Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $421.06M
• Dividend Yield: 6.73%
• Average Volume (3M): 354.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 7.93%
• EPS Growth: -570.64%
• Country: US
• Employees: 552
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 64,579,680
• 10 Day Avg. Volume: 314,101
• 30 Day Avg. Volume: 354,628
• PEG Ratio: -0.33
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.70
• Enterprise Value/Market Cap: 4.50
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 6.45
• Enterprise Value/Ebitda: 26.20
• 1Y Price Target: $7.00
• Price Target Upside: 7.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: $7.00 ▲(7.36%Upside)

Kearny Financial's overall score is primarily impacted by its mixed financial performance and challenging valuation. While operational efficiency and cash management are positive, the negative earnings and lack of strong technical momentum weigh on the overall outlook. The solid dividend yield provides some support, but the risks associated with profitability and valuation are significant.

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 interest income generated from its lending activities. The company extends various types of loans, including residential mortgages, commercial real estate loans, and business loans, earning interest from borrowers. Additionally, Kearny Financial generates revenue from non-interest income sources, such as fees from deposit accounts, wealth management services, and other banking-related services. The company's profitability is influenced by interest rate trends, loan demand, and its ability to manage credit risk effectively. Partnerships with local businesses and community engagement also play a role in sustaining its revenue streams.

Kearny Financial Financial Statement Overview

Summary

Kearny Financial's financial performance is concerning, with declining revenues and profitability, despite a strong cash position and no debt. The negative income trends and inconsistent cash flow growth indicate potential financial risks.

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
EBITDA	18.82M	0.00	58.67M	99.00M	91.34M	63.06M
Net Income	-70.02M	-86.67M	40.81M	67.55M	63.23M	44.97M
Balance Sheet
Total Assets	7.73B	7.68B	8.06B	7.72B	7.28B	6.76B
Cash, Cash Equivalents and Short-Term Investments	1.04B	63.86M	1.30B	1.45B	1.74B	1.57B
Total Debt	1.26B	1.61B	1.51B	901.34M	685.88M	1.17B
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	22.75M	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	-83.84M	-308.74M	317.27M	432.41M	-104.56M	37.24M

Kearny Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 6.52 is below the 20-day moving average (MA) of 6.54, above the 50-day MA of 6.34, and below the 200-day MA of 6.69, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 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
FBIZ	79 Outperform	$443.39M	9.83	14.36%	2.18%	12.02%	26.09%
NRIM	78 Outperform	$524.04M	12.75	16.22%	2.70%	23.96%	47.39%
GCBC	77 Outperform	$429.25M	15.04	13.33%	1.40%	14.44%	16.49%
BSRR	77 Outperform	$428.11M	11.08	11.58%	3.23%	1.99%	17.65%
UNTY	74 Outperform	$525.93M	12.33	15.17%	1.07%	6.99%	12.46%
Sector *	64 Neutral	$6.61B	11.16	7.19%	5.25%	24.10%	5.12%
KRNY	59 Neutral	$421.06M	―	-8.86%	6.73%	7.93%	-570.64%

Kearny Financial Corporate Events

Kearny Financial Amends Executive Retirement Plan

On June 18, 2025, Kearny Bank and its President and CEO, Craig L. Montanaro, amended the Supplemental Executive Retirement Plan (SERP) to allow benefits to increase starting July 1, 2025. This change impacts the Executive, who is the sole participant in the SERP, potentially enhancing his retirement benefits and reflecting strategic adjustments in executive compensation.

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

Kearny Financial Reports Stable Q3 2025 Results

On April 24, 2025, Kearny Financial Corp. announced its third-quarter fiscal 2025 results, reporting a net income of $6.6 million, or $0.11 per diluted share, consistent with the previous quarter. The company also declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025. The quarter saw an expansion in net interest margin by eight basis points, attributed to growth in net loans and deposits, and a decrease in the cost of funds. Despite fluctuations in US Treasury rates, Kearny Financial remains confident in its core business performance. The company’s total assets increased slightly to $7.73 billion, with notable growth in loans receivable and deposits. However, non-interest income decreased due to lower gains on loan sales and electronic banking fees. Non-interest expenses rose due to increased salaries, benefits, and advertising costs. The company’s asset quality remained stable, with non-performing assets steady at $37.7 million.