Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $6.12B
• Dividend Yield: 4.34%
• Average Volume (3M): 13.53M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.94
• 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: 559,721,000
• 10 Day Avg. Volume: 11,625,477
• 30 Day Avg. Volume: 13,529,707
• 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: 1.53
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 5.91
• Enterprise Value/Ebitda: 14.00
• 1Y Price Target: $13.73
• Price Target Upside: 24.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.97
• Revenue Forecast (FY): $2.01B

• Rating: 71 Outperform
• Price Target: $12.00 ▲(8.60% Upside)

Valley National Bancorp's overall stock score is driven by strong financial performance and positive technical indicators. The earnings call provided additional confidence with robust income growth and effective deposit management. Valuation metrics are reasonable, offering a solid investment case despite some market challenges.

Positive Factors

Strong Core Deposit Growth

The 10% growth in core deposits enhances liquidity and funding stability, supporting long-term lending capacity and financial health.

Partnership with Infinant

The partnership with Infinant enhances Valley's fintech capabilities, expanding its market reach and offering innovative solutions to fintech partners.

Noninterest Income Growth

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

Negative Factors

Increase in Nonaccrual Loans

Rising nonaccrual loans can strain credit quality and increase risk, potentially impacting future profitability and financial stability.

Competitive Deposit and Loan Markets

Competitive pressures in deposit and loan markets may compress margins, challenging revenue growth and profitability over the long term.

Subdued Loan Growth

Subdued loan growth limits revenue potential from interest income, affecting the bank's ability to expand its lending portfolio and market share.

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 loans and interest-earning assets, such as securities. The bank offers various loan products, including commercial and industrial loans, residential mortgages, and consumer loans, which typically yield higher interest rates compared to the interest paid on deposits. Additionally, the company earns non-interest income through service fees, transaction fees, and commissions from its investment and wealth management divisions. Significant partnerships and relationships with other financial institutions and businesses enhance its ability to cross-sell services, expand its customer base, and improve overall revenue generation. Furthermore, Valley National Bancorp may benefit from favorable economic conditions, effective management of interest rate risk, and strategic acquisitions that can contribute to its earnings growth.

Valley National Bancorp Financial Statement Overview

Summary

Valley National Bancorp demonstrates a stable financial position with strong profitability margins and a solid balance sheet. However, the decline in revenue growth and free cash flow growth presents challenges that need to be addressed. The company shows resilience in maintaining profitability and managing leverage effectively, but future growth strategies should focus on reversing the negative revenue and cash flow trends.

Income Statement

Valley National Bancorp's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 48.5%, reflecting potential challenges in maintaining revenue streams. However, the company maintains a healthy gross profit margin of 46.4% and a net profit margin of 12.9%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also solid at 15.0% and 17.2%, respectively, suggesting operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity (ROE) stands at 6.1%, which is reasonable but shows room for improvement. The equity ratio is strong, reflecting a solid capital base and financial stability. Overall, the balance sheet suggests a well-managed capital structure with manageable debt levels.

Cash Flow

The cash flow statement highlights some concerns, with a negative free cash flow growth rate of 12.7% in the TTM period, indicating potential cash flow challenges. However, the operating cash flow to net income ratio is 0.68, suggesting that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is 1.0, indicating that all net income is converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.32B	3.57B	3.35B	2.18B	1.49B	1.57B
Gross Profit	1.58B	1.53B	1.83B	1.81B	1.33B	1.18B
EBITDA	667.51M	517.35M	761.54M	860.11M	691.70M	612.33M
Net Income	502.40M	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	4.49B	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	533.47M	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	-11.42M	1.16B	2.91B	4.26B	964.35M	2.77B

Valley National Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.05
• 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 VLY, the sentiment is Positive. The current price of 11.05 is above the 20-day moving average (MA) of 10.65, above the 50-day MA of 10.65, and above the 200-day MA of 9.42, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 38.20 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
OZK	73 Outperform	$5.04B	7.16	12.35%	3.92%	2.79%	2.11%
FNB	72 Outperform	$5.70B	11.34	7.87%	2.99%	4.54%	27.56%
HOMB	72 Outperform	$5.33B	11.73	11.20%	2.90%	1.43%	19.58%
PB	71 Outperform	$6.29B	11.82	7.09%	3.67%	0.55%	19.13%
VLY	71 Outperform	$6.12B	12.45	7.07%	4.34%	-1.94%	41.35%
GBCI	69 Neutral	$5.45B	20.47	6.92%	3.10%	8.73%	26.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Valley National Bancorp Corporate Events

Valley National’s Earnings Call Highlights Strong Growth Amid Challenges

Valley National Bancorp’s recent earnings call painted a picture of robust financial health, marked by strong net income growth and core deposit expansion. Despite these positive indicators, the company faces challenges such as increased nonaccrual loans and competitive pressures in the deposit and loan markets, alongside subdued loan growth.

Valley National Bancorp Reports Strong Q3 2025 Earnings

Valley National Bancorp, a regional bank holding company, operates Valley National Bank, providing a wide range of financial services across several states in the U.S., including New Jersey, New York, and Florida. In its third-quarter 2025 earnings report, Valley National Bancorp announced a significant increase in net income, reaching $163.4 million, or $0.28 per diluted share, compared to $133.2 million in the previous quarter. The company highlighted improvements in profitability and strategic positioning, driven by new leadership and a robust suite of financial products. Key financial metrics showed a rise in net interest income to $447.5 million and an increase in the net interest margin to 3.05%. Deposit balances grew by $450.5 million, while the loan portfolio experienced a slight decrease, primarily in commercial real estate and industrial loans. Credit quality showed improvement with a reduction in net loan charge-offs and accruing past due loans. Looking ahead, Valley National Bancorp remains optimistic about leveraging its unique market position to capitalize on future opportunities, supported by a strong financial foundation and strategic initiatives.

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.

The most recent analyst rating on (VLY) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Valley National Bancorp stock, see the VLY Stock Forecast page.