Zions Bancorporation National Association (ZION) AI Stock Analysis

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Zions Bancorporation National Association

(NASDAQ:ZION)

Rating:77Outperform

Price Target:

$65.00

▲(17.37%Upside)

Zions Bancorporation scores strongly due to its robust financial performance and positive earnings call, highlighting impressive growth in earnings and strategic initiatives. Technical indicators reinforce the positive outlook, though caution is advised due to potential volatility from overbought signals. Valuation metrics suggest the stock is attractively priced with a sustainable dividend yield.

Positive Factors

Earnings Potential

Higher loan growth and NIM drive our 2025/2026 NII estimates up, indicating improved future earnings potential for ZION.

Financial Performance

ZION saw NIM expand for the 6th straight quarter, which is a positive indicator for the company's financial health.

Negative Factors

Macroeconomic Environment

Management tone on the macro environment was also decidedly more negative given tariff related uncertainty, with potential negative impacts for businesses.

Profitability

With higher fees come higher expenses, which could impact profitability.

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

Market Cap

$8.17B

Dividend Yield3.07%

Average Volume (3M)1.48M

Price to Earnings (P/E)10.1

Beta (1Y)1.52

Revenue Growth2.64%

EPS Growth32.56%

CountryUS

Employees9,392

SectorFinancial

Sector Strength75

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.63

Shares Outstanding147,570,820

10 Day Avg. Volume1,850,360

30 Day Avg. Volume1,478,340

Financial Highlights & Ratios

PEG Ratio1.45

Price to Book (P/B)1.27

Price to Sales (P/S)0.00

P/FCF Ratio8.63

Enterprise Value/Market Cap1.79

Enterprise Value/Revenue0.74

Enterprise Value/Gross Profit4.73

Enterprise Value/Ebitda3.41

Forecast

1Y Price Target

$60.85

Price Target Upside9.88% Upside

Rating ConsensusHold

Number of Analyst Covering18

Zions Bancorporation National Association Business Overview & Revenue Model

Company DescriptionZions Bancorporation, National Association (ZION) is a financial services company headquartered in Salt Lake City, Utah. It operates in the banking sector, providing a range of financial services primarily to small and medium-sized businesses, as well as individuals. Zions Bancorporation offers traditional banking services, including savings and checking accounts, loans, credit cards, and wealth management services. The company also provides specialized services, such as treasury management and capital markets support, to meet the unique needs of its diverse clientele.

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:Jul 21, 2025

(Q2-2025)

% Change Since: -2.14%|

Next Earnings Date:Oct 20, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, with significant improvements in net earnings, net interest margin, and efficiency ratio. There was notable growth in small business banking and positive feedback on new product offerings. However, challenges remain in managing deposit costs and the decline in average deposits. Despite these issues, the overall sentiment is positive given the strength of the financial results and growth initiatives.

Q2-2025 Updates

Positive Updates

Significant Increase in Net Earnings

Second quarter net earnings were $243 million, representing a 28% improvement over the prior year period and a 44% increase compared to the first quarter.

Expansion in Net Interest Margin

The net interest margin increased for the sixth consecutive quarter to 3.17%, supported by lower funding costs and an improved earning asset mix.

Growth in Small Business Banking

The SBA 7(a) program saw a 91% increase in the number of deals booked in the first 9 months of the SBA's 2025 fiscal year relative to the same period last year.

Positive Response to Consumer Gold Account Offering

Sales of the new consumer gold account increased by 78% versus its predecessor, with average balances around $30,000.

Improvement in Efficiency Ratio

The efficiency ratio improved to 62.2%, reflecting better cost management and revenue growth.

Increase in Diluted Earnings Per Share

Diluted earnings per share was $1.63, up from $1.13 in the prior period and $1.28 in the year-ago period.

Improvement in Asset Quality

Net loan losses for the quarter were $10 million or 7 basis points annualized, and nonperforming assets remained low at 0.51% of loans and other real estate owned.

Negative Updates

Deposit Decline on a Linked Quarter Basis

Average customer deposits were down 1.4% annualized on a linked quarter basis.

Challenges in Deposit Costs

Total average deposits declined 0.9% due to seasonal customer deposit outflows and an 8% decline in average broker deposits.

