Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $454.47M
• Dividend Yield: 5.8%
• Average Volume (3M): 306.40K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.90
• Revenue Growth: 4.38%
• EPS Growth: N/A
• Country: US
• Employees: 552
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.15
• Shares Outstanding: 64,739,150
• 10 Day Avg. Volume: 248,472
• 30 Day Avg. Volume: 306,397
• 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: 5.04
• Enterprise Value/Revenue: 6.66
• Enterprise Value/Gross Profit: 13.98
• Enterprise Value/Ebitda: 52.89
• 1Y Price Target: $8.50
• Price Target Upside: 21.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.69
• Revenue Forecast (FY): $183.79M

• Rating: 65 Neutral
• Price Target: $7.50 ▲(6.84% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by improving financial performance supported by strong free cash flow, alongside constructive technical trends with the stock trading above key moving averages. Valuation and dividend yield add support, while the overall score is held back by modest ROE, meaningful leverage, and a mixed growth/volatility profile.

Positive Factors

Strong free cash flow generation

Consistent TTM free cash flow roughly matching reported earnings indicates high earnings quality and internal funding capacity. This durable cash generation supports dividends, opportunistic balance-sheet repair or investment in automation and lending initiatives, improving resilience over the next 2–6 months.

Earnings recovery and margin improvement

A rebound to positive net income and a restored ~9% net margin signals operational recovery and better credit outcomes. Sustained profitability reduces rollover risk from prior losses, bolsters retained earnings and allows management to pursue growth or capital-return programs over the medium term.

Balance-sheet optimization and strategic initiatives

Reducing NPAs and growing core deposits lowers funding costs and reliance on wholesale borrowings. The automation partnership and new residential lending team are structural moves to raise efficiency and diversify fee income, supporting steadier earnings and lower funding vulnerability over time.

Negative Factors

Meaningful leverage vs. historical levels

Elevated debt-to-equity near 1.45x constrains capital flexibility and raises sensitivity to credit or interest-rate stress. Even with recent improvement, leverage above prior low points means a higher structural risk to earnings and capital actions, limiting durable strategic options.

Modest return on equity

A TTM ROE near 4.3% indicates limited profitability against invested capital, making it harder to generate attractive shareholder returns without higher growth or margin expansion. Persistently low ROE can constrain reinvestment and make capital allocation choices more difficult.

Revenue softness and earnings volatility

Declining TTM revenue and historical swings in profitability reduce predictability of net interest income and fee streams. This structural volatility complicates forecasting, capital planning and provisioning, raising the chance that temporary shocks could materially affect results in the next several quarters.

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 traditional banking spread and fee-based activities. The core earnings engine is net interest income: the bank collects interest and related income on its loan portfolio (such as residential real estate loans and commercial credits) and on interest-earning securities and cash balances, and pays interest on its funding sources—mainly customer deposits (checking, savings, money market, and certificates of deposit) and, when used, other borrowings. The difference between interest income and interest expense (net interest margin) is typically the largest contributor to revenue for a bank of this type and is influenced by loan growth, deposit mix, pricing competition for deposits, and changes in market interest rates. In addition to net interest income, the company generates non-interest income from banking fees and services. These commonly include service charges and account-related fees (e.g., certain deposit account fees), fees associated with originating and processing loans (such as certain loan-related fees and charges), and other ancillary banking income; specific line-item categories and their relative size are disclosed in the company’s periodic filings. Key factors affecting earnings include credit performance (loan losses and provisions can reduce profitability), the composition and duration of the loan and securities portfolios, operating expenses to run branch and digital platforms, and regulatory capital and liquidity requirements. Material revenue-sharing partnerships or customer-facing joint ventures are not confirmed here; if such arrangements exist, they are not available from the information provided and should be verified in KRNY’s SEC filings.

Kearny Financial Financial Statement Overview

Summary

Fundamentals are improving: TTM profitability rebounded to $32.4M net income with a solid net margin, and cash flow is strong with ~$39.8M free cash flow closely tracking earnings (~98%). Offsetting this, TTM revenue is slightly down (~4%), ROE is modest (~4.3%), and leverage remains meaningful (TTM debt-to-equity ~1.45x), reflecting a still-mixed recovery.

Income Statement

TTM (Trailing-Twelve-Months) profitability has improved versus the prior annual period, with net income recovering to $32.4M and margins turning solid again (about 9% net margin vs. a loss in 2024). However, growth is mixed: TTM revenue is slightly down (~4%), and results have been volatile over the last few years (strong profits in 2021–2023, a sharp loss in 2024, then a rebound). Overall, the earnings recovery is a clear strength, but the recent revenue softness and profit swings temper the score.

