Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $4.98B
• Dividend Yield: 4.95%
• Average Volume (3M): 7.97M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.43
• Revenue Growth: 6.09%
• EPS Growth: -26.94%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 560,275,760
• 10 Day Avg. Volume: 7,920,458
• 30 Day Avg. Volume: 7,973,475
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.78
• Price to Cash Flow (P/CF): 3.20
• P/FCF Ratio: 1.50
• 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: $11.07
• Price Target Upside: 22.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Valley National Bancorp's stock score reflects a mix of strengths and challenges. The company shows reasonable financial performance with improved leverage but faces declining profitability and liquidity concerns. Technical indicators suggest cautious trading sentiment, while the valuation remains fair with a strong dividend yield. Recent earnings calls and corporate events indicate positive strategic progress, though risks remain with loan provisions and market conditions.

Positive Factors

Capital and Growth

VLY is currently trading below TBV, and there is expected upside if the bank achieves its ROA target.

Financial Metrics

The substantial discount and improved financial metrics present an opportunity, leading to an upgrade of VLY shares to Overweight.

Profitability

The catalyst is greatly improved profitability over the next 12 months expected to reach a 1% ROA.

Negative Factors

Credit and Expenses

A continued uptick in credit and elevated LLP expense likely weighs on the overall share price reaction.

Credit Trends

Near-term credit trends continue to be elevated, which likely weighs on the near-term valuation multiple.

Valuation

Risks to the stock reaching the price target include lower bank stock valuations.

Valley National Bancorp Business Overview & Revenue Model

Company Description

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products. It operates through Commercial Lending, Consumer Lending, and Investment Management segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts, commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, foreign wire transfers services, and transaction accounts for non-resident aliens. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts and custom -tailored investment strategies for various retirement plans. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; and overdraft, drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. As of December 31,2021, it operated 232 branch offices in New Jersey, New York, Florida, and Alabama. The company was incorporated in 1927 and is headquartered in New York, New York.

How the Company Makes Money

Valley National Bancorp generates revenue primarily through interest income from its loan portfolio, which includes commercial real estate loans, residential mortgages, and consumer loans. Additionally, the bank earns money from non-interest income sources such as service charges on deposit accounts, fees from loan servicing, and income from its wealth management and insurance services. The company also benefits from strategic partnerships and acquisitions that enhance its product offerings and geographic reach, contributing to its overall earnings.

Valley National Bancorp Financial Statement Overview

Summary

Valley National Bancorp demonstrates a mixed financial performance. While revenue growth has been inconsistent and profitability metrics have declined, the balance sheet shows improved financial leverage. However, challenges remain with declining ROE and potential liquidity issues, suggesting a need for improved cash management.

Income Statement

Valley National Bancorp's revenue growth has been modest with a significant increase from 2021 to 2022, but a slight decline in 2023 and 2024. The gross profit margin remains strong as it equals total revenue, indicating cost efficiency. However, the net profit margin has decreased from 2023 to 2024, indicating potential profitability challenges. The absence of EBIT and EBITDA margins in 2024 provides limited insight into operational profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from 2023 to 2024, reflecting reduced leverage and potentially lower financial risk. Return on equity has decreased, suggesting lower profitability relative to shareholder equity. The equity ratio indicates a stable financial structure with adequate equity backing, but the declining ROE is a concern.

