NasdaqGS:VLYP.O

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

Fundamentals

Flawless balance sheet, good value 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


Market Performance


7 Day Return

-0.04%

VLYP.O

4.1%

US Banks

1.0%

US Market


1 Year Return

3.8%

VLYP.O

7.2%

US Banks

8.0%

US Market

Return vs Industry: VLYP.O underperformed the US Banks industry which returned 7.2% over the past year.

Return vs Market: VLYP.O underperformed the US Market which returned 8% over the past year.


Shareholder returns

VLYP.OIndustryMarket
7 Day-0.04%4.1%1.0%
30 Day-1.4%2.8%-0.07%
90 Day-1.2%2.9%-1.0%
1 Year9.7%3.8%10.3%7.2%10.4%8.0%
3 Yearn/a53.9%43.3%46.2%36.7%
5 Yearn/a71.9%53.1%64.3%46.2%

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

No news available

Valuation

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

11.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VLYP.O ($25.44) is trading above our estimate of fair value ($23.45)

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


Price To Earnings Ratio

PE vs Industry: VLYP.O is good value based on its PE Ratio (11.9x) compared to the Banks industry average (12.6x).

PE vs Market: VLYP.O is good value based on its PE Ratio (11.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: VLYP.O is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: VLYP.O is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Valley National Bancorp forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLYP.O's forecast earnings growth (15.6% per year) is above the savings rate (2.7%).

Earnings vs Market: VLYP.O's earnings (15.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: VLYP.O's revenue (12.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: VLYP.O's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VLYP.O's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

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

20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VLYP.O's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: VLYP.O's earnings growth over the past year (92.4%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: VLYP.O earnings growth over the past year (92.4%) exceeded the Banks industry 30.1%.


Return on Equity

High ROE: VLYP.O's Return on Equity (9.6%) is considered low.


Return on Assets

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


Return on Capital Employed

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


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: VLYP.O has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: VLYP.O has an appropriate level of bad loans (0.37%)


Next Steps

Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VLYP.O's dividend (3.78%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: VLYP.O's dividend (3.78%) is in the top 25% of dividend payers in the US market (3.68%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), VLYP.O's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VLYP.O's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

What is the CEO of Valley National Bancorp's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Ira Robbins (44yo)

1.8yrs

Tenure

US$3,184,919

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. Mr. Robbins serves as Chairman, President  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ira's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: VLYP.O's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

11.8yrs

Average Tenure

64yo

Average Age

Experienced Board: VLYP.O's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Alan Eskow (70yo)

    Senior Executive VP & Senior Advisor

    • Tenure: 0.2yrs
    • Compensation: US$1.65m
  • Ronald Janis (70yo)

    Senior EVP

    • Tenure: 2.8yrs
    • Compensation: US$1.50m
  • Tom Iadanza (60yo)

    Senior EVP & Chief Banking Officer

    • Tenure: 0yrs
    • Compensation: US$1.81m
  • Mike Hagedorn (52yo)

    Senior EVP & CFO

    • Tenure: 0.2yrs
  • Ira Robbins (44yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.18m
  • Bernadette Mueller (60yo)

    Executive VP and Corporate Social Responsibility & Senior Community Reinvestment Act Officer

    • Tenure: 0yrs
  • Mitchell Crandell (48yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 8.8yrs
  • Bob Bardusch (53yo)

    Senior EVP & COO

    • Tenure: 1.7yrs
    • Compensation: US$1.18m
  • Yvonne Surowiec (58yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2yrs
  • Rick Kraemer

    First Senior VP & Investor Relations Officer

    • Tenure: 1.8yrs

Board Members

  • Gerry Lipkin (78yo)

    Chairman of the Board

    • Tenure: 29.6yrs
    • Compensation: US$603.48k
  • Andrew Abramson (65yo)

    Lead Director

    • Tenure: 4.9yrs
    • Compensation: US$253.64k
  • Graham Jones (74yo)

    Director

    • Tenure: 22.8yrs
    • Compensation: US$195.12k
  • Jeffrey Wilks (59yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$181.89k
  • Eric Edelstein (70yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$206.14k
  • Michael LaRusso (73yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$187.39k
  • Ira Robbins (44yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.18m
  • Marc Lenner (53yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$181.89k
  • Suresh Sani (54yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$193.64k
  • Peter Baum (63yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$194.14k

Company Information

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


Key Information

  • Name: Valley National Bancorp
  • Ticker: VLYP.O
  • Exchange: NasdaqGS
  • Founded: 1927
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.866b
  • Shares outstanding: 331.81m
  • 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 Comm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:53
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.