Zions Bancorporation National Association (ZION) AI Stock Analysis

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Zions Bancorporation National Association

(NASDAQ:ZION)

Rating:76Outperform

Price Target:

$61.00

▲(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)

Market Cap

$8.19B

Dividend Yield3.1%

Average Volume (3M)1.19M

Price to Earnings (P/E)10.8

Beta (1Y)1.52

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. Volume1,256,319

30 Day Avg. Volume1,186,326

Financial Highlights & Ratios

PEG Ratio2.60

Price to Book (P/B)1.13

Price to Sales (P/S)0.00

P/FCF Ratio7.38

Enterprise Value/Market Cap1.07

Enterprise Value/Revenue0.45

Enterprise Value/Gross Profit2.84

Enterprise Value/Ebitda2.05

Forecast

1Y Price Target

$53.93

Price Target Upside-2.83% Downside

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 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

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	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	3.10B	3.06B	2.98B	3.03B	3.19B	2.38B
EBITDA	1.17B	1.14B	1.03B	1.26B	1.43B	758.00M
Net Income	801.00M	784.00M	680.00M	907.00M	1.13B	539.00M
Balance Sheet
Total Assets	87.99B	88.78B	87.20B	89.55B	93.20B	81.48B
Cash, Cash Equivalents and Short-Term Investments	12.07B	12.63B	12.50B	13.91B	34.93B	17.35B
Total Debt	4.44B	4.37B	4.54B	11.07B	1.92B	2.91B
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	1.15B	885.00M	1.47B	629.00M	719.00M
Investing Cash Flow	-32.00M	-1.64B	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

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
WTFC	82 Outperform	$8.83B	13.04	11.58%	1.52%	7.10%	4.65%
BOKF	77 Outperform	$6.62B	11.81	10.17%	2.21%	6.58%	26.56%
ZION	76 Outperform	$8.19B	10.81	13.06%	3.10%	4.84%	28.90%
PB	74 Outperform	$7.04B	14.11	6.83%	3.14%	9.02%	20.88%
BPOP	74 Outperform	$7.83B	11.80	12.54%	2.45%	9.33%	43.64%
UMBF	72 Outperform	$8.38B	13.87	8.33%	1.45%	20.70%	5.69%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%

* Financial Sector Average

Performance Comparison

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%

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