Zions Bancorporation National Association (ZION) AI Stock Analysis

• Market Cap: $8.49B
• Dividend Yield: 3.02%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.45
• Revenue Growth: 2.64%
• EPS Growth: 32.07%
• Country: US
• Employees: 9,392
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.63
• Shares Outstanding: 147,623,800
• 10 Day Avg. Volume: 1,680,946
• 30 Day Avg. Volume: 1,439,116
• PEG Ratio: 0.74
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 11.68
• 1Y Price Target: $61.76
• Price Target Upside: 7.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 72 Outperform
• Price Target: $63.00 ▲(9.49% Upside)

Zions Bancorporation's overall stock score is driven by strong earnings growth and positive technical indicators. The company's valuation is attractive, and the earnings call highlighted significant improvements. However, challenges in cash flow management and declining deposits slightly offset these strengths.

Positive Factors

Earnings Growth

The significant earnings growth reflects strong operational performance and effective cost management, indicating a robust business model and potential for sustained profitability.

Net Interest Margin Expansion

Consistent net interest margin expansion enhances profitability and demonstrates effective asset-liability management, supporting long-term financial stability.

SBA 7(a) Program Growth

Strong growth in the SBA 7(a) program indicates successful strategic initiatives and enhances the bank's competitive position in small business lending.

Negative Factors

Declining Deposit Balances

Declining deposit balances can impact liquidity and funding capabilities, potentially constraining the bank's ability to support loan growth and operational needs.

Challenges in CRE Portfolio

Ongoing challenges in the commercial real estate portfolio could lead to increased credit risk and impact asset quality, posing a threat to long-term financial health.

Pressure on Noninterest Expenses

Rising noninterest expenses can erode profitability margins, necessitating improved cost controls to maintain financial performance and shareholder value.

Zions Bancorporation National Association Business Overview & Revenue Model

Company Description

Zions 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 Money

Zions Bancorporation generates revenue primarily through net interest income, which arises from the interest earned on loans and investments minus the interest paid on deposits and borrowings. Key revenue streams include commercial loans, consumer loans, mortgages, and various banking fees. The bank also earns non-interest income from services such as wealth management, investment services, and fees associated with transaction processing. Strategic partnerships with financial technology companies enhance its service offerings and customer experience, contributing to customer retention and increased transaction volume, thereby bolstering overall earnings.

Zions Bancorporation National Association Financial Statement Overview

Summary

Zions Bancorporation demonstrates strong profitability and operational efficiency, with a stable balance sheet and moderate leverage. However, it faces challenges in revenue growth and cash flow management, with potential liquidity issues that need addressing.

Income Statement

Zions Bancorporation shows a stable income statement with a Gross Profit Margin of 63.85% and a Net Profit Margin of 16.98% for TTM (Trailing-Twelve-Months). However, the Revenue Growth Rate is negative at -4%, indicating a decline in revenue. The EBIT Margin and EBITDA Margin are healthy at 22.09% and 23.88%, respectively, suggesting efficient operations.

Balance Sheet

The balance sheet reflects a moderate Debt-to-Equity Ratio of 1.07, indicating a balanced approach to leveraging. The Return on Equity (ROE) is 13.27%, which is decent but shows room for improvement. The equity ratio is not provided, but the overall leverage appears manageable.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in Free Cash Flow Growth Rate at -33.64% for TTM. The Operating Cash Flow to Net Income Ratio is low at 0.94%, and the Free Cash Flow to Net Income Ratio is 85.66%, indicating potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.97B	4.99B	4.62B	3.34B	2.97B	2.94B
Gross Profit	3.17B	3.06B	2.98B	3.03B	3.19B	2.38B
EBITDA	1.22B	1.14B	1.03B	1.26B	1.43B	758.00M
Net Income	844.00M	784.00M	680.00M	907.00M	1.13B	539.00M
Balance Sheet
Total Assets	88.89B	88.78B	87.20B	89.55B	93.20B	81.48B
Cash, Cash Equivalents and Short-Term Investments	11.71B	12.63B	12.50B	13.91B	34.93B	17.35B
Total Debt	7.04B	4.37B	4.54B	11.07B	1.92B	2.91B
Total Liabilities	82.30B	82.65B	81.51B	84.65B	85.74B	73.59B
Stockholders Equity	6.60B	6.12B	5.69B	4.89B	7.46B	7.89B
Cash Flow
Free Cash Flow	645.00M	1.05B	772.00M	1.28B	423.00M	548.00M
Operating Cash Flow	753.00M	1.15B	885.00M	1.47B	629.00M	719.00M
Investing Cash Flow	-203.00M	-1.64B	2.37B	1.41B	-11.58B	-12.20B
Financing Cash Flow	-487.00M	427.00M	-3.20B	-2.81B	11.00B	11.32B

Zions Bancorporation National Association Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 57.54 is below the 20-day moving average (MA) of 57.55, above the 50-day MA of 55.46, and above the 200-day MA of 51.70, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 44.52 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPOP	79 Outperform	$8.65B	12.42	12.11%	2.23%	6.27%	45.08%
WTFC	79 Outperform	$8.97B	12.67	10.24%	1.45%	4.74%	10.10%
CFR	77 Outperform	$8.29B	13.88	14.51%	3.03%	4.04%	13.30%
CMA	75 Outperform	$8.92B	13.35	10.57%	4.09%	-8.62%	15.37%
ONB	74 Outperform	$8.68B	13.14	6.99%	2.53%	15.94%	-0.47%
ZION	72 Outperform	$8.49B	10.50	13.23%	3.02%	2.64%	32.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%