Valley National Bancorp Fundamental Analysis (NASDAQ: VLY)
Valley National Bancorp Fundamental Analysis (NASDAQ: VLY)
Valley National Bancorp (NASDAQ: VLY) shows moderate financial fundamentals with a PE ratio of 12.03, profit margin of 23.26%, and ROE of 8.88%. The company generates $3.0B in annual revenue with weak year-over-year growth of -2.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VLY's fundamental strength across five key dimensions:
Efficiency Score
WeakVLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVLY trades at attractive valuation levels.
Growth Score
ModerateVLY shows steady but slowing expansion.
Financial Health Score
ModerateVLY shows balanced financial health with some risks.
Profitability Score
ModerateVLY maintains healthy but balanced margins.
Key Financial Metrics
Is VLY Expensive or Cheap?
P/E Ratio
VLY trades at 12.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VLY's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values Valley National Bancorp at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.00 times EBITDA. This signals the market has high growth expectations.
How Well Does VLY Make Money?
Net Profit Margin
For every $100 in sales, Valley National Bancorp keeps $23.26 as profit after all expenses.
Operating Margin
Core operations generate 14.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.88 in profit for every $100 of shareholder equity.
ROA
Valley National Bancorp generates $1.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valley National Bancorp generates strong operating cash flow of $783.73M, reflecting robust business health.
Free Cash Flow
Valley National Bancorp generates strong free cash flow of $762.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.38 in free cash annually.
FCF Yield
VLY converts 9.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How VLY Stacks Against Its Sector Peers
| Metric | VLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.03 | 21.14 | Better (Cheaper) |
| ROE | 8.88% | 673.00% | Weak |
| Net Margin | 23.26% | -559.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 0.17 | 909.81 | Weak Liquidity |
| ROA | 1.05% | 4078559.00% | Weak |
VLY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valley National Bancorp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.90%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
10.45%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
51.66%
Industry Style: Value, Dividend, Cyclical
High Growth