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Zions Bancorporation National Association (ZION)
NASDAQ:ZION

Zions Bancorporation National Association (ZION) AI Stock Analysis

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ZI

Zions Bancorporation National Association

(NASDAQ:ZION)

Rating:76Outperform
Price Target:
$61.00
â–²(9.91%Upside)
Zions Bancorporation scores strongly in financial performance and technical analysis. The company shows robust profitability and efficient operations, supported by positive technical momentum. Valuation is reasonable with a decent dividend yield. While earnings call insights are generally positive, caution is advised due to economic uncertainties and increased expenses.
Positive Factors
Dividends
Management raised the quarterly dividend, resulting in a yield of about 3.9%.
Financial Performance
Zions Bancorporation reported a significant increase in first-quarter net interest income, contributing to higher earnings per share.
Stock Valuation
Zions Bancorporation is considered undervalued compared to its peers, leading to an upgraded rating to BUY.
Negative Factors
Loan Growth Outlook
The forward guidance was lowered marginally due to a more cautious outlook on loan growth and expectations of more rate cuts.
Macro Environment
Management expressed a negative tone on the macro environment due to tariff-related uncertainty, which may impact businesses negatively.
Market Sentiment
The likelihood of the stock gaining credit for a provision beat is low in a more uncertain macro environment.

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

Zions Bancorporation National Association Business Overview & Revenue Model

Company DescriptionZions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services. As of December 31, 2020, it operated 422 branches, which included 273 owned and 149 leased. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.
How the Company Makes MoneyZions Bancorporation generates revenue primarily through interest income earned from its lending activities, which include business, consumer, and real estate loans. The company also earns non-interest income from fees and services related to deposit accounts, wealth management, and treasury and capital markets services. Zions Bancorporation benefits from its regional banking brands, which enhance its market presence and customer loyalty in distinct geographic areas. Additionally, strategic partnerships and community-focused initiatives help to bolster the company's reputation and support its earnings.

Zions Bancorporation National Association Earnings Call Summary

Earnings Call Date:Apr 21, 2025
(Q1-2025)
|
% Change Since: 26.42%|
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.

Zions Bancorporation National Association Financial Statement Overview

Summary
Zions Bancorporation demonstrates solid profitability with strong EBIT and EBITDA margins. The balance sheet shows moderate leverage, but the low equity ratio could pose a risk. Cash flow generation is healthy, although revenue growth is slightly challenging.
Income Statement
72
Positive
The TTM (Trailing-Twelve-Months) data shows a stable gross profit margin of 62.27% and a net profit margin of 16.11%, indicating strong profitability. However, there is a slight decline in revenue growth, which is a concern. EBIT and EBITDA margins are robust at 21.08% and 23.49% respectively, reflecting efficient cost management.
Balance Sheet
68
Positive
The debt-to-equity ratio is 0.70, indicating a moderate leverage level. The return on equity (ROE) is healthy at 12.66%, demonstrating effective use of equity. However, the equity ratio is somewhat low at 7.19%, suggesting potential risks in terms of financial stability.
Cash Flow
75
Positive
Free cash flow is positive and shows a stable base with a free cash flow to net income ratio of 1.21. The operating cash flow to net income ratio is 1.33, indicating strong cash conversion efficiency. However, the free cash flow has slightly decreased year over year.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.97B4.99B4.62B3.34B2.97B2.94B
Gross Profit3.10B3.06B2.98B3.03B3.19B2.38B
EBITDA1.17B1.14B1.03B1.26B1.43B758.00M
Net Income801.00M784.00M680.00M907.00M1.13B539.00M
Balance Sheet
Total Assets87.99B88.78B87.20B89.55B93.20B81.48B
Cash, Cash Equivalents and Short-Term Investments12.07B12.63B12.50B13.91B34.93B17.35B
Total Debt4.44B4.37B4.54B11.07B1.92B2.91B
Total Liabilities81.67B82.65B81.51B84.65B85.74B73.59B
Stockholders Equity6.33B6.12B5.69B4.89B7.46B7.89B
Cash Flow
Free Cash Flow972.00M1.05B772.00M1.28B423.00M548.00M
Operating Cash Flow1.07B1.15B885.00M1.47B629.00M719.00M
Investing Cash Flow-32.00M-1.64B2.37B1.41B-11.58B-12.20B
Financing Cash Flow-910.00M427.00M-3.20B-2.81B11.00B11.32B

Zions Bancorporation National Association Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.50
Price Trends
50DMA
48.10
Positive
100DMA
48.53
Positive
200DMA
50.97
Positive
Market Momentum
MACD
1.70
Negative
RSI
78.27
Negative
STOCH
94.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZION, the sentiment is Positive. The current price of 55.5 is above the 20-day moving average (MA) of 50.08, above the 50-day MA of 48.10, and above the 200-day MA of 50.97, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 78.27 is Negative, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$8.83B13.0411.58%1.52%7.10%4.65%
77
Outperform
$6.62B11.8110.17%2.21%6.58%26.56%
76
Outperform
$8.19B10.8113.06%3.10%4.84%28.90%
PBPB
74
Outperform
$7.04B14.116.83%3.14%9.02%20.88%
74
Outperform
$7.83B11.8012.54%2.45%9.33%43.64%
72
Outperform
$8.38B13.878.33%1.45%20.70%5.69%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZION
Zions Bancorporation National Association
55.50
14.28
34.64%
BOKF
Bok Financial
102.96
16.92
19.67%
BPOP
Popular
114.30
30.70
36.72%
PB
Prosperity Bancshares
73.86
16.50
28.77%
UMBF
UMB Financial
110.35
30.13
37.56%
WTFC
Wintrust Financial
131.92
37.02
39.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025