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.


Snowflake Analysis

Flawless balance sheet with acceptable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

KRNY

-32.4%

US Mortgage

1.9%

US Market


1 Year Return

-41.5%

KRNY

-23.2%

US Mortgage

4.3%

US Market

Return vs Industry: KRNY underperformed the US Mortgage industry which returned -23.2% over the past year.

Return vs Market: KRNY underperformed the US Market which returned 4.3% over the past year.


Shareholder returns

KRNYIndustryMarket
7 Day2.2%-32.4%1.9%
30 Day-4.5%19.9%2.7%
90 Day4.8%42.8%26.4%
1 Year-40.0%-41.5%-21.2%-23.2%6.5%4.3%
3 Year-42.2%-46.1%19.6%11.0%35.1%26.2%
5 Year-24.1%-30.3%2.6%-8.6%67.0%48.4%

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?

16.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KRNY ($8) is trading above our estimate of fair value ($0.21)

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 (16.8x) compared to the Mortgage industry average (11.1x).

PE vs Market: KRNY is poor value based on its PE Ratio (16.8x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: KRNY is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: KRNY is good value based on its PB Ratio (0.6x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

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

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRNY's forecast earnings growth (3.8% per year) is above the savings rate (2.2%).

Earnings vs Market: KRNY's earnings (3.8% per year) are forecast to grow slower than the US market (22.7% per year).

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

Revenue vs Market: Insufficient data to determine if KRNY's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if KRNY's revenue is forecast to grow faster 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?

34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRNY has high quality earnings.

Growing Profit Margin: KRNY's current net profit margins (25.1%) are higher than last year (24.3%).


Past Earnings Growth Analysis

Earnings Trend: KRNY's earnings have grown significantly by 34.4% per year over the past 5 years.

Accelerating Growth: KRNY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KRNY had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the Mortgage industry average (4.5%).


Return on Equity

High ROE: KRNY's Return on Equity (3.7%) 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 (6.3x) is low.

Allowance for Bad Loans: KRNY has a sufficient allowance for bad loans (105%).

Low Risk Liabilities: 75% 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 (106%) is appropriate.

Level of Bad Loans: KRNY has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KRNY's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: KRNY's dividend (4%) is low compared to the top 25% of dividend payers in the US market (4.49%).


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 (56.6%), 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?

2.0yrs

Average management tenure


CEO

Craig Montanaro (54yo)

9.25yrs

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 ($USD946.53K) is below average for companies of similar size in the US market ($USD3.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Montanaro
President9.25yrsUS$946.53k0.43% $2.7m
Keith Suchodolski
Executive VP & CFO2yrsUS$1.43m0.077% $499.7k
Eric Heyer
Senior EVP & COO2yrsUS$547.43k0.13% $826.4k
Thomas DeMedici
Executive VP & Chief Credit Officerno dataUS$1.23m0.093% $601.3k
Anthony Bilotta
Executive VP & Chief Banking Officer of Kearny Bank2.08yrsUS$1.86m0.057% $369.5k
Thomas McGurk
Chief Investment Officer5.5yrsno datano data
Timothy Swansson
Executive VP and Chief Technology & Innovation Officer1.5yrsno data0.034% $221.5k
Erika Parisi
Executive VP & Chief Administrative Officer1yrUS$416.97k0.23% $1.5m
Taryn Rockwell
Investor Relations Associateno datano datano data
Kimberly Manfredo
1st VP and Director of HRno datano datano data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: KRNY's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Montanaro
President9.25yrsUS$946.53k0.43% $2.7m
Leopold Montanaro
Director17yrsUS$126.75k0.30% $2.0m
Matthew McClane
Independent Director19.5yrsUS$133.72k0.15% $995.8k
John Regan
Independent Director19.5yrsUS$126.67k0.15% $952.2k
John McGovern
Independent Director19.5yrsUS$199.54k0.32% $2.0m
Joseph Mazza
Independent Director19.5yrsUS$138.49k0.25% $1.6m
John Mazur
Independent Chairman of the Board16.5yrsUS$161.69k0.26% $1.7m
John Hopkins
Independent Director18.5yrsUS$143.33k0.64% $4.1m
Theodore Aanensen
Independent Director19.5yrsUS$140.76k0.19% $1.2m
Raymond Chandonnet
Independent Director4.58yrsUS$117.28k0.078% $502.8k

19.0yrs

Average Tenure

74yo

Average Age

Experienced Board: KRNY's board of directors are seasoned and experienced ( 19 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$645.222m
  • Shares outstanding: 80.65m
  • 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 interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It also provides various loans, such as multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one- to four-family first mortgage loans, and home equity loans and lines of credit; loans to individuals for the construction of one- to four-family residences, or for various renovations or improvements to an existing dwelling; account loans, overdraft lines of credit, vehicle loans, and personal loans; and unsecured personal loans, as well as loans secured by savings accounts and certificates of deposit on deposit. In addition, the company engages in investment activities. As of August 21, 2019, it operated a total of 48 retail branch offices located throughout northern and central New Jersey, and Brooklyn and Staten Island, New York. The company was founded in 1884 and is headquartered in Fairfield, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 00:01
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
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.