Kearny Financial (KRNY) AI Stock Analysis

• Market Cap: $523.09M
• Dividend Yield: 5.8%
• Average Volume (3M): 306.40K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.83
• 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: 2.78
• Enterprise Value/Revenue: 4.23
• Enterprise Value/Gross Profit: 8.87
• Enterprise Value/Ebitda: 33.57
• 1Y Price Target: $8.75
• Price Target Upside: 7.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $9.00 ▲(10.70% Upside)

The score is primarily driven by mixed financial performance (good revenue growth but elevated leverage and weakening free cash flow growth). Technicals are supportive due to the strong moving-average uptrend, but overbought readings add near-term risk. Valuation is helped by a high dividend yield, partially offset by a mid-range P/E.

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

Mixed fundamentals: strong TTM revenue growth (13.9%), but profitability is modest (net margin 11.02%) and leverage is elevated (debt-to-equity 1.60). Cash flow is also mixed with declining free cash flow growth (-21.5%) despite solid FCF-to-net-income (91.46%).

Income Statement

Kearny Financial shows a mixed performance in its income statement. The TTM data indicates a healthy revenue growth rate of 13.9%, which is a positive sign. However, the gross profit margin has decreased slightly from previous periods, and the net profit margin is relatively low at 11.02%. The EBIT and EBITDA margins have improved compared to the previous year, indicating better operational efficiency. Overall, while revenue growth is strong, profitability margins suggest room for improvement.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.60, which indicates significant leverage and potential financial risk. Return on equity is modest at 3.94%, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage could imply a lower equity ratio. While the company has managed to reduce its debt slightly over the past year, the overall leverage remains a concern.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is down by 21.5% in the TTM period. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 91.46%, suggesting that the company is still generating cash relative to its net income. Despite some strengths, the declining free cash flow growth is a concern.

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

Kearny Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 8.13 is above the 20-day moving average (MA) of 7.76, above the 50-day MA of 7.51, and above the 200-day MA of 6.48, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 67.37 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	$610.46M	14.16	12.03%	0.73%	7.81%	26.91%
CARE	72 Outperform	$487.90M	15.90	7.71%	―	6.62%	117.46%
GCBC	69 Neutral	$414.77M	11.35	14.53%	1.63%	13.16%	37.40%
BSRR	69 Neutral	$511.12M	12.19	11.07%	3.03%	-0.65%	14.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KRNY	64 Neutral	$523.09M	15.70	3.92%	5.80%	4.38%	―
FFIC	54 Neutral	$570.52M	31.28	-5.05%	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.

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.