Valley National Bancorp (VLY) AI Stock Analysis

• Market Cap: $5.83B
• Dividend Yield: 4.19%
• Average Volume (3M): 7.87M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.03
• Revenue Growth: 0.20%
• EPS Growth: 9.86%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 559,721,000
• 10 Day Avg. Volume: 7,471,435
• 30 Day Avg. Volume: 7,869,699
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 16.10
• 1Y Price Target: $10.89
• Price Target Upside: 2.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $11.00 ▲(3.29% Upside)

Valley National Bancorp's strong earnings call performance and positive technical indicators are the most significant factors contributing to the score. The company's stable financial performance and reasonable valuation also support the overall positive outlook. However, caution is warranted due to adjustments in loan growth guidance and cash flow challenges.

Positive Factors

Profitability

Valley's performance and management outlook have increased conviction that the company can approach its profitability target in the coming years.

Valuation

Profitability does not need to reach its full target to justify a significant valuation increase.

Negative Factors

Valuation Risks

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 (VLY) is a financial holding company based in Wayne, New Jersey, primarily engaged in providing a wide range of banking and financial services through its subsidiary, Valley National Bank. The company operates across various sectors, including commercial banking, retail banking, and wealth management. Core products and services encompass personal and business loans, deposits, mortgages, treasury management, and investment services, catering to both individual and corporate clients across its regions of operation.

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 stable profitability and operational efficiency with healthy margins. Despite a slight revenue decline, the company maintains a balanced leverage position. Cash flow generation faces some headwinds, but overall, the company remains financially stable.

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	2.21B	3.18B	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	431.91M	548.54M	378.19M	1.43B	837.14M	163.56M
Operating Cash Flow	431.91M	548.54M	378.19M	1.43B	837.14M	163.56M
Investing Cash Flow	-976.58M	-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: 10.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 10.65 is above the 20-day moving average (MA) of 10.02, above the 50-day MA of 9.64, and above the 200-day MA of 9.22, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 90.43 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	80 Outperform	$5.94B	8.49	12.68%	3.21%	7.12%	2.47%
COLB	79 Outperform	$8.01B	10.56	10.24%	5.38%	-1.39%	11.31%
GBCI	74 Outperform	$5.78B	25.31	6.60%	2.65%	8.37%	17.00%
VLY	72 Outperform	$5.83B	13.33	6.33%	4.19%	0.20%	9.86%
UBSI	71 Outperform	$5.38B	13.43	7.71%	3.83%	7.80%	6.87%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
FFIN	65 Neutral	$5.33B	21.36	15.09%	1.96%	14.53%	21.78%

Valley National Bancorp Corporate Events

Valley National Bancorp Reports Strong Q2 2025 Results

Valley National Bancorp announced its second quarter 2025 financial results, reporting a net income of $133.2 million, an increase from both the previous quarter and the same quarter last year. The company experienced growth in net interest income and margin, driven by higher yields on new loans and increased average loan balances. The loan portfolio saw a significant increase in commercial and industrial loans, while deposits also rose, supported by an increase in customer time deposits. The company redeemed $115 million in subordinated notes, resulting in a pre-tax loss, and saw improvements in credit quality with a reduction in loan loss provisions. These results reflect the company’s strategic focus on balance sheet strength and profitability, positioning it well for future growth.

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.