IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 36.3GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
4.6%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Kearny Financial Corp. (KRNY) receives a "Hold" rating with a composite score of 51.5/100, ranked #916 out of 4446 stocks. Key factor scores: Quality 36/100, Value 49/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
Kearny Financial Corp. (KRNY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Kearny Financial Corp. Do?
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 or renovation of one- to four-family residences, or for the construction of commercial real estate or multi-family residential buildings; overdraft lines of credit; and personal loans. In addition, the company engages in investment activities. As of August 18, 2021, it operated a total of 48 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. Kearny Financial Corp. (KRNY) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Craig L. Montanaro and employs approximately 552 people. With a market capitalization of $482M, KRNY is one of the notable companies in the Financials sector.
Kearny Financial Corp. (KRNY) Stock Rating — Hold (April 2026)
As of April 2026, Kearny Financial Corp. receives a Hold rating with a composite score of 51.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.KRNY ranks #916 out of 4,446 stocks in our coverage universe. Within the Financials sector, Kearny Financial Corp. ranks #280 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KRNY Stock Price and 52-Week Range
Kearny Financial Corp. (KRNY) currently trades at $8.03. The stock lost $0.15 (1.8%) in the most recent trading session. The 52-week high for KRNY is $8.50, which means the stock is currently trading -5.5% from its annual peak. The 52-week low is $5.45, putting the stock 47.5% above its annual trough. Recent trading volume was 173K shares, suggesting relatively thin trading activity.
Is KRNY Overvalued or Undervalued? — Valuation Analysis
Kearny Financial Corp. (KRNY) carries a value factor score of 49/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 14.42x, compared to the Financials sector average of 14.88x — a discount of 3%. The price-to-book ratio stands at 0.67x, versus the sector average of 1.22x. The price-to-sales ratio is 1.77x, compared to 0.90x for the average Financials stock. On an enterprise value basis, KRNY trades at 16.00x EV/EBITDA, versus 3.26x for the sector.
Overall, KRNY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Kearny Financial Corp. Profitability — ROE, Margins, and Quality Score
Kearny Financial Corp. (KRNY) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 4.6%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.5% versus the sector average of 1.2%.
The operating margin is 13.0% (sector: 21.8%). Net profit margin stands at 10.5%, versus 17.7% for the average Financials stock. Revenue growth is running at -3.1% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
KRNY Debt, Balance Sheet, and Financial Health
Kearny Financial Corp. has a debt-to-equity ratio of 906.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Cash and equivalents stand at $19M.
KRNY has a beta of 0.72, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Kearny Financial Corp. is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Kearny Financial Corp. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Kearny Financial Corp. reported revenue of $286M and earnings per share (EPS) of $0.15. Net income for the quarter was $35M. Gross margin was 13.3%. Operating income came in at $37M.
In Q2 2026, Kearny Financial Corp. reported revenue of $81M and earnings per share (EPS) of $0.15. Net income for the quarter was $9M. Revenue grew 85.2% year-over-year compared to Q2 2025. Operating income came in at $12M.
In Q2 2025, Kearny Financial Corp. reported revenue of $44M and earnings per share (EPS) of $0.15. Net income for the quarter was $9M. Gross margin was 87.2%. Operating income came in at $6M.
In Q1 2026, Kearny Financial Corp. reported revenue of $83M and earnings per share (EPS) of $0.15. Net income for the quarter was $10M. Revenue grew -0.9% year-over-year compared to Q1 2025. Operating income came in at $12M.
Over the past 8 quarters, Kearny Financial Corp. has experienced revenue contraction from $329M to $286M. Investors analyzing KRNY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KRNY Dividend Yield and Income Analysis
Kearny Financial Corp. (KRNY) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
KRNY Momentum and Technical Analysis Profile
Kearny Financial Corp. (KRNY) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 51/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
KRNY vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing KRNY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KRNY vs S&P 500 (SPY) comparison to assess how Kearny Financial Corp. stacks up against the broader market across all factor dimensions.
KRNY Next Earnings Date
No upcoming earnings date has been announced for Kearny Financial Corp. (KRNY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KRNY? — Investment Thesis Summary
Kearny Financial Corp. presents a balanced picture with arguments on both sides. The quality score of 36/100 flags below-average profitability. Price momentum is positive at 71/100, suggesting the trend favors buyers. Low volatility (stability score 81/100) reduces downside risk.
In summary, Kearny Financial Corp. (KRNY) earns a Hold rating with a composite score of 51.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KRNY stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
Kearny Financial Corp. (KRNY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Kearny Financial Corp. (KRNY) receives a Hold rating, driven by a mixed financial performance and valuation concerns. While the company exhibits stability and positive momentum, its profitability metrics lag behind sector averages, and its valuation appears stretched, suggesting limited near-term upside. The bank's high debt-to-equity ratio and negative revenue growth further temper enthusiasm, warranting a cautious approach.
