sustaining its revenue streams.

Kearny Financial Financial Statement Overview

Summary

Kearny Financial shows mixed financial performance. Despite improvements in profitability and cash flow generation, the company faces challenges with high leverage and declining revenue. The balance sheet stability is offset by risks associated with significant debt levels. The company needs to focus on revenue growth and managing leverage to enhance financial health.

Income Statement

Kearny Financial's income statement shows mixed performance. The company experienced a significant revenue decline of 98% in the most recent year, which is concerning. However, the gross profit margin improved slightly to 44.1%, indicating some efficiency in cost management. The net profit margin turned positive at 7.6% from a negative margin in the previous year, showing a recovery in profitability. Despite these improvements, the EBIT and EBITDA margins remain low at 9.0%, reflecting ongoing challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.68, indicating significant leverage, which poses a risk in volatile market conditions. The return on equity is modest at 3.5%, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 9.6%, showing a stable capital structure. Overall, while the company maintains a stable asset base, the high leverage could be a potential risk factor.

Cash Flow

Cash flow analysis indicates a positive trend with a 5.3% growth in free cash flow, suggesting improved cash generation capabilities. The operating cash flow to net income ratio is low at 0.08, indicating that operating cash flow is not significantly higher than net income, which could be a concern for liquidity. However, the free cash flow to net income ratio is strong at 86.3%, showing that a substantial portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	343.53M	343.53M	326.88M	296.48M	240.21M	256.06M
Gross Profit	151.63M	151.63M	134.38M	176.13M	218.06M	207.33M
EBITDA	34.68M	31.00M	-75.52M	58.67M	99.00M	91.34M
Net Income	26.07M	26.07M	-86.67M	40.81M	67.55M	63.23M
Balance Sheet
Total Assets	7.74B	7.74B	7.68B	8.06B	7.72B	7.28B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.18B	1.14B	1.30B	1.45B	1.74B
Total Debt	1.26B	1.26B	1.61B	1.51B	901.34M	685.88M
Total Liabilities	6.99B	6.99B	6.93B	7.20B	6.83B	6.24B
Stockholders Equity	745.96M	745.96M	753.57M	869.28M	894.00M	1.04B
Cash Flow
Free Cash Flow	21.39M	21.39M	42.62M	68.19M	78.38M	69.96M
Operating Cash Flow	24.77M	24.77M	43.97M	69.55M	81.30M	75.42M
Investing Cash Flow	41.11M	41.11M	258.12M	-417.92M	-479.95M	-83.97M
Financing Cash Flow	37.52M	37.52M	-308.74M	317.27M	432.41M	-104.56M

Kearny Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRNY, the sentiment is Positive. The current price of 6.58 is below the 20-day moving average (MA) of 6.60, above the 50-day MA of 6.31, and above the 200-day MA of 6.38, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRNY.

Kearny Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRBI	77 Outperform	443.19M	11.71	11.51%	0.73%	9.09%	23.58%
GCBC	75 Outperform	400.81M	12.87	―	1.60%	13.07%	25.72%
KRNY	71 Outperform	$427.96M	15.90	3.48%	6.69%	5.09%	―
CARE	71 Outperform	445.01M	14.42	6.38%	―	9.18%	153.68%
BSRR	69 Neutral	404.04M	10.26	5.89%	3.36%	0.85%	18.21%
FFIC	64 Neutral	470.20M	-11.63	-5.09%	6.35%	-7.00%	-233.54%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Kearny Financial Corporate Events

Kearny Financial Reports Strong Fiscal Year Results

On July 24, 2025, Kearny Financial Corp. announced its financial results for the fourth quarter and fiscal year ending June 30, 2025, reporting a net income of $26.1 million for the fiscal year compared to a net loss the previous year. The company declared a quarterly cash dividend of $0.11 per share, reflecting its strong financial performance and strategic execution, including a 23% growth in pre-tax, pre-provision earnings per share and a 10 basis point increase in net interest margin. The company also received regulatory approval to consolidate three branch locations, which is expected to have minimal financial impact.

Kearny Financial Amends Executive Retirement Plan

On June 18, 2025, Kearny Bank and its President and CEO, Craig L. Montanaro, amended the Supplemental Executive Retirement Plan (SERP) to allow benefits to increase starting July 1, 2025. This change impacts the Executive, who is the sole participant in the SERP, potentially enhancing his retirement benefits and reflecting strategic adjustments in executive compensation.