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Zions Bancorporation National Association (ZION)
NASDAQ:ZION
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Zions Bancorporation National Association
(NASDAQ:ZION)
Rating:78Outperform
Price Target:
$53.00
▲( 13.78% Upside)
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 seems more open to talking about acquisitions, especially now that its tech transformation is finally complete, putting it in a good position for potential deals.
Stock Valuation
The analyst is raising the rating on Zions Bancorporation to BUY due to the stock being undervalued compared to its peers.
Negative Factors
Earnings Expectations
The quarter disappointed relative to estimates, as the forward guide was lowered marginally given a more cautious outlook on loan growth.
Macroeconomic Outlook
Management tone on the macro environment was more negative, given tariff-related uncertainty and weaker sentiment among clients.
Regulatory Environment
It is unlikely the stock gets credit for a provision beat in this more uncertain macro environment.
Zions Bancorporation National Association (ZION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.87B
Dividend Yield3.58%
Average Volume (3M)1.57M
Price to Earnings (P/E)9.1
Beta (1Y)1.46
Revenue Growth4.84%
EPS Growth28.90%
CountryUS
Employees9,392
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.13
Shares Outstanding147,570,820
10 Day Avg. Volume1,242,243
30 Day Avg. Volume1,573,405
Financial Highlights & Ratios
PEG Ratio2.64
Price to Book (P/B)1.15
Price to Sales (P/S)0.00
P/FCF Ratio7.47
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda2.26
Forecast
1Y Price Target
$53.53Price Target Upside14.92% Upside
Rating ConsensusHold
Number of Analyst Covering16
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 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 demonstrates strong revenue and profit growth, with efficient cash flow management and a healthy balance sheet. However, high leverage poses potential risks.Income Statement
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.82
Very Positive
Balance Sheet
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.75
Positive
Cash Flow
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.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.97B | 4.99B | 2.71B | 3.34B | 2.91B | 2.79B | Gross Profit |
| 3.10B | 3.06B | 2.71B | 3.34B | 2.91B | 2.79B | EBIT |
| 1.05B | 1.01B | 1.05B | 1.34B | 1.45B | 672.00M | EBITDA |
| 1.17B | 1.14B | 1.03B | 1.26B | 1.43B | 758.00M | Net Income Common Stockholders |
| 801.00M | 784.00M | 680.00M | 907.00M | 1.13B | 539.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.07B | 14.12B | 2.25B | 2.46B | 11.25B | 1.88B | Total Assets |
| 87.99B | 88.78B | 87.20B | 89.55B | 93.20B | 81.48B | Total Debt |
| 4.44B | 4.37B | 2.07B | 7.75B | 1.01B | 1.34B | Net Debt |
| 1.63B | 866.00M | -137.00M | 5.75B | -9.87B | -281.00M | Total Liabilities |
| 81.67B | 82.65B | 81.51B | 84.65B | 85.74B | 73.59B | Stockholders Equity |
| 6.33B | 6.12B | 5.69B | 4.89B | 7.46B | 7.89B |
| Cash Flow | Free Cash Flow | ||||
| 972.00M | 1.05B | 772.00M | 1.28B | 423.00M | 548.00M | Operating Cash Flow |
| 1.07B | 1.07B | 885.00M | 1.47B | 629.00M | 719.00M | Investing Cash Flow |
| -32.00M | -1.56B | 2.37B | 1.41B | -11.58B | -12.20B | Financing Cash Flow |
| -910.00M | 427.00M | -3.20B | -2.81B | 11.00B | 11.32B |
Zions Bancorporation National Association Technical Analysis
Negative
46.58
Price Trends
46.35
Positive
50.24
Negative
50.47
Negative
Market Momentum
0.53
Positive
48.43
Neutral
14.71
Positive
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 46.58 is below the 20-day moving average (MA) of 46.88, above the 50-day MA of 46.35, and below the 200-day MA of 50.47, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 14.71 is Positive, 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 2 New Risks
1.
We have a concentration of risk from counterparties, which may have unique risk characteristics that may adversely affect our results. Q4, 2024
2.
Political developments, including those arising from transitions in administration and shifts in congressional control, may create volatility and uncertainty, potentially resulting in significant changes in the size, scope, and effectiveness of government agencies and services. Q4, 2024
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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.87B | 9.07 | 13.06% | 3.58% | 4.84% | 28.90% | |
76 Outperform | $6.66B | 13.36 | 6.83% | 3.26% | 9.02% | 20.88% | |
75 Outperform | $7.91B | 11.69 | 11.58% | 1.56% | 6.79% | 4.65% | |
72 Outperform | $7.75B | 12.84 | 8.33% | 1.55% | 20.50% | 5.69% | |
69 Neutral | $5.97B | 10.66 | 10.17% | 2.40% | 6.58% | 26.56% | |
68 Neutral | $7.02B | 10.58 | 12.54% | 2.58% | 9.33% | 43.64% | |
64 Neutral | $12.64B | 9.78 | 7.67% | 17015.08% | 12.23% | -6.02% |
* Financial Sector Average
Performance Comparison
ZION
Zions Bancorporation National Association
46.58
5.43
13.20%
BOKF
Bok Financial
92.90
4.01
4.51%
BPOP
Popular
102.50
16.38
19.02%
PB
Prosperity Bancshares
69.79
10.19
17.10%
UMBF
UMB Financial
101.50
22.18
27.96%
WTFC
Wintrust Financial
118.21
22.36
23.33%
Zions Bancorporation National Association Earnings Call Summary
Earnings Call Date:Apr 21, 2025
(Q1-2025)
| % Change Since: 6.10%|
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.