The primary takeaway is that KRNY's current valuation does not adequately compensate for its relatively weak profitability and growth prospects within the banking sector. Investors should closely monitor the company's ability to improve its operating efficiency and revenue generation to justify its premium valuation. Until these improvements materialize, a Hold rating is warranted.
Business Strategy & Overview
Kearny Financial Corp., through its subsidiary Kearny Bank, operates as a community-focused bank, primarily serving northern and central New Jersey and Brooklyn and Staten Island, New York. The bank's core business revolves around attracting deposits and originating loans, typical of a traditional banking model. Its deposit products include checking, savings, and money market accounts, while its loan portfolio encompasses multi-family and non-residential real estate mortgages, commercial loans, residential mortgages, and home equity products. This diversified loan portfolio aims to mitigate risk by spreading exposure across various asset classes.
Kearny's strategic positioning emphasizes relationship banking and local market expertise. By focusing on smaller businesses and individual customers within its geographic footprint, the bank aims to build long-term relationships and provide personalized service. This approach differentiates it from larger, national banks that may lack the same level of local market knowledge and customer intimacy. The company's branch network, consisting of 48 offices, serves as a crucial distribution channel for both deposit gathering and loan origination.
The bank's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits. Fee income, derived from services such as account maintenance and transaction processing, also contributes to the top line. Kearny's investment activities further supplement its revenue stream. The bank's ability to effectively manage its interest rate spread and control operating expenses is critical to its profitability.
In the current macroeconomic environment, Kearny faces challenges and opportunities. Rising interest rates can boost net interest income but also increase the risk of loan defaults. The competitive landscape is intense, with numerous banks and credit unions vying for customers in the same geographic markets. Furthermore, the increasing adoption of digital banking technologies requires Kearny to invest in its online and mobile platforms to remain competitive and meet evolving customer expectations. The bank's success hinges on its ability to adapt to these changing market dynamics and maintain its competitive edge.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-3.1%
Sector: 9.4%
-133% VS SCTR
Economic Moat Analysis
Kearny Financial Corp.'s economic moat is likely Narrow. While the bank benefits from certain advantages, they are not substantial enough to create a wide and sustainable competitive edge. The primary source of its moat stems from its established presence and local market knowledge within its operating regions of northern and central New Jersey and parts of New York.
The bank's focus on relationship banking and personalized service contributes to customer loyalty, creating some degree of switching costs. Customers who value the convenience of local branches and the familiarity of bank personnel may be less inclined to switch to larger, national banks or online-only institutions. However, these switching costs are not insurmountable, as customers can easily transfer their accounts and loans to competitors offering better rates or services.
Kearny's intangible assets, such as its brand reputation and customer relationships, also provide a modest competitive advantage. A positive brand image can attract new customers and retain existing ones. However, brand recognition is primarily limited to its geographic footprint and may not extend beyond its core markets. Furthermore, the banking industry is highly competitive, and customers are often price-sensitive, making it challenging to maintain a significant brand premium.
The bank does not possess significant cost advantages or benefit from efficient scale. Its operating expenses are comparable to those of other community banks, and it does not have the scale to achieve substantial cost efficiencies. While Kearny's local market expertise provides some advantage in assessing credit risk and managing loan portfolios, this advantage is not unique and can be replicated by other banks with similar local knowledge.
Overall, Kearny's narrow moat is primarily based on its local market presence, relationship banking approach, and modest brand recognition. These advantages provide some degree of competitive protection, but they are not strong enough to generate consistently superior returns or prevent competitors from encroaching on its market share. The bank's ability to strengthen its competitive position will depend on its ability to enhance its customer relationships, improve its operating efficiency, and adapt to the evolving banking landscape.
Financial Health & Profitability
Kearny Financial Corp.'s financial health presents a mixed picture. The company's revenue has been volatile, with a decline of 3.1% year-over-year, contrasting sharply with the sector's average revenue growth of 9.3%. This revenue contraction raises concerns about the bank's ability to generate sustainable growth. Examining the quarterly financial history reveals inconsistent revenue performance, with fluctuations from quarter to quarter. The most recent quarter (Q2 FY2026) shows revenue of $80.65 million, similar to previous periods, but the overall trend suggests a lack of consistent top-line expansion.
Profitability metrics also lag behind sector averages. The company's ROE of 4.6% is significantly lower than the sector's 8.5%, indicating less efficient use of equity. Similarly, the operating margin of 13.0% and net margin of 10.5% are below the sector averages of 22.0% and 17.8%, respectively. These lower margins suggest that Kearny is less profitable than its peers, potentially due to higher operating costs or lower pricing power. The quarterly financial history reveals some improvement in operating margins in recent quarters, but the overall profitability remains a concern.
The company's balance sheet exhibits a high debt-to-equity ratio of 906.00, significantly exceeding the sector average of 115.00. This high leverage increases the bank's financial risk and vulnerability to adverse economic conditions. While the current ratio of 1.11 indicates sufficient liquidity to meet short-term obligations, the high debt level warrants close monitoring. The absence of free cash flow data further complicates the assessment of the company's financial flexibility.
