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Valley National Bancorp

Market Cap

US$5.8b

Last Updated

2021/04/18 23:06 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VLY's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

VLY

0.04%

US Banks

1.3%

US Market


1 Year Return

91.6%

VLY

70.1%

US Banks

53.8%

US Market

Return vs Industry: VLY exceeded the US Banks industry which returned 70.1% over the past year.

Return vs Market: VLY exceeded the US Market which returned 53.8% over the past year.


Shareholder returns

VLYIndustryMarket
7 Day0.9%0.04%1.3%
30 Day-3.1%0.7%5.1%
90 Day30.7%16.6%8.9%
1 Year101.2%91.6%75.7%70.1%56.6%53.8%
3 Year31.4%15.0%25.8%14.9%64.4%53.6%
5 Year70.9%38.2%96.5%71.5%120.4%95.7%

Long-Term 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?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VLY ($13.93) is trading below our estimate of fair value ($14.41)

Significantly Below Fair Value: VLY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VLY is poor value based on its PE Ratio (14.9x) compared to the US Banks industry average (13.3x).

PE vs Market: VLY is good value based on its PE Ratio (14.9x) compared to the US market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: VLY is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: VLY is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.1x).


Future Growth

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

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLY's forecast earnings growth (9.9% per year) is above the savings rate (2%).

Earnings vs Market: VLY's earnings (9.9% per year) are forecast to grow slower than the US market (17.9% per year).

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

Revenue vs Market: VLY's revenue (7.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: VLY's revenue (7.3% 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 (10.2%).


Past Performance

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

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLY has high quality earnings.

Growing Profit Margin: VLY's current net profit margins (32.5%) are higher than last year (27.8%).


Past Earnings Growth Analysis

Earnings Trend: VLY's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: VLY's earnings growth over the past year (27.3%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: VLY earnings growth over the past year (27.3%) exceeded the Banks industry 3.6%.


Return on Equity

High ROE: VLY's Return on Equity (8.5%) is considered low.


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


Financial Institutions Analysis

Asset Level: VLY's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: VLY has a sufficient allowance for bad loans (184%).

Low Risk Liabilities: 88% of VLY's liabilities are made up of primarily low risk sources of funding.

Loan Level: VLY has an appropriate level of Loans to Assets ratio (78%).

Low Risk Deposits: VLY's Loans to Deposits ratio (100%) is appropriate.

Level of Bad Loans: VLY has an appropriate level of bad loans (0.6%).


Dividend

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

3.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VLY's dividend (3.16%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: VLY's dividend (3.16%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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 reasonably low payout ratio (47%), VLY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VLY's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Ira Robbins (45 yo)

3.33yrs

Tenure

US$4,879,048

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Ira's total compensation ($USD4.88M) is about average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

Experienced Management: VLY's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: VLY's board of directors are considered experienced (9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$5.813b
  • Shares outstanding: 405.61m
  • 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


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 Comm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 23:06
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.