Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $404.27M
• Dividend Yield: 7.03%
• Average Volume (3M): 318.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• 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: 363,927
• 30 Day Avg. Volume: 318,920
• 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: $8.13
• Price Target Upside: 28.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Kearny Financial faces significant challenges with declining revenue and profitability, despite a strong cash position and no debt. Bearish technical indicators suggest near-term pressure, while the high dividend yield offers some appeal to income-focused investors. Recent positive corporate events could support future earnings, but overall financial risks remain.

Kearny Financial Business Overview & Revenue Model

Company Description

Kearny Financial Corp. (KRNY) is a publicly traded financial services company that operates primarily through its subsidiary, Kearny Bank. Based in the United States, the company provides a range of financial products and services, including personal and business banking, mortgage lending, and investment services. Kearny Bank is committed to serving the financial needs of individuals, families, and businesses in its communities, offering customer-focused solutions to help them achieve their financial goals.

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 financial performance shows significant challenges with declining revenues and profitability, despite a strong cash position and no debt. The negative income trends and inconsistent cash flow growth indicate potential risks that need to be addressed for improved 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	140.60M	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
106.69M	63.86M	1.30B	1.45B	1.74B	1.57B
	Total Assets
2.25B	7.68B	8.06B	7.72B	7.28B	6.76B
	Total Debt
210.00M	1.61B	1.51B	901.34M	685.88M	1.17B
	Net Debt
103.31M	1.55B	1.44B	799.72M	618.02M	992.20M
	Total Liabilities
1.77B	6.93B	1.51B	6.83B	685.88M	5.67B
	Stockholders Equity
482.00M	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: Negative
• Last Price: 6.35
• 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 Negative. The current price of 6.35 is below the 20-day moving average (MA) of 6.38, below the 50-day MA of 6.75, and below the 200-day MA of 6.76, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.25 is Neutral, 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
FBIZ	75 Outperform	$391.40M	9.07	13.98%	2.21%	15.98%	19.35%
GCBC	74 Outperform	$410.52M	15.58	12.73%	1.45%	15.35%	-1.43%
UNTY	74 Outperform	$409.34M	10.02	14.88%	1.28%	8.29%	6.28%
BSRR	66 Neutral	$389.32M	9.90	11.67%	3.46%	5.69%	19.91%
Sector *	63 Neutral	$14.35B	9.94	8.94%	4.37%	16.34%	-11.76%
NRIM	55 Neutral	$404.24M	11.06	14.73%	3.36%	22.97%	47.91%
KRNY	50 Neutral	$404.27M	―	-8.79%	7.03%	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.

Kearny Financial Faces Board Restructuring in 2025

On January 14, 2025, Kearny Financial Corp. faced significant changes in its Board of Directors with the passing of director John F. Regan. Following this, on January 15, 2025, John N. Hopkins announced his retirement and resignation from the Board, effective February 1, 2025. These events prompted the company and Kearny Bank to decide to reduce their Boards from 14 to 12 members to address the resulting vacancies.