Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $393.94M
• Dividend Yield: 7.21%
• Average Volume (3M): 387.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 11.26%
• EPS Growth: -498.90%
• Country: US
• Employees: 552
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): -1.13
• Shares Outstanding: 64,579,680
• 10 Day Avg. Volume: 391,188
• 30 Day Avg. Volume: 387,067
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.67
• Price to Cash Flow (P/CF): -38.30
• P/FCF Ratio: 2.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.75
• Price Target Upside: 25.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Kearny Financial faces significant financial challenges, with declining revenues and profitability being key concerns. Technical indicators suggest bearish momentum. The high dividend yield is a bright spot for income-oriented investors, but the negative P/E ratio and financial instability warrant caution. Positive corporate events provide some optimism, but risks remain prevalent.

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 Corp. primarily generates revenue through its banking operations. The company earns money from interest income, which is the difference between the interest it earns on loans and the interest it pays on deposits. Kearny Bank offers various loan products, including residential and commercial real estate loans, which contribute significantly to its interest income. Additionally, the bank generates non-interest income through fees and service charges associated with deposit accounts, loan servicing, and other financial services. The company also invests in securities, which provide additional income streams. Strategic partnerships and community involvement enhance its market presence and customer base, further supporting its revenue generation.

Kearny Financial Financial Statement Overview

Summary

Kearny Financial's overall financial health shows significant challenges, primarily driven by declining revenues and profitability, despite maintaining a strong cash position and no debt. The negative income trends and inconsistent cash flow growth indicate potential risks that need to be addressed to improve financial stability.

Income Statement

The income statement shows a concerning trend with declining revenue and negative net income in the recent periods. The TTM (Trailing-Twelve-Months) indicates a net loss of $70 million and a negative net profit margin. This suggests challenges in revenue generation and cost management.

Balance Sheet

The balance sheet reveals a relatively strong equity position with no current debt, leading to a favorable debt-to-equity ratio. However, the decline in stockholders' equity and total assets over time could pose risks to financial stability. The company maintains a good cash position, which is a positive aspect.

Cash Flow

The cash flow statement indicates fluctuations in free cash flow and operating cash flow. Although the TTM shows positive free cash flow, the overall growth trend is inconsistent, and the operating cash flow to net income ratio is concerning due to net losses, suggesting potential liquidity challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
293.64M	134.38M	178.62M	210.54M	206.21M	169.07M
	Gross Profit
293.64M	140.60M	178.62M	210.54M	206.21M	169.07M
	EBIT
106.17M	0.00	52.38M	122.02M	84.50M	57.25M
	EBITDA
18.82M	0.00	58.67M	99.00M	91.34M	63.06M
	Net Income Common Stockholders
-70.02M	-86.67M	40.81M	67.55M	63.23M	44.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	63.86M	1.30B	1.45B	1.74B	1.57B
	Total Assets
7.73B	7.68B	8.06B	7.72B	7.28B	6.76B
	Total Debt
1.26B	1.61B	1.51B	901.34M	685.88M	1.17B
	Net Debt
1.12B	1.55B	1.44B	799.72M	618.02M	992.20M
	Total Liabilities
6.99B	6.93B	1.51B	6.83B	685.88M	5.67B
	Stockholders Equity
744.85M	753.57M	869.28M	894.00M	1.04B	1.08B
Cash Flow		Free Cash Flow
25.20M	42.62M	68.19M	78.38M	69.96M	13.86M
	Operating Cash Flow
26.52M	43.97M	69.55M	81.30M	75.42M	19.82M
	Investing Cash Flow
125.02M	258.12M	-417.92M	-479.95M	-83.97M	84.97M
	Financing Cash Flow
-132.16M	-308.74M	317.27M	432.41M	-104.56M	37.24M

Kearny Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRNY, the sentiment is Neutral. The current price of 6.16 is above the 20-day moving average (MA) of 5.99, below the 50-day MA of 6.42, and below the 200-day MA of 6.79, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KRNY.

Kearny Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	77 Outperform	$422.42M	9.85	15.17%	1.26%	6.99%	12.46%
FBIZ	75 Outperform	$403.85M	9.36	13.98%	2.14%	15.98%	19.35%
GCBC	63 Neutral	$364.88M	13.85	12.73%	1.63%	15.35%	-1.43%
Sector *	63 Neutral	$12.06B	9.31	8.10%	79.51%	12.80%	-4.67%
BSRR	62 Neutral	$365.93M	9.39	11.67%	3.63%	5.69%	19.91%
NRIM	56 Neutral	$416.50M	11.39	14.73%	3.30%	22.97%	47.91%
KRNY	51 Neutral	$393.94M	―	-8.79%	7.21%	11.26%	-498.90%

Kearny Financial Corporate Events

Kearny Financial Reports Earnings and Declares Dividend

Kearny Financial Corp. announced its fiscal second-quarter results for the period ending December 31, 2024, reporting a net income of $6.6 million, an increase from $6.1 million in the previous quarter. The company declared a quarterly cash dividend of $0.11 per share, reflecting its optimistic outlook on deposit growth and interest margin expansion. With a 3.7% growth in deposits and a decrease in borrowings, Kearny Financial is strategically positioned to leverage positive deposit trends and reinvest low-coupon cash flows to support future earnings, despite moderated market expectations for rate cuts.