Zions Bancorporation National Association (ZION) AI Stock Analysis

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Zions Bancorporation National Association

(NASDAQ:ZION)

69Neutral

Zions Bancorporation's strong financial performance, highlighted by revenue and profit growth, is offset by technical indicators pointing to bearish momentum. Valuation metrics suggest the stock is undervalued, offering potential upside. The earnings call was mixed, showing positive earnings growth but also highlighting economic uncertainties and increased expenses.

Positive Factors

Financial Performance

Zions Bancorporation reported a significant increase in first-quarter net interest income, driven by decreasing funding costs.

Growth and Expansion

Zions expects to continue building out small businesses, mid-sized companies, and wealth, indicating a focus on growth and expansion.

Stock Rating

The analyst is raising the rating on Zions Bancorporation to BUY due to the stock being undervalued compared to its peers.

Negative Factors

Loan Growth Outlook

The forward guide was lowered marginally given a more cautious outlook on loan growth and more rate cuts in the forward curve.

Macroeconomic Concerns

Management tone on the macro environment was also decidedly more negative given tariff related uncertainty, with weaker sentiment among clients.

Regulatory Capital Impact

Capital is impacted by AOCI being considered part of regulatory capital, which is estimated to be negative given 5yr UST changes.

Zions Bancorporation National Association (ZION) vs. S&P 500 (SPY)

Market Cap

$6.69B

Dividend Yield3.7%

Average Volume (3M)2.39M

Price to Earnings (P/E)8.8

Beta (1Y)1.56

Revenue Growth4.84%

EPS Growth29.25%

CountryUS

Employees9,392

SectorFinancial

Sector Strength85

IndustryBanks - Regional

Share Statistics

EPS (TTM)5.13

Shares Outstanding147,563,310

10 Day Avg. Volume1,929,196

30 Day Avg. Volume2,387,582

Financial Highlights & Ratios

PEG Ratio0.30

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.65

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit3.52

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$54.69

Price Target Upside17.34% Upside

Rating ConsensusHold

Number of Analyst Covering14

Zions Bancorporation National Association Business Overview & Revenue Model

Company DescriptionZions Bancorporation National Association (ZION) is a leading financial services institution in the United States. The company operates through a network of regional banks under various brand names, providing a comprehensive range of banking and financial solutions. Zions offers personal and commercial banking, mortgage lending, wealth management, and investment services. With a focus on fostering relationships with local communities and businesses, it caters to individuals, small- to mid-sized enterprises, and large corporations across multiple sectors.

How the Company Makes MoneyZions Bancorporation generates revenue primarily through interest income and non-interest income sources. Interest income is derived from the loans and credit products it offers to individuals and businesses. This includes personal loans, commercial loans, mortgages, and lines of credit. Non-interest income comes from fees and service charges associated with deposit accounts, transaction processing, and wealth management services. Additionally, investment banking and advisory fees contribute to its earnings. Zions also benefits from strategic partnerships with financial technology firms and other financial institutions, which enhance its service offerings and customer reach. The company's performance is influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes.

Zions Bancorporation National Association Financial Statement Overview

Summary

Zions Bancorporation shows strong revenue growth and profitability, with improved net profit and EBIT margins. The balance sheet is healthy with manageable debt, and cash flow is robust despite some fluctuations. Overall, the financial performance is positive, supported by efficient cash management and operational efficiency.

Income Statement

Very Positive

Zions Bancorporation has shown solid revenue growth, with a significant increase from $2.705 billion in 2023 to $4.293 billion in 2024. The net profit margin improved to 18.26% in 2024, up from 25.14% in 2023, indicating strong profitability. The EBIT margin was exceptionally high at 98.95%, reflecting efficient cost management. However, the EBITDA margin decreased slightly, highlighting potential operational challenges.

Balance Sheet

Positive

The company's balance sheet shows a moderate debt-to-equity ratio of 0.78, which is manageable. The return on equity improved to 12.81%, reflecting enhanced profitability. However, the equity ratio stands at 6.90%, indicating a high level of leverage, which could pose risks in adverse conditions.

Cash Flow

Positive

Operating cash flow improved significantly to $1.47 billion in 2024, a positive indicator of cash-generating ability. Free cash flow also increased, with a free cash flow to net income ratio of 1.88, suggesting efficient cash conversion. However, the overall cash flow situation exhibited fluctuations, with substantial financing cash outflows.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.13B	2.71B	3.34B	2.91B	2.79B
	Gross Profit
3.13B	2.71B	3.34B	2.91B	2.79B
	EBIT
1.01B	1.05B	1.34B	1.45B	672.00M
	EBITDA
1.01B	1.03B	1.26B	1.43B	758.00M
	Net Income Common Stockholders
784.00M	680.00M	907.00M	1.13B	539.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.13B	2.25B	2.46B	11.25B	1.88B
	Total Assets
88.78B	87.20B	89.55B	93.20B	81.48B
	Total Debt
4.78B	2.07B	7.75B	1.01B	1.34B
	Net Debt
4.78B	-137.00M	5.75B	-9.87B	-281.00M
	Total Liabilities
82.65B	81.51B	84.65B	85.74B	73.59B
	Stockholders Equity
6.12B	5.69B	4.89B	7.46B	7.89B
Cash Flow		Free Cash Flow
1.47B	772.00M	1.28B	423.00M	548.00M
	Operating Cash Flow
1.47B	885.00M	1.47B	629.00M	719.00M
	Investing Cash Flow
1.41B	2.37B	1.41B	-11.58B	-12.20B
	Financing Cash Flow
-2.81B	-3.20B	-2.81B	11.00B	11.32B

