NasdaqGS:KRNY

Stock Analysis Report

Executive Summary

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Kearny Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

KRNY

1.6%

US Mortgage

0.4%

US Market


1 Year Return

2.1%

KRNY

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: KRNY underperformed the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: KRNY underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

KRNYIndustryMarket
7 Day1.7%1.6%0.4%
30 Day2.3%1.0%-1.2%
90 Day-1.0%4.0%-0.4%
1 Year3.8%2.1%17.7%15.2%9.3%6.9%
3 Year1.6%-3.7%41.2%31.8%45.8%36.4%
5 Year49.4%40.3%71.5%53.4%62.9%45.1%

Price Volatility Vs. Market

How volatile is Kearny Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kearny Financial undervalued compared to its fair value and its price relative to the market?

29.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate KRNY's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate KRNY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KRNY is poor value based on its PE Ratio (29x) compared to the Mortgage industry average (14.4x).

PE vs Market: KRNY is poor value based on its PE Ratio (29x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: KRNY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KRNY is good value based on its PB Ratio (1x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Kearny Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRNY's earnings are forecast to decline over the next 3 years (-9% per year).

Earnings vs Market: KRNY's earnings are forecast to decline over the next 3 years (-9% per year).

High Growth Earnings: KRNY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KRNY's revenue (0.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KRNY's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KRNY's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has Kearny Financial performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KRNY's earnings have grown significantly by 32.3% per year over the past 5 years.

Accelerating Growth: KRNY's earnings growth over the past year (115.1%) exceeds its 5-year average (32.3% per year).

Earnings vs Industry: KRNY earnings growth over the past year (115.1%) exceeded the Mortgage industry 31.5%.


Return on Equity

High ROE: KRNY's Return on Equity (3.7%) is considered low.


Return on Assets

ROA vs Industry: KRNY's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate KRNY's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Kearny Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: KRNY has a low level of unsold assets or inventory.

Debt Coverage by Assets: KRNY's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: KRNY's level of assets compared to its equity is low.

Allowance for Bad Loans: KRNY has a sufficient allowance for bad loans.

Low Risk Liabilities: KRNY's liabilities are made up of primarily low risk sources of funding.

Loan Level: KRNY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: KRNY's loans are broadly funded by customer deposits.

Level of Bad Loans: KRNY has an appropriate level of bad loans (0.43%)


Next Steps

Dividend

What is Kearny Financial's current dividend yield, its reliability and sustainability?

2.98%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KRNY's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KRNY's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: KRNY's dividend payments have been volatile in the past 10 years.

Growing Dividend: KRNY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), KRNY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KRNY's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).


Next Steps

Management

What is the CEO of Kearny Financial's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Craig Montanaro (53yo)

8.5yrs

Tenure

US$946,530

Compensation

Mr. Craig L. Montanaro has been the President and Chief Executive Officer of Kearny Financial Corp. and its subsidiary Kearny Federal Savings Bank since April 1, 2010 and April 2011 respectively. Mr. Monta ...


CEO Compensation Analysis

Compensation vs. Market: Craig's total compensation ($USD946.53K) is about average for companies of similar size in the US market ($USD2.69M).

Compensation vs Earnings: Craig's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: KRNY's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

18.3yrs

Average Tenure

73yo

Average Age

Experienced Board: KRNY's board of directors are seasoned and experienced ( 18.3 years average tenure).


Insider Trading

Insider Buying: KRNY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$50,20004 Sep 19
John McGovern
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$12.55
SellUS$43,33026 Aug 19
John Regan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$12.38
SellUS$53,01520 Jun 19
John Regan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$13.28
SellUS$20,17006 Jun 19
Patrick Joyce
EntityIndividual
Shares1,500
Max PriceUS$13.46
SellUS$67,60630 May 19
Eric Heyer
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares5,000
Max PriceUS$13.52
SellUS$65,85119 Mar 19
Patrick Joyce
EntityIndividual
Shares5,000
Max PriceUS$13.18
SellUS$63,20719 Mar 19
Thomas DeMedici
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Credit Officer
Shares4,789
Max PriceUS$13.23
SellUS$52,63519 Mar 19
Craig Montanaro
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$13.19
SellUS$97,84305 Feb 19
John Regan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$13.08
SellUS$43,95213 Dec 18
Theodore Aanensen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$12.56

Ownership Breakdown


Management Team

  • Craig Montanaro (53yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$946.53k
  • Eric Heyer (57yo)

    Senior EVP & COO

    • Tenure: 1.3yrs
    • Compensation: US$547.43k
  • Erika Parisi (54yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 0.3yrs
    • Compensation: US$416.97k
  • Anthony Bilotta (59yo)

    Executive VP & Chief Banking Officer of Kearny Bank

    • Tenure: 1.3yrs
    • Compensation: US$1.86m
  • Kimberly Manfredo

    1st VP and Director of HR

    • Tenure: 0yrs
  • Thomas McGurk

    Chief Investment Officer

    • Tenure: 4.8yrs
  • Keith Suchodolski (39yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.43m
  • Thomas DeMedici (58yo)

    Executive VP & Chief Credit Officer

    • Tenure: 0yrs
    • Compensation: US$1.23m
  • Timothy Swansson (42yo)

    Executive VP and Chief Technology & Innovation Officer

    • Tenure: 0.8yrs
  • Taryn Rockwell

    Investor Relations Associate

    • Tenure: 0yrs

Board Members

  • Leopold Montanaro (79yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$126.75k
  • Craig Montanaro (53yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$946.53k
  • Matthew McClane (82yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$133.72k
  • John Regan (74yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$126.67k
  • John McGovern (58yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$199.54k
  • Joseph Mazza (75yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$138.49k
  • John Mazur (65yo)

    Chairman of the Board

    • Tenure: 15.8yrs
    • Compensation: US$161.69k
  • John Hopkins (72yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$143.33k
  • Ted Aanensen (74yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$140.76k
  • Raymond Chandonnet (53yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$117.28k

Company Information

Kearny Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kearny Financial Corp.
  • Ticker: KRNY
  • Exchange: NasdaqGS
  • Founded: 1884
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.134b
  • Shares outstanding: 84.44m
  • Website: https://www.kearnybank.com

Number of Employees


Location

  • Kearny Financial Corp.
  • 120 Passaic Avenue
  • Fairfield
  • New Jersey
  • 7004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRNYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2005

Biography

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. The company offers various deposit products, including inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:57
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.