Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $503.02M
• Dividend Yield: 5.8%
• Average Volume (3M): 306.40K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.79
• 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: 3.19
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: 10.13
• Enterprise Value/Ebitda: 39.52
• 1Y Price Target: $9.00
• Price Target Upside: 15.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $8.00 ▲(2.96% Upside)

Kearny Financial's overall score is driven by strong technical indicators and positive corporate events. While financial performance shows areas for improvement, the company's strategic initiatives and attractive dividend yield support a favorable outlook.

Positive Factors

Revenue Growth

The company reported a healthy revenue growth rate of 13.9%, indicating expanding market reach and effective business strategies.

Strategic Initiatives

Process automation and branch consolidations are expected to enhance operational efficiency and profitability over time.

Offensive Growth Strategy

Transitioning to an offensive growth strategy positions the company for future expansion and improved market competitiveness.

Negative Factors

High Leverage

Significant leverage poses financial risk and may limit the company's ability to invest in growth opportunities.

Profitability Margins

Low profitability margins suggest challenges in cost management and pricing power, affecting long-term earnings potential.

Cash Flow Challenges

Decreasing free cash flow growth indicates potential difficulties in sustaining operations and funding future investments.

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 generates revenue primarily through interest income from loans and interest earned on securities. The bank originates loans, including residential mortgages, commercial real estate loans, and consumer loans, which are then held in its portfolio or sold in the secondary market. Additionally, Kearny Financial earns non-interest income from service fees on deposit accounts, transaction fees, and other banking services. The company's revenue is also bolstered by its investment portfolio, which includes government and corporate bonds that provide interest income. Key partnerships with local businesses and community organizations enhance its customer base and contribute to its earnings through increased loan origination and deposit growth.

Kearny Financial Financial Statement Overview

Summary

Kearny Financial shows mixed financial performance with improvements in profitability and cash flow generation. However, challenges include high leverage and declining revenue. The balance sheet stability is offset by risks associated with significant debt levels.

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	344.00M	343.53M	326.88M	296.48M	240.21M	256.06M
Gross Profit	158.30M	151.63M	134.38M	176.13M	218.06M	207.33M
EBITDA	40.60M	35.88M	-75.52M	58.67M	99.00M	91.34M
Net Income	29.49M	26.07M	-86.67M	40.81M	67.55M	63.23M
Balance Sheet
Total Assets	7.65B	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	1.21B	1.26B	1.61B	1.51B	901.34M	685.88M
Total Liabilities	6.89B	6.99B	6.93B	7.20B	6.83B	6.24B
Stockholders Equity	753.20M	745.96M	753.57M	869.28M	894.00M	1.04B
Cash Flow
Free Cash Flow	21.34M	21.39M	42.62M	68.19M	78.38M	69.96M
Operating Cash Flow	23.74M	24.77M	43.97M	69.55M	81.30M	75.42M
Investing Cash Flow	89.65M	41.11M	258.12M	-417.92M	-479.95M	-83.97M
Financing Cash Flow	-138.82M	37.52M	-308.74M	317.27M	432.41M	-104.56M

Kearny Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.77
• 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 7.77 is above the 20-day moving average (MA) of 7.63, above the 50-day MA of 7.15, and above the 200-day MA of 6.40, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.64 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	78 Outperform	$493.23M	12.12	12.03%	0.73%	7.81%	26.91%
CARE	75 Outperform	$447.04M	14.94	7.71%	―	6.62%	117.46%
GCBC	75 Outperform	$385.32M	11.42	14.53%	1.63%	13.16%	37.40%
BSRR	72 Outperform	$462.85M	11.93	11.07%	3.03%	-0.65%	14.14%
KRNY	71 Outperform	$503.02M	16.54	3.92%	5.80%	4.38%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FFIC	54 Neutral	$511.41M	-12.75	-5.05%	5.16%	-11.91%	-235.73%

Kearny Financial Corporate Events

Kearny Financial Announces Strong Q1 2026 Results

On October 23, 2025, Kearny Financial Corp. announced its first quarter fiscal 2026 results, reporting a net income of $9.5 million, a significant increase from the previous quarter. The company declared a quarterly cash dividend of $0.11 per share, payable on November 19, 2025. The quarter saw a 36% increase in earnings per share, driven by a 10 basis point expansion in net interest margin and solid credit quality. The company also highlighted strategic initiatives, including a partnership with The Lab Consulting for process automation and branch consolidations to optimize its real estate footprint. Despite a decrease in total assets and loans receivable, Kearny Financial maintained strong asset quality and capital reserves, positioning itself for sustained performance.

The most recent analyst rating on (KRNY) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Kearny Financial stock, see the KRNY Stock Forecast page.

Kearny Financial Shifts to Offensive Growth Strategy

On October 21, 2025, Kearny Financial Corp. held its fiscal 2025 Annual Meeting of Stockholders, where they reviewed fiscal year highlights and strategic outlook. The company successfully navigated industry pressures, transitioning from a defensive to an offensive growth strategy as macroeconomic conditions improved. Strategic investments in technology and a focus on small to medium business markets have enhanced operational efficiency and client growth. The company also maintained strong credit performance, with minimal charge-offs, and plans to continue strategic growth initiatives in fiscal year 2026.

The most recent analyst rating on (KRNY) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Kearny Financial stock, see the KRNY Stock Forecast page.