Balance Sheet

Leverage is meaningful for a regional bank and has trended higher versus earlier periods, with TTM debt-to-equity around 1.45x (improved from 2024/2025 annual levels, but above 2021). Returns are modest, with TTM return on equity around 4.3% (better than the loss year, but below 2021–2023 levels). The balance sheet looks stable in size, but the combination of middling returns and elevated leverage relative to the company’s own history keeps this in the mid-range.

Cash Flow

Cash generation is a relative bright spot: TTM operating cash flow is ~$40.7M and free cash flow is ~$39.8M, with free cash flow closely matching earnings (about 98% of net income), suggesting earnings quality is reasonably supported by cash. Free cash flow growth is very strong in TTM (off a lower base), though prior annual free cash flow growth was uneven, pointing to some volatility. Overall, the company is currently producing solid free cash flow, but the variability over time prevents a top-tier score.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	343.87M	343.53M	326.88M	296.48M	240.21M	256.06M
Gross Profit	163.89M	151.63M	134.38M	176.13M	218.06M	207.33M
EBITDA	43.32M	35.88M	-75.52M	58.67M	99.00M	91.34M
Net Income	32.37M	26.07M	-86.67M	40.81M	67.55M	63.23M
Balance Sheet
Total Assets	7.62B	7.74B	7.68B	8.06B	7.72B	7.28B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.18B	1.14B	1.30B	1.45B	1.74B
Total Debt	1.99B	1.26B	1.61B	1.51B	901.34M	685.88M
Total Liabilities	6.86B	6.99B	6.93B	7.20B	6.83B	6.24B
Stockholders Equity	757.40M	745.96M	753.57M	869.28M	894.00M	1.04B
Cash Flow
Free Cash Flow	39.77M	21.39M	42.62M	68.19M	78.38M	69.96M
Operating Cash Flow	40.70M	24.77M	43.97M	69.55M	81.30M	75.42M
Investing Cash Flow	114.37M	41.11M	258.12M	-417.92M	-479.95M	-83.97M
Financing Cash Flow	-151.20M	37.52M	-308.74M	317.27M	432.41M	-104.56M

Kearny Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRNY, the sentiment is Negative. The current price of 7.02 is below the 20-day moving average (MA) of 7.61, below the 50-day MA of 7.74, and above the 200-day MA of 6.74, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 28.00 is Positive, neither overbought nor oversold. The STOCH value of 9.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRNY.

Kearny Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRBI	80 Outperform	$570.04M	11.15	12.35%	0.73%	7.81%	26.91%
GCBC	76 Outperform	$370.33M	9.19	15.00%	1.63%	13.16%	37.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KRNY	65 Neutral	$454.47M	12.32	4.31%	5.80%	4.38%	―
BSRR	64 Neutral	$424.61M	8.40	11.07%	3.03%	-0.65%	14.14%
CARE	63 Neutral	$434.64M	12.67	7.65%	―	6.62%	117.46%
FFIC	53 Neutral	$497.41M	27.71	2.67%	5.16%	-11.91%	-235.73%

Kearny Financial Corporate Events

Kearny Financial Reports Stable Earnings, Declares Quarterly Dividend

Kearny Financial Corp., the holding company for Kearny Bank, reported second-quarter fiscal 2026 net income of $9.4 million, or $0.15 per diluted share, for the quarter ended December 31, 2025, essentially flat versus the prior quarter, as the bank continued to shift its loan mix toward commercial business and home equity lending while intentionally reducing multifamily exposure. The company highlighted a four-basis-point expansion in net interest margin to 2.14%, a 20.6% reduction in non-performing assets to $51.3 million, deposit growth of $79.7 million that helped reduce higher-cost wholesale borrowings, and a modest decline in total assets and loans receivable, underscoring a strategy focused on balance-sheet optimization and credit quality. Management reported progress on strategic initiatives, including a partnership with The Lab Consulting to drive automation and efficiency, and the recruitment of a five-person residential lending team to build the pipeline of loans held for sale and diversify fee income, moves aimed at strengthening long-term earnings and operational resilience. On January 22, 2026, the board also declared a quarterly cash dividend of $0.11 per share, payable on February 18, 2026 to shareholders of record as of February 4, 2026, signaling continued capital return to investors alongside ongoing investment in growth and process improvements.

The most recent analyst rating on (KRNY) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Kearny Financial stock, see the KRNY Stock Forecast page.