Cash Flow

Operating cash flow in 2024 has decreased compared to previous years, signaling reduced cash-generating ability. The free cash flow has declined as well, impacting financial flexibility. The operating cash flow to net income ratio suggests a decrease in cash efficiency relative to net income. Overall, the cash flow position highlights potential liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.84B	1.82B	1.86B	1.37B	1.30B
	Gross Profit
1.85B	1.82B	1.86B	1.37B	1.30B
	EBIT
-1.62B	689.20M	1.10B	640.74M	530.07M
	EBITDA
0.00	0.00	728.87M	685.20M	612.33M
	Net Income Common Stockholders
380.27M	498.51M	568.85M	473.84M	390.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.78B	891.23M	2.21B	3.18B	2.67B
	Total Assets
62.49B	60.93B	57.46B	43.45B	40.69B
	Total Debt
461.02M	3.71B	2.10B	2.42B	3.78B
	Net Debt
49.61M	2.82B	1.15B	369.00M	2.45B
	Total Liabilities
55.06B	54.23B	51.06B	38.36B	36.09B
	Stockholders Equity
7.44B	6.70B	6.40B	5.08B	4.59B
Cash Flow		Free Cash Flow
305.67M	378.19M	1.36B	-225.80M	126.92M
	Operating Cash Flow
305.67M	378.19M	1.43B	837.14M	151.53M
	Investing Cash Flow
-559.20M	-3.35B	-6.79B	-1.08B	-2.04B
	Financing Cash Flow
337.35M	2.91B	4.26B	964.35M	2.78B

Valley National Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLY, the sentiment is Negative. The current price of 9.06 is above the 20-day moving average (MA) of 8.84, below the 50-day MA of 9.44, and above the 200-day MA of 8.75, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 33.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLY.

Valley National Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWC	75 Outperform	$4.52B	9.93	11.54%	3.18%	7.67%	17.51%
ONB	69 Neutral	$6.70B	12.50	9.06%	2.66%	16.39%	-13.25%
VLY	65 Neutral	$4.98B	12.83	5.38%	4.95%	6.09%	-26.94%
Sector *	63 Neutral	$14.35B	9.94	8.94%	4.37%	16.34%	-11.76%
FULT	62 Neutral	$3.30B	11.51	9.69%	3.87%	21.10%	-4.20%
TMP	61 Neutral	$909.08M	12.68	10.25%	3.91%	41.65%	668.73%
UBSI	61 Neutral	$4.97B	12.60	7.62%	4.30%	6.80%	1.48%

Valley National Bancorp Corporate Events

Valley National Bancorp Appoints Eyal Efrat as Director

On March 12, 2025, Valley National Bancorp appointed Eyal Efrat as a director to serve until the next annual meeting of shareholders. Mr. Efrat, an independent director, will join the Risk Committee and Cyber and Technology Sub-Committee. He brings over 25 years of experience in the Israeli financial sector, having held significant roles at Bank Leumi and Harel Insurance Investments and Financial Services Ltd. This appointment follows the resignation of Avner Mendelson, the previous designee of Bank Leumi, under the Investor Rights Agreement.

Valley National Bancorp Announces Leadership Changes

On March 3, 2025, Valley National Bancorp announced significant leadership changes, including the departure of Joseph V. Chillura as President of Commercial Banking, effective June 30, 2025, and the appointment of Gino Martocci as his successor, effective March 31, 2025. Martocci brings over 30 years of experience and will oversee Valley’s commercial banking operations, aiming to expand its market presence. Additionally, Travis Lan was promoted to Senior Executive Vice President, Chief Financial Officer, effective immediately, recognizing his contributions to the bank’s strategic growth since joining in 2020. These appointments are part of Valley’s strategy to strengthen its leadership team and execute strategic priorities.

Valley National Bancorp Board Member Resignation

On January 24, 2025, Avner Mendelson resigned from his position as a non-employee director on the board of directors of Valley National Bancorp. His resignation was not due to any disagreements with the company or its management. Bank Leumi, which initially appointed Mendelson as its designee, plans to nominate a new representative to the board.

Valley National Bancorp Reports Fourth Quarter Growth

Valley National Bancorp reported a net income of $115.7 million for the fourth quarter of 2024, showing an increase from the previous quarters. The company has made significant progress in improving its balance sheet, which includes reduced CRE loan concentration and increased loan diversity, aiming to boost profitability in 2025. Key financial changes included a 6 basis point increase in net interest margin, a decrease in total loans due to repayment and sales, and a rise in non-interest expenses driven by transformation efforts. Additionally, they saw a notable change in tax positions, resulting in a tax benefit for the fourth quarter.