Zions Bancorporation National Association Technical Analysis

Technical Analysis Sentiment

Negative

Last Price46.61

Price Trends

50DMA

47.69

Negative

100DMA

51.85

Negative

200DMA

50.97

Negative

Market Momentum

MACD

-0.61

Negative

RSI

53.75

Neutral

STOCH

86.08

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZION, the sentiment is Negative. The current price of 46.61 is above the 20-day moving average (MA) of 43.95, below the 50-day MA of 47.69, and below the 200-day MA of 50.97, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 86.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZION.

Zions Bancorporation National Association Risk Analysis

Zions Bancorporation National Association disclosed 36 risk factors in its most recent earnings report. Zions Bancorporation National Association reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Zions Bancorporation National Association Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTFC	75 Outperform	$7.54B	11.14	11.58%	1.66%	6.79%	4.65%
UMBF	72 Outperform	$7.10B	12.29	8.33%	1.67%	20.50%	5.69%
PB	70 Outperform	$6.66B	13.35	6.83%	3.35%	9.03%	20.88%
ZION	69 Neutral	$6.69B	8.84	13.10%	3.70%	4.84%	29.25%
BOKF	68 Neutral	$6.17B	10.99	10.19%	2.39%	6.47%	26.85%
BPOP	68 Neutral	$6.91B	10.28	12.54%	2.73%	9.33%	43.64%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

* Financial Sector Average

Performance Comparison

ZION

Zions Bancorporation National Association

46.61

4.42

10.48%

BOKF

Bok Financial

96.04

5.75

6.37%

BPOP

Popular

99.61

13.24

15.33%

Prosperity Bancshares

69.89

8.87

14.54%

UMBF

UMB Financial

100.34

19.08

23.48%

WTFC

Wintrust Financial

115.84

16.75

16.90%

Zions Bancorporation National Association Earnings Call Summary

Earnings Call Date:Apr 21, 2025

(Q1-2025)

% Change Since: 5.26%|

Next Earnings Date:Jul 21, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive and negative aspects. While there was significant improvement in net earnings and net interest margin, challenges such as decreased customer-related income, increased economic uncertainty, and higher non-interest expenses were notable concerns.

Q1-2025 Updates

Positive Updates

Improved Net Earnings

Net earnings for the quarter were $169 million or $1.13 per share, representing an 18% improvement compared to the same period last year.

Net Interest Margin Growth

The net interest margin increased for the fifth consecutive quarter to 3.10%, reflecting improved deposit pricing and cost management.

Recognition and Expansion

Zions Bancorp was recognized by Coalition Greenwich as one of the top 10 banks in the industry. The acquisition of four branches in California added approximately $630 million of deposits and $420 million in loans.

Stable Credit Quality

Net loan charge-offs remained low, and the allowance for credit losses was stable at 1.24%.

Negative Updates

Decline in Customer-Related Income

Customer-related income decreased by 10% on a linked-quarter basis due to a reduction in capital market fees.

Increased Economic Uncertainty

Uncertainty regarding tariffs and interest rates has created challenges in forecasting future performance and has impacted loan growth expectations.

Deposit Decrease

Deposits decreased by 1.9% due to seasonal outflows, despite the addition from the Coachella Valley acquisition.

Higher Non-Interest Expense

Adjusted non-interest expenses increased by $24 million due to seasonality and increased deposit insurance costs.

Company Guidance

During the Zions Bancorp Q1 2025 earnings call, the company provided guidance for the first quarter of 2026, highlighting several key metrics. Net earnings for Q1 2025 were reported at $169 million, or $1.13 per share, an 18% improvement from the previous year. The net interest margin increased to 3.10% from 3.05% in the prior quarter, while the average cost of interest-bearing deposits decreased by 26 basis points sequentially. The quarter's adjusted pre-provision net revenue was $267 million, showing a 10% year-over-year growth. Non-performing assets to loans remained stable, and the net loan charge-offs were low at $16 million. The allowance for credit losses was maintained at 1.24% of total loans. For Q1 2026, the bank expects net interest income to be slightly to moderately increasing, with customer-related fee income also anticipated to rise slightly to moderately. Despite economic uncertainties, Zions Bancorp remains focused on managing risks, maintaining strong credit quality, and leveraging opportunities for growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.