(VLY) Valley National Bancorp - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 7.243m USD | Total Return: 62.5% in 12m
Avg Turnover: 64.1M
EPS Trend: -36.8%
Qual. Beats: 0
Rev. Trend: 69.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Valley National Bancorp (NASDAQ: VLY) is a regional bank holding company headquartered in New Jersey, providing commercial, retail, and wealth management services. The company operates through three primary segments: Consumer Banking, Commercial Banking, and Treasury and Corporate. Its portfolio includes diverse lending products ranging from residential mortgages and commercial real estate to specialized equipment leasing and insurance-secured loans.
The business model emphasizes diversified revenue streams by integrating traditional banking with niche services such as cannabis-related business banking and homeowners association financial products. Regional banks like Valley National typically rely on the net interest margin-the difference between interest earned on loans and interest paid on deposits-as a primary driver of profitability. Additionally, the company maintains a significant fee-based income structure through its insurance agency, brokerage, and trust administration services.
Evaluating the long-term valuation metrics on ValueRay can help determine if the current stock price reflects these underlying fundamentals. Founded in 1927, the institution has expanded its footprint beyond its historical base to include operations across the Northeast, Florida, and Alabama.
- Commercial real estate concentration heightens credit risk during interest rate volatility
- Net interest margin compression follows rising deposit costs and funding competition
- Expansion into cannabis and venture banking creates high-growth niche revenue streams
- Asset quality deterioration in New York and New Jersey metropolitan markets
- Regulatory capital requirements influence dividend sustainability and share repurchase capacity
| Net Income: 655.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.35 > 1.0 |
| NWC/Revenue: -4.06% < 20% (prev -1.37k%; Δ 1.36k% < -1%) |
| CFO/TA 0.01 > 3% & CFO 570.6m > Net Income 655.8m |
| Net Debt (3.05b) to EBITDA (880.7m): 3.46 < 3 |
| Current Ratio: 0.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (559.3m) vs 12m ago -0.72% < -2% |
| Gross Margin: 56.47% > 18% (prev 0.44%; Δ 5.60k% > 0.5%) |
| Asset Turnover: 5.58% > 50% (prev 5.70%; Δ -0.13% > 0%) |
| Interest Coverage Ratio: 0.57 > 6 (EBITDA TTM 880.7m / Interest Expense TTM 1.44b) |
| A: -0.00 (Total Current Assets 606.3m - Total Current Liabilities 749.3m) / Total Assets 64.5b |
| B: 0.03 (Retained Earnings 2.00b / Total Assets 64.5b) |
| C: 0.01 (EBIT TTM 813.9m / Avg Total Assets 63.2b) |
| D: 0.04 (Book Value of Equity 2.10b / Total Liabilities 56.6b) |
| Altman-Z'' = 0.21 = B |
| DSRI: 1.03 (Receivables 244.3m/238.3m, Revenue 3.52b/3.53b) |
| GMI: 0.77 (GM 56.47% / 43.73%) |
| AQI: 1.02 (AQ_t 0.98 / AQ_t-1 0.96) |
| SGI: 1.00 (Revenue 3.52b / 3.53b) |
| TATA: 0.00 (NI 655.8m - CFO 570.6m) / TA 64.5b) |
| Beneish M = -3.20 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 13.41 with a total of 4,486,115 shares traded.
Over the past week, the price has changed by +4.80%,
over one month by +2.26%,
over three months by +5.94% and
over the past year by +62.49%.
Valley National Bancorp has received a consensus analysts rating of 3.58. Therefore, it is recommended to hold VLY.
- StrongBuy: 2
- Buy: 3
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 15.7 | 17.2% |
P/E Forward = 10.2669
P/S = 3.7316
P/B = 0.9586
P/EG = 1.1627
Revenue TTM = 3.52b USD
EBIT TTM = 813.9m USD
EBITDA TTM = 880.7m USD
Long Term Debt = 2.62b USD (from longTermDebt, last quarter)
Short Term Debt = 63.9m USD (from shortTermDebt, last quarter)
Debt = 3.41b USD (from shortLongTermDebtTotal, last quarter) + Leases 364.0m
Net Debt = 3.05b USD (calculated: Debt 3.41b - CCE 362.1m)
Enterprise Value = 10.3b USD (7.24b + Debt 3.41b - CCE 362.1m)
Interest Coverage Ratio = 0.57 (Ebit TTM 813.9m / Interest Expense TTM 1.44b)
EV/FCF = 14.21x (Enterprise Value 10.3b / FCF TTM 724.3m)
FCF Yield = 7.04% (FCF TTM 724.3m / Enterprise Value 10.3b)
FCF Margin = 20.56% (FCF TTM 724.3m / Revenue TTM 3.52b)
Net Margin = 18.62% (Net Income TTM 655.8m / Revenue TTM 3.52b)
Gross Margin = 56.47% ((Revenue TTM 3.52b - Cost of Revenue TTM 1.53b) / Revenue TTM)
Gross Margin QoQ = 59.56% (prev 58.41%)
Tobins Q-Ratio = 0.16 (Enterprise Value 10.3b / Total Assets 64.5b)
Interest Expense / Debt = 42.09% (Interest Expense 1.44b / Debt 3.41b)
Taxrate = 21.64% (45.3m / 209.2m)
NOPAT = 637.8m (EBIT 813.9m * (1 - 21.64%))
Current Ratio = 0.27 (Total Current Assets 606.3m / Total Current Liabilities 2.25b)
Debt / Equity = 0.44 (Debt 3.41b / totalStockholderEquity, last quarter 7.83b)
Debt / EBITDA = 3.46 (Net Debt 3.05b / EBITDA 880.7m)
Debt / FCF = 4.21 (Net Debt 3.05b / FCF TTM 724.3m)
Total Stockholder Equity = 7.73b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.04% (Net Income 655.8m / Total Assets 64.5b)
RoE = 8.49% (Net Income TTM 655.8m / Total Stockholder Equity 7.73b)
RoCE = 7.87% (EBIT 813.9m / Capital Employed (Equity 7.73b + L.T.Debt 2.62b))
RoIC = 0.99% (NOPAT 637.8m / Invested Capital 64.5b)
WACC = 17.38% (E(7.24b)/V(10.7b) * Re(10.04%) + D(3.41b)/V(10.7b) * Rd(42.09%) * (1-Tc(0.22)))
Discount Rate = 10.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 4.21%
[DCF] Terminal Value 54.15% ; FCFF base≈626.1m ; Y1≈717.7m ; Y5≈1.06b
[DCF] Fair Price = 5.38 (EV 6.03b - Net Debt 3.05b = Equity 2.98b / Shares 554.1m; r=17.38% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -36.83 | EPS CAGR: -9.60% | SUE: 0.28 | # QB: 0
Revenue Correlation: 69.67 | Revenue CAGR: 4.73% | SUE: 0.60 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.31 | Chg30d=+0.59% | Revisions=+11% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.33 | Chg30d=+0.91% | Revisions=+27% | Analysts=10
EPS current Year (2026-12-31): EPS=1.29 | Chg30d=+2.05% | Revisions=+50% | GrowthEPS=+30.3% | GrowthRev=+12.2%
EPS next Year (2027-12-31): EPS=1.53 | Chg30d=+2.48% | Revisions=+67% | GrowthEPS=+18.6% | GrowthRev=+10.1%
[Analyst] Revisions Ratio: +67%