The quarterly financial history reveals a significant net loss in FY2024, driven by a negative operating margin of -24.6%. This loss highlights the potential for volatility in the company's earnings and the impact of adverse events on its financial performance. While the company has since returned to profitability, the memory of the FY2024 loss should give investors pause. Overall, Kearny's financial health is characterized by weak revenue growth, below-average profitability, and high leverage, warranting a cautious approach.
Valuation Assessment
Kearny Financial Corp.'s valuation appears stretched relative to its peers and historical performance. The company's P/E ratio of 47.5x is significantly higher than the sector average of 15.5x, suggesting that investors are paying a premium for its earnings. This premium is difficult to justify given the company's relatively weak profitability and revenue growth. The EV/EBITDA multiple of 9.5x is also higher than the sector average of 3.5x, further indicating an overvaluation.
The high P/E ratio may reflect investor optimism about the company's future growth prospects, but the current financial performance does not support this optimism. The negative revenue growth and below-average profitability suggest that the company's earnings may not be sustainable at current levels. Furthermore, the high debt-to-equity ratio increases the risk of financial distress, which could negatively impact the company's valuation.
A discounted cash flow (DCF) analysis would be helpful in determining the intrinsic value of the stock, but the absence of free cash flow data makes this analysis impossible. Without free cash flow data, it is difficult to assess the company's ability to generate future cash flows and determine a fair value for the stock. However, based on the available data, it appears that the stock is overvalued.
The company's momentum score of 69/100 suggests that the stock has been performing well recently, but this momentum may not be sustainable. The high valuation and weak financial performance could lead to a correction in the stock price. Investors should be cautious about chasing momentum in this case and focus on the underlying fundamentals of the business.
Overall, Kearny Financial Corp.'s valuation appears expensive relative to its growth, profitability, and sector peers. The high P/E and EV/EBITDA multiples suggest that the stock is overvalued, and the absence of free cash flow data makes it difficult to assess its intrinsic value. Investors should exercise caution and consider the risks associated with investing in an overvalued stock.
Risk & Uncertainty
Kearny Financial Corp. faces several specific risks that could negatively impact its business and financial performance. One significant risk is interest rate sensitivity. As a traditional bank, Kearny's profitability is heavily influenced by the spread between the interest it earns on loans and the interest it pays on deposits. A rapid increase in interest rates could squeeze this spread, reducing net interest income and negatively impacting earnings. Furthermore, rising interest rates could increase the risk of loan defaults, as borrowers may struggle to repay their debts.
Another risk is competition. The banking industry is highly competitive, with numerous banks and credit unions vying for customers in the same geographic markets. Larger, national banks may have greater resources and economies of scale, allowing them to offer more competitive rates and services. Online-only banks also pose a threat, as they can offer lower fees and greater convenience. Kearny must continuously innovate and differentiate itself to maintain its competitive edge.
Credit risk is also a significant concern. Kearny's loan portfolio includes various types of loans, including multi-family and non-residential real estate mortgages, commercial loans, and residential mortgages. These loans are subject to credit risk, which is the risk that borrowers will default on their obligations. An economic downturn or a decline in real estate values could increase the risk of loan defaults, leading to losses for the bank.
Regulatory risk is another factor to consider. The banking industry is heavily regulated, and changes in regulations could negatively impact Kearny's business. For example, changes in capital requirements or lending regulations could increase the bank's costs or restrict its ability to originate loans. Furthermore, the bank is subject to compliance risk, which is the risk of violating regulations and incurring penalties.
Finally, the company's high debt-to-equity ratio increases its financial risk. High leverage makes the bank more vulnerable to adverse economic conditions and increases the risk of financial distress. If the bank experiences a decline in earnings or an increase in loan losses, it may struggle to meet its debt obligations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWKearny's strong presence in the New Jersey and New York markets provides a stable deposit base and lending opportunities, leading to consistent profitability.
BULL VIEWThe bank's focus on relationship banking and personalized service fosters customer loyalty, creating a sustainable competitive advantage and driving long-term growth.
BULL VIEWKearny's recent investments in digital banking technologies will enhance its customer experience and attract new customers, boosting revenue and market share.
The Bear Case
BEAR VIEWKearny's high debt-to-equity ratio exposes it to significant financial risk, making it vulnerable to economic downturns and interest rate hikes.
BEAR VIEWThe bank's below-average profitability and negative revenue growth indicate operational inefficiencies and a lack of competitive advantage, hindering its ability to generate sustainable returns.
BEAR VIEWKearny's premium valuation is not justified by its financial performance, making it susceptible to a correction as investors re-evaluate its growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score KRNY and 4,400+ other equities.
Kearny Financial Corp. exhibits a 110% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.5%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
—
Sector: 0.0%
Operating Margin
Core business profitability
13.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
10.5%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
