NasdaqGS:VLY

Stock Analysis Report

Valley National Bancorp

Executive Summary

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, insurance, and wealth management financial services.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Valley National Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VLY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.2%

VLY

-7.1%

US Banks

-2.0%

US Market


1 Year Return

-37.5%

VLY

-32.9%

US Banks

-15.1%

US Market

Return vs Industry: VLY underperformed the US Banks industry which returned -32.9% over the past year.

Return vs Market: VLY underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

VLYIndustryMarket
7 Day-12.2%-7.1%-2.0%
30 Day-29.6%-30.6%-19.7%
90 Day-44.1%-42.5%-23.2%
1 Year-34.7%-37.5%-30.9%-32.9%-13.4%-15.1%
3 Year-39.0%-46.0%-21.7%-27.5%10.9%3.7%
5 Year-17.7%-33.2%3.5%-8.4%28.4%14.4%

Price Volatility Vs. Market

How volatile is Valley National Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Valley National Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VLY ($6.28) is trading below our estimate of fair value ($14.11)

Significantly Below Fair Value: VLY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VLY is good value based on its PE Ratio (7.1x) compared to the Banks industry average (8.6x).

PE vs Market: VLY is good value based on its PE Ratio (7.1x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: VLY is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Valley National Bancorp forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLY's forecast earnings growth (13.3% per year) is above the savings rate (1.7%).

Earnings vs Market: VLY's earnings (13.3% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: VLY's revenue (6.5% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: VLY's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VLY's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Valley National Bancorp performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLY has high quality earnings.

Growing Profit Margin: VLY's current net profit margins (27.7%) are higher than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: VLY's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: VLY's earnings growth over the past year (19.4%) is below its 5-year average (24.8% per year).

Earnings vs Industry: VLY earnings growth over the past year (19.4%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: VLY's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Valley National Bancorp'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: VLY has a low level of unsold assets or inventory.

Debt Coverage by Assets: VLY's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: VLY has an appropriate level of bad loans (0.31%)


Next Steps

Dividend

What is Valley National Bancorp's current dividend yield, its reliability and sustainability?

7.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VLY's dividend (7.01%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: VLY's dividend (7.01%) is in the top 25% of dividend payers in the US market (5.71%)


Stability and Growth of Payments

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

Growing Dividend: VLY's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50%), VLY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VLY's dividends in 3 years are forecast to be well covered by earnings (46.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ira Robbins (44yo)

2.33s

Tenure

US$3,967,051

Compensation

Mr. Ira D. Robbins, CPA has been the President of Valley National Bank at Valley National Bancorp since January 5, 2017 and serves as its Chief Executive Officer and Chairman of the Board. Mr. Robbins serv ...


CEO Compensation Analysis

Compensation vs Market: Ira's total compensation ($USD3.97M) is below average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ira Robbins
Chairman of the Board2.33yrsUS$3.97m0.040% $1.0m
Michael Hagedorn
Senior EVP & CFO0.67yrUS$1.58mno data
Robert Bardusch
Senior EVP & COO2.17yrsUS$1.51m0.0054% $138.2k
Ronald Janis
Senior EVP3.25yrsUS$1.52m0.013% $327.6k
Alan Eskow
Executive Officer & Senior EVP0.67yrUS$1.85m0.080% $2.0m
Thomas Iadanza
Senior EVP & Chief Banking Officerno dataUS$1.97m0.026% $648.9k
Mitchell Crandell
Executive VP & Chief Accounting Officer9.25yrsno data0.0063% $160.0k
Rick Kraemer
First Senior VP & Investor Relations Officer2.25yrsno datano data
Yvonne Surowiec
Senior EVP & Chief Human Resources Officer2.5yrsno data0.0021% $52.3k
Bernadette Mueller
Executive VP and Corporate Social Responsibility & Senior Community Reinvestment Act Officerno datano data0.023% $586.9k

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: VLY's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ira Robbins
Chairman of the Board2.33yrsUS$3.97m0.040% $1.0m
Andrew Abramson
Lead Independent Director5.42yrsUS$266.79k0.066% $1.7m
Graham Jones
Director23.25yrsUS$176.45k0.20% $5.0m
Jeffrey Wilks
Independent Director8.25yrsUS$192.37k0.11% $2.7m
Jennifer Steans
Independent Director2.25yrsUS$170.53k0.99% $25.1m
Eric Edelstein
Independent Director16.42yrsUS$209.97k0.0093% $235.4k
Michael LaRusso
Independent Director15.33yrsUS$181.98k0.012% $293.6k
Marc Lenner
Independent Director12.33yrsUS$188.57k0.058% $1.5m
Suresh Sani
Independent Director12.33yrsUS$197.23k0.017% $424.1k
Peter Baum
Independent Director8yrsUS$181.52k0.013% $331.9k

12.3yrs

Average Tenure

61yo

Average Age

Experienced Board: VLY's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VLY 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

Valley National Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Valley National Bancorp
  • Ticker: VLY
  • Exchange: NasdaqGS
  • Founded: 1927
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.540b
  • Shares outstanding: 403.75m
  • Website: https://www.valley.com

Number of Employees


Location

  • Valley National Bancorp
  • One Penn Plaza
  • Suite 2930
  • New York
  • New York
  • 10119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980
VNBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
VLYP.PNasdaqGS (Nasdaq Global Select)6.25% PFD SER AUSUSDJun 2015
VLYP.ONasdaqGS (Nasdaq Global Select)5.50% PFD SER BUSUSDJul 2017
VLYB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM NPVBRBRLMay 2019

Biography

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, insurance, and wealth management financial services. The company operates through Commercial Lending, Consumer Lending, and Investment Management segments. Its deposit products include non-interest bearing, savings, NOW, and money market accounts, as well as certificates of deposit. The company offers various loan products comprising residential mortgage loans, automobile loans, secured personal lines of credit, and home equity loans; and floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans. It also invests in securities and interest-bearing deposits with other banks; and offers international banking services, such as standby letters of credit, documentary letters of credit and related products, and other ancillary services, such as foreign exchange transactions, documentary collections, foreign wire transfers, and transaction accounts for non-resident aliens. In addition, the company provides asset management advisory, trust, and asset-based lending support services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as real estate related investments. Further, it offers other banking services comprising automated teller machine, telephone and Internet banking, remote deposit capturing, overdraft, drive-in and night deposit, and safe deposit services. The company operates approximately 200 branches in New Jersey, New York, Florida, and Alabama. Valley National Bancorp was founded in 1927 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 06:11
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.