Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $6.13B
• Dividend Yield: 4.02%
• Average Volume (3M): 8.14M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.00
• Revenue Growth: 0.20%
• EPS Growth: 9.86%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 559,721,000
• 10 Day Avg. Volume: 9,395,392
• 30 Day Avg. Volume: 8,143,251
• 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: 1.38
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 14.02
• 1Y Price Target: $11.91
• Price Target Upside: 8.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $12.00 ▲(9.59% Upside)

Valley National Bancorp's overall stock score is driven by strong earnings call highlights, including net income and deposit growth, and positive technical indicators. The stable financial performance and fair valuation further support the score, though challenges in revenue and cash flow growth present risks.

Positive Factors

Net Income Growth

Strong net income growth indicates effective cost management and profitability, enhancing the company's financial stability and shareholder value.

Deposit Growth

Robust deposit growth strengthens the company's funding base, providing a stable source of capital for lending and investment activities.

Commercial Loan Diversification

Diversification in commercial loans reduces risk and enhances revenue stability, supporting long-term growth in targeted sectors like health care.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth poses challenges for sustaining profitability and may impact future earnings potential.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential liquidity issues, which could constrain the company's ability to invest in growth opportunities.

Loan Growth Guidance Adjustment

Adjusted loan growth guidance indicates potential challenges in expanding the loan portfolio, which may affect future interest income growth.

Valley National Bancorp Business Overview & Revenue Model

Company Description

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products. It operates through Commercial Lending, Consumer Lending, and Investment Management segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts, commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, foreign wire transfers services, and transaction accounts for non-resident aliens. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts and custom -tailored investment strategies for various retirement plans. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; and overdraft, drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. As of December 31,2021, it operated 232 branch offices in New Jersey, New York, Florida, and Alabama. The company was incorporated in 1927 and is headquartered in New York, New York.

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, challenges include a decline in revenue growth and free cash flow growth, which need addressing. The company maintains profitability and manages leverage effectively.

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: 10.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 10.95 is above the 20-day moving average (MA) of 10.54, above the 50-day MA of 9.87, and above the 200-day MA of 9.17, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 70.58 is Negative, neither overbought nor oversold. The STOCH value of 72.01 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
OZK	80 Outperform	5.97B	8.53	12.12%	3.23%	7.12%	2.47%
HOMB	77 Outperform	5.77B	13.40	10.63%	2.70%	4.40%	14.01%
GBCI	74 Outperform	5.89B	25.80	6.22%	2.66%	8.37%	17.00%
FNB	74 Outperform	5.85B	12.65	7.16%	2.95%	7.73%	8.39%
VLY	73 Outperform	$6.13B	14.02	6.33%	4.02%	0.20%	9.86%
PB	72 Outperform	6.27B	12.02	6.88%	3.52%	3.65%	20.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Valley National Bancorp Corporate Events

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.