Negative Provision for Credit Losses

A negative $1 million provision for credit losses was recorded, which, combined with net charge-offs, reduced the allowance for credit losses by $11 million.

Company Guidance

During the Zions Bancorp Earnings Conference Call for the second quarter of 2025, the company reported net earnings of $243 million, marking a 28% increase year-over-year and a 44% rise from the first quarter. Key metrics highlighted included a net interest margin expansion to 3.17% and an efficiency ratio improvement to 62.2%. The bank experienced a 5.6% annualized growth in average loans on a linked quarter basis, with average customer deposits rising by 0.5% year-over-year. Notably, the bank's consumer gold account offering, launched in mid-May in Nevada, saw a 78% increase in sales through early July, with average balances around $30,000. This success came before the commencement of paid marketing efforts in late June. Additionally, the bank's diluted earnings per share increased to $1.63, up from $1.13 in the prior year, and the allowance for credit losses as a percentage of loans decreased to 1.2%. The company also outlined an optimistic outlook for continued growth in net interest income and customer-related fee income, supported by strategic investments in revenue-generating initiatives and market expansions.

Zions Bancorporation National Association Financial Statement Overview

Summary

Zions Bancorporation demonstrates solid profitability with strong EBIT and EBITDA margins. Despite a slight decline in revenue growth, the company manages efficient operations and maintains moderate leverage. The low equity ratio poses some financial stability risks, but strong cash generation supports its financial health.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.99B	4.62B	3.34B	2.97B	2.94B
Gross Profit	3.06B	2.98B	3.03B	3.19B	2.38B
EBITDA	1.14B	1.03B	1.26B	1.43B	758.00M
Net Income	784.00M	680.00M	907.00M	1.13B	539.00M
Balance Sheet
Total Assets	88.78B	87.20B	89.55B	93.20B	81.48B
Cash, Cash Equivalents and Short-Term Investments	12.63B	12.50B	13.91B	34.93B	17.35B
Total Debt	4.37B	4.54B	11.07B	1.92B	2.91B
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	1.05B	772.00M	1.28B	423.00M	548.00M
Operating Cash Flow	1.15B	885.00M	1.47B	629.00M	719.00M
Investing Cash Flow	-1.64B	2.37B	1.41B	-11.58B	-12.20B
Financing Cash Flow	427.00M	-3.20B	-2.81B	11.00B	11.32B

Zions Bancorporation National Association Technical Analysis

Technical Analysis Sentiment

Positive

Last Price55.38

Price Trends

50DMA

51.17

Positive

100DMA

48.80

Positive

200DMA

51.73

Positive

Market Momentum

MACD

1.50

Positive

RSI

57.82

Neutral

STOCH

42.61

Neutral

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 55.38 is above the 20-day moving average (MA) of 55.33, above the 50-day MA of 51.17, and above the 200-day MA of 51.73, indicating a bullish trend. The MACD of 1.50 indicates Positive momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 42.61 is Neutral, 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 (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTFC	81 Outperform	$8.84B	12.49	11.60%	1.44%	4.30%	10.10%
BPOP	79 Outperform	$7.90B	11.19	12.73%	2.36%	6.27%	45.08%
BOKF	78 Outperform	$6.77B	12.56	9.57%	2.15%	-0.77%	17.19%
ZION	77 Outperform	$8.17B	10.11	13.28%	3.07%	2.64%	32.56%
UMBF	72 Outperform	$8.21B	13.59	8.33%	1.47%	20.70%	5.69%
PB	70 Neutral	$6.45B	12.34	7.02%	3.40%	3.66%	20.33%
Sector *	68 Neutral	$17.21B	11.20	9.71%	3.57%	11.12%	-4.52%

* Financial Sector Average

Performance Comparison

ZION

Zions Bancorporation National Association

55.38

5.24

10.45%

BOKF

Bok Financial

105.33

3.36

3.30%

BPOP

Popular

115.33

16.01

16.12%

Prosperity Bancshares

67.70

-1.86

-2.67%

UMBF

UMB Financial

108.12

11.53

11.94%

WTFC

Wintrust Financial

132.11

25.63

24.07%

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 23, 2025