Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $5.15B
• Dividend Yield: 4.79%
• Average Volume (3M): 9.83M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.07
• Revenue Growth: 1.48%
• EPS Growth: -18.84%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.18
• Shares Outstanding: 560,341,250
• 10 Day Avg. Volume: 11,447,018
• 30 Day Avg. Volume: 9,833,367
• PEG Ratio: 10.91
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.04
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 4.55
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $10.31
• Price Target Upside: 10.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $10.00 ▲(7.07%Upside)

Valley National Bancorp's overall stock score reflects a balance of stable financial performance and attractive valuation, tempered by mixed technical analysis signals. The company's strategic focus on cost control and capital efficiency adds to its strengths, although challenges in loan growth and market competition remain. The positive corporate event further supports investor confidence.

Positive Factors

Capital Levels

Capital levels received a significant boost, enhancing the company's financial stability.

Financial Performance

Significantly better profitability profile driven by continued NIM expansion and reduced credit costs.

Profitability

Greatly improved profitability expected, with ROA anticipated to reach 1%.

Negative Factors

Credit Trends

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

Valuation

Risks include lower bank stock valuations affecting the stock price target.

Valuation Multiple

Near-term elevated credit trends may negatively impact the near-term valuation multiple.

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 and non-interest income. Interest income is derived from loans offered to consumers and businesses, including commercial real estate loans, residential mortgages, and consumer loans. The bank earns interest by charging rates on these loans that are higher than the interest rates it pays on deposits. Non-interest income comes from fees and service charges associated with deposit accounts, credit cards, and other financial services. This includes transaction fees, late fees, and fees for specialized financial advisory and wealth management services. Additionally, Valley National Bancorp may engage in investment activities, generating income from securities and other financial instruments. The company's earnings are further supported by strategic partnerships and community-focused initiatives that enhance customer engagement and expand its market reach.

Valley National Bancorp Financial Statement Overview

Summary

Valley National Bancorp demonstrates stable profitability and operational efficiency with healthy margins. Despite a slight revenue decline and decreased free cash flow, the company maintains a balanced leverage position, reflecting overall financial stability.

Income Statement

Valley National Bancorp shows a modest gross profit margin of 43.7% and a net profit margin of 11.1% in the TTM period, indicating stable profitability. The revenue growth rate from the previous year to TTM is slightly negative at -1.2%, reflecting a slight downturn. However, EBIT and EBITDA margins remain healthy at 12.7% and 14.9% respectively, showcasing solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.46, indicating a balanced leverage position. With an equity ratio of 12.1%, Valley National Bancorp maintains a stable financial base. However, the return on equity is relatively low at 5.2%, suggesting room for improvement in shareholder profitability.

Cash Flow

Free cash flow has decreased by 23.2% in the TTM period compared to the previous year, indicating a decline in cash generation ability. The operating cash flow to net income ratio is 1.09, showing that operating cash flow exceeds net income, a positive signal for cash management. Nevertheless, the free cash flow to net income ratio is slightly above 1.08, reflecting a moderate cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53B	3.57B	3.35B	2.18B	1.49B	1.57B
Gross Profit	1.54B	1.53B	1.83B	1.81B	1.33B	1.18B
EBITDA	524.73M	517.35M	761.54M	860.11M	691.70M	612.33M
Net Income	390.05M	380.27M	498.51M	568.85M	473.84M	390.61M
Balance Sheet
Total Assets	61.87B	62.49B	60.93B	57.46B	43.45B	40.69B
Cash, Cash Equivalents and Short-Term Investments	1.58B	2.12B	2.19B	2.22B	3.22B	2.67B
Total Debt	3.42B	3.69B	3.71B	2.10B	2.42B	3.78B
Total Liabilities	54.37B	55.06B	54.23B	51.06B	38.36B	36.09B
Stockholders Equity	7.50B	7.44B	6.70B	6.40B	5.08B	4.59B
Cash Flow
Free Cash Flow	421.26M	548.54M	378.19M	1.36B	-225.80M	163.56M
Operating Cash Flow	426.44M	535.53M	378.19M	1.43B	837.14M	163.56M
Investing Cash Flow	-968.68M	-709.28M	-3.35B	-6.79B	-1.08B	-2.04B
Financing Cash Flow	827.54M	1.16B	2.91B	4.26B	964.35M	2.77B

Valley National Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.34 is above the 20-day moving average (MA) of 8.81, above the 50-day MA of 8.75, and above the 200-day MA of 9.04, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.81 is Negative, 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	76 Outperform	$5.55B	8.02	12.85%	3.51%	13.85%	2.43%
COLB	73 Outperform	$5.14B	10.33	9.73%	6.16%	-0.17%	1.69%
GBCI	73 Outperform	$5.16B	24.32	6.63%	3.06%	8.10%	6.95%
VLY	71 Outperform	$5.15B	13.39	5.48%	4.79%	1.48%	-18.84%
UBSI	70 Outperform	$5.34B	13.93	7.30%	4.06%	6.59%	2.88%
FFIN	69 Neutral	$5.33B	23.06	14.60%	2.11%	16.01%	15.70%
Sector *	58 Neutral	$12.52B	5.23	-2.71%	5.27%	5.88%	-56.03%

Valley National Bancorp Corporate Events

Valley National Bancorp Shareholders Meeting Highlights

Valley National Bancorp announced the retirement of its President, Thomas A. Iadanza, effective June 30, 2025. CEO Ira Robbins will take on the additional role of President. During the Annual Meeting of Shareholders on May 20, 2025, shareholders elected 11 directors, approved executive compensation, and ratified KPMG LLP as the accounting firm for 2025.

The most recent analyst rating on (VLY) stock is a Buy 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.

Valley National Bancorp Announces Note Redemption Plan

On May 16, 2025, Valley National Bancorp announced the full redemption of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030, originally issued in 2020 with an aggregate principal amount of $115 million. The redemption will occur on June 15, 2025, at a price of 100% of the principal amount plus accrued interest, ceasing interest accrual thereafter. CEO Ira Robbins highlighted that the redemption reflects the company’s strengthened balance sheet and financial flexibility, allowing it to optimize capital efficiency while supporting strategic initiatives.

The most recent analyst rating on (VLY) stock is a Buy 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.

Valley National Bancorp Reports Q1 2025 Financial Results

Valley National Bancorp reported its first quarter 2025 financial results, showing a net income of $106.1 million, a decrease from the previous quarter but an increase from the same quarter last year. The company highlighted improvements in its funding base and credit quality, with growth in core deposits and a reduction in non-accrual loans. Despite a decrease in total loans, there was growth in commercial and industrial and automobile loans. The company also reported a decrease in non-interest expenses and an increase in non-interest income, contributing to a favorable efficiency ratio.