NasdaqGS:KRNY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.


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

Stable Share Price: KRNY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KRNY's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-6.6%

KRNY

-1.1%

US Mortgage

1.4%

US Market


1 Year Return

-17.9%

KRNY

4.7%

US Mortgage

22.6%

US Market

Return vs Industry: KRNY underperformed the US Mortgage industry which returned 7.4% over the past year.

Return vs Market: KRNY underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

KRNYIndustryMarket
7 Day-6.6%-1.1%1.4%
30 Day3.2%1.5%4.9%
90 Day14.9%10.9%14.6%
1 Year-15.0%-17.9%7.8%4.7%25.4%22.6%
3 Year-16.2%-22.4%20.0%10.5%46.8%37.0%
5 Year-0.4%-9.7%88.7%61.8%132.0%106.1%

Long-Term 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?

19.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KRNY ($10.75) is trading above our estimate of fair value ($3.44)

Significantly Below Fair Value: KRNY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KRNY is poor value based on its PE Ratio (19.8x) compared to the US Mortgage industry average (13.2x).

PE vs Market: KRNY is good value based on its PE Ratio (19.8x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: KRNY is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KRNY is good value based on its PB Ratio (0.8x) compared to the US Mortgage industry average (0.9x).


Next Steps

Future Growth

How is Kearny Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRNY's forecast earnings growth (11.1% per year) is above the savings rate (2%).

Earnings vs Market: KRNY's earnings (11.1% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: KRNY's earnings are forecast to grow, but not significantly.

Revenue vs Market: KRNY's revenue (10% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: KRNY's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KRNY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kearny Financial performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRNY has high quality earnings.

Growing Profit Margin: KRNY's current net profit margins (26.8%) are higher than last year (25.6%).


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 (6.2%) is below its 5-year average (32.3% per year).

Earnings vs Industry: KRNY earnings growth over the past year (6.2%) exceeded the Mortgage industry 2.7%.


Return on Equity

High ROE: KRNY's Return on Equity (4%) is considered low.


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


Financial Institutions Analysis

Asset Level: KRNY's Assets to Equity ratio (6.5x) is low.

Allowance for Bad Loans: KRNY has a sufficient allowance for bad loans (144%).

Low Risk Liabilities: 81% of KRNY's liabilities are made up of primarily low risk sources of funding.

Loan Level: KRNY has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: KRNY's Loans to Deposits ratio (97%) is appropriate.

Level of Bad Loans: KRNY has an appropriate level of bad loans (0.9%).


Next Steps

Dividend

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

2.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KRNY's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: KRNY's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.86%).


Stability and Growth of Payments

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 reasonable payout ratio (57%), KRNY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Craig Montanaro (54 yo)

9.75yrs

Tenure

US$1,136,426

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 ($USD1.14M) is below average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Montanaro
President9.75yrsUS$1.14m0.40%
$ 3.7m
Keith Suchodolski
Executive VP & CFO2.5yrsUS$463.85k0.073%
$ 682.6k
Eric Heyer
Senior EVP & COO2.5yrsUS$629.59k0.12%
$ 1.1m
Erika Parisi
Executive VP & Chief Administrative Officer1.5yrsUS$548.64k0.22%
$ 2.0m
Patrick Joyce
Executive VP & Chief Lending Officerno dataUS$615.73k0.12%
$ 1.2m
Thomas McGurk
Chief Investment Officer6yrsno datano data
Timothy Swansson
Executive VP and Chief Technology & Innovation Officer2yrsno data0.033%
$ 309.4k
Taryn Rockwell
Investor Relations Associateno datano datano data
Kimberly Manfredo
1st VP and Director of HRno datano datano data
Peter Cappello
Chief Risk Officer7.75yrsno datano data
Thomas DeMedici
Executive VP & Chief Credit Officerno dataUS$1.23m0.098%
$ 908.9k
John Dunne
Executive VP & Chief Risk Officer4.83yrsno data0.017%
$ 155.4k

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: KRNY's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Montanaro
President9.75yrsUS$1.14m0.40%
$ 3.7m
Leopold Montanaro
Director17.5yrsUS$129.76k0.28%
$ 2.6m
Charles Pivirotto
Independent Director2.75yrsUS$86.80k0.062%
$ 574.6k
John Regan
Independent Director22yrsUS$135.36k0.14%
$ 1.3m
John McGovern
Independent Director22yrsUS$246.13k0.31%
$ 2.9m
Joseph Mazza
Independent Director28yrsUS$148.53k0.24%
$ 2.2m
John Mazur
Independent Chairman of the Board17yrsUS$193.35k0.26%
$ 2.4m
John Hopkins
Independent Director19yrsUS$155.13k0.60%
$ 5.5m
Theodore Aanensen
Independent Director35yrsUS$156.62k0.18%
$ 1.6m
Raymond Chandonnet
Independent Director5.08yrsUS$137.36k0.073%
$ 675.6k
Catherine Lawton
Independent Director2.25yrsUS$123.41k0.069%
$ 645.0k
Christopher Petermann
Independent Director5.08yrsUS$142.24k0.054%
$ 498.2k

17.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: KRNY's board of directors are seasoned and experienced ( 17.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KRNY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

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$930.954m
  • Shares outstanding: 86.60m
  • 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 Analysis2021/01/21 23:24
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.