Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $6.64B
• Dividend Yield: 3.69%
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.89
• Revenue Growth: -1.94%
• EPS Growth: 41.35%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.28
• Shares Outstanding: 557,635,560
• 10 Day Avg. Volume: 6,667,922
• 30 Day Avg. Volume: 7,232,074
• PEG Ratio: -0.47
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 8.52
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 2.68
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 13.67
• 1Y Price Target: $14.86
• Price Target Upside: 24.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.97
• Revenue Forecast (FY): $2.01B

• Rating: 73 Outperform
• Price Target: $13.00 ▲(9.24% Upside)

Valley National Bancorp's overall stock score reflects a solid financial performance with strong profitability and effective cash flow management. The technical indicators suggest a positive trend, supported by a fair valuation. The recent earnings call provided confidence in the company's growth prospects, despite some challenges. The absence of significant corporate events outside the earnings call did not impact the score.

Positive Factors

Core Deposit Growth

Strong core deposit growth enhances liquidity and funding stability, supporting long-term lending capacity and interest income generation.

Net Interest Margin Expansion

Consistent net interest margin expansion indicates effective asset-liability management, boosting profitability and competitive positioning.

Noninterest Income Growth

Robust noninterest income growth diversifies revenue streams, reducing reliance on interest income and enhancing financial resilience.

Negative Factors

Revenue Decline

Declining revenue growth may signal challenges in market expansion or competitive pressures, potentially impacting long-term profitability.

Increase in Nonaccrual Loans

Rising nonaccrual loans can indicate credit quality issues, increasing risk and potentially leading to higher future credit costs.

Subdued Loan Growth

Subdued loan growth may limit future interest income potential, affecting the bank's ability to capitalize on market opportunities.

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 net interest income, which is earned from the interest on loans and investments minus the interest paid on deposits and borrowed funds. Key revenue streams include commercial loans, consumer loans, and mortgage loans, all of which contribute significantly to the bank's interest income. Additionally, the company earns non-interest income through fees from services such as asset management, investment advisory, and transaction fees. The bank also benefits from strategic partnerships with other financial institutions and service providers that enhance its product offerings and customer base, contributing to its overall profitability.

Valley National Bancorp Financial Statement Overview

Summary

Valley National Bancorp demonstrates strong profitability with healthy margins and a stable capital structure. Despite a decline in revenue growth, the company maintains effective cash flow management and a low debt-to-equity ratio, indicating prudent financial management.

Income Statement

Valley National Bancorp's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 5.48%, which is concerning. However, the company maintains a healthy gross profit margin of 47.65% and a net profit margin of 15.14%, indicating strong profitability. The EBIT and EBITDA margins are also solid at 17.94% and 20.11%, respectively, showcasing operational efficiency. Despite the revenue decline, the company has managed to sustain its profitability, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.44, which is relatively low and indicates prudent leverage management. The return on equity (ROE) stands at 6.65%, showing moderate profitability from shareholders' investments. The equity ratio is not explicitly calculated, but the company's equity position appears strong given the total assets. Overall, the balance sheet suggests a well-managed capital structure with a focus on maintaining financial stability.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 41.48% in the TTM period, which is a positive development. The operating cash flow to net income ratio is 0.88, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is 1.0, suggesting efficient cash conversion. However, the decline in operating cash flow from previous periods is a concern that needs monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.49B	3.57B	3.35B	2.18B	1.49B	1.57B
Gross Profit	1.73B	1.53B	1.83B	1.81B	1.33B	1.18B
EBITDA	683.87M	517.35M	761.54M	860.11M	691.70M	612.33M
Net Income	518.29M	380.27M	498.51M	568.85M	473.84M	390.61M
Balance Sheet
Total Assets	63.02B	62.49B	60.93B	57.46B	43.45B	40.69B
Cash, Cash Equivalents and Short-Term Investments	1.61B	2.12B	2.19B	2.21B	3.18B	2.67B
Total Debt	3.39B	3.69B	3.71B	2.10B	2.42B	3.78B
Total Liabilities	55.32B	55.06B	54.23B	51.06B	38.36B	36.09B
Stockholders Equity	7.70B	7.44B	6.70B	6.40B	5.08B	4.59B
Cash Flow
Free Cash Flow	539.39M	548.54M	378.19M	1.43B	837.14M	163.56M
Operating Cash Flow	539.39M	548.54M	378.19M	1.43B	837.14M	163.56M
Investing Cash Flow	-779.80M	-709.28M	-3.35B	-6.79B	-1.08B	-2.04B
Financing Cash Flow	570.95M	1.16B	2.91B	4.26B	964.35M	2.77B

Valley National Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLY, the sentiment is Positive. The current price of 11.9 is above the 20-day moving average (MA) of 11.35, above the 50-day MA of 10.89, and above the 200-day MA of 9.56, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 71.45 is Negative, neither overbought nor oversold. The STOCH value of 69.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLY.

Valley National Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PB	79 Outperform	$6.79B	12.77	7.09%	3.24%	0.55%	19.13%
HOMB	77 Outperform	$5.61B	12.42	11.20%	2.80%	1.43%	19.58%
FNB	75 Outperform	$6.26B	12.49	7.87%	2.75%	4.54%	27.56%
GBCI	74 Outperform	$5.76B	21.65	6.92%	2.98%	8.73%	26.19%
VLY	73 Outperform	$6.64B	13.57	7.07%	3.69%	-1.94%	41.35%
OZK	70 Outperform	$5.45B	7.76	12.35%	3.60%	2.79%	2.11%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Valley National Bancorp Corporate Events

Valley National Bancorp Reports Q3 2025 Income Surge

Valley National Bancorp reported a significant increase in net income for the third quarter of 2025, reaching $163.4 million, up from $133.2 million in the previous quarter and $97.9 million in the same period of 2024. The company’s net interest margin improved due to higher yields on new loans and increased average loans and taxable investments. Despite a decrease in total loans, primarily in commercial real estate and industrial loans, the bank saw an increase in deposits and maintained strong credit quality with reduced loan charge-offs. The efficiency ratio improved, reflecting better cost management, although non-interest expenses saw a slight increase due to higher professional and legal fees.