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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: 51.2GRADE C+
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
6.4%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.19%
Trailing Yield
$4.19
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
59%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, VALLEY NATIONAL BANCORP (VLY) receives a "Hold" rating with a composite score of 54.0/100, ranked #833 out of 4446 stocks. Key factor scores: Quality 51/100, Value 73/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
VALLEY NATIONAL BANCORP (VLY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does VALLEY NATIONAL BANCORP Do?
Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products. It operates through Commercial Lending, Consumer Lending, and Investment Management segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, foreign wire transfers services, and transaction accounts for non-resident aliens. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts and custom -tailored investment strategies for various retirement plans. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory 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 owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; and overdraft, drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. As of December 31,2021, it operated 232 branch offices in New Jersey, New York, Florida, and Alabama. The company was incorporated in 1927 and is headquartered in New York, New York. VALLEY NATIONAL BANCORP (VLY) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Ira D. Robbins and employs approximately 3,830 people, headquartered in Wayne, New York. With a market capitalization of $6.9B, VLY is one of the notable companies in the Financials sector.
VALLEY NATIONAL BANCORP (VLY) Stock Rating — Hold (April 2026)
As of April 2026, VALLEY NATIONAL BANCORP receives a Hold rating with a composite score of 54.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.VLY ranks #833 out of 4,446 stocks in our coverage universe. Within the Financials sector, VALLEY NATIONAL BANCORP ranks #250 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%).
VLY Stock Price and 52-Week Range
VALLEY NATIONAL BANCORP (VLY) currently trades at $13.25. The 52-week high for VLY is $13.87, which means the stock is currently trading -4.5% from its annual peak. The 52-week low is $7.48, putting the stock 77.1% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is VLY Overvalued or Undervalued? — Valuation Analysis
VALLEY NATIONAL BANCORP (VLY) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 13.98x, compared to the Financials sector average of 14.88x — a discount of 6%. The price-to-book ratio stands at 0.90x, versus the sector average of 1.22x. The price-to-sales ratio is 2.13x, compared to 0.90x for the average Financials stock. On an enterprise value basis, VLY trades at 10.78x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, VALLEY NATIONAL BANCORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
VALLEY NATIONAL BANCORP Profitability — ROE, Margins, and Quality Score
VALLEY NATIONAL BANCORP (VLY) earns a quality factor score of 51/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 6.4%, 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 0.8% versus the sector average of 1.2%.
On a margin basis, VALLEY NATIONAL BANCORP reports gross margins of 0.0%. The operating margin is 19.8% (sector: 21.8%). Net profit margin stands at 15.3%, versus 17.7% for the average Financials stock. Revenue growth is running at -0.8% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
VLY Debt, Balance Sheet, and Financial Health
VALLEY NATIONAL BANCORP has a debt-to-equity ratio of 721.0%, 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 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $3.01B. Cash and equivalents stand at $376M.
VLY has a beta of 1.02, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for VALLEY NATIONAL BANCORP is 75/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
VALLEY NATIONAL BANCORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, VALLEY NATIONAL BANCORP reported revenue of $3.28B and earnings per share (EPS) of $1.02. Net income for the quarter was $500M. Gross margin was 0.0%. Operating income came in at $649M.
In FY 2025, VALLEY NATIONAL BANCORP reported revenue of $3.23B and earnings per share (EPS) of $1.02. Net income for the quarter was $598M. Revenue grew -3.7% year-over-year compared to FY 2024. Operating income came in at $744M.
In Q3 2025, VALLEY NATIONAL BANCORP reported revenue of $827M and earnings per share (EPS) of $0.28. Net income for the quarter was $163M. Revenue grew -3.9% year-over-year compared to Q3 2024. Operating income came in at $210M.
In Q2 2025, VALLEY NATIONAL BANCORP reported revenue of $805M and earnings per share (EPS) of $0.23. Net income for the quarter was $133M. Revenue grew -3.4% year-over-year compared to Q2 2024. Operating income came in at $173M.
Over the past 8 quarters, VALLEY NATIONAL BANCORP has demonstrated a growth trajectory, with revenue expanding from $833M to $3.28B. Investors analyzing VLY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
VLY Dividend Yield and Income Analysis
VALLEY NATIONAL BANCORP (VLY) currently pays a dividend yield of 4.2%. At this yield, a $10,000 investment in VLY stock would generate approximately $$419.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning VLY offers above-average income for its sector. With a net margin of 15.3%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
VLY Momentum and Technical Analysis Profile
VALLEY NATIONAL BANCORP (VLY) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
VLY vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing VLY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full VLY vs S&P 500 (SPY) comparison to assess how VALLEY NATIONAL BANCORP stacks up against the broader market across all factor dimensions.
VLY Next Earnings Date
No upcoming earnings date has been announced for VALLEY NATIONAL BANCORP (VLY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy VLY? — Investment Thesis Summary
VALLEY NATIONAL BANCORP presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 75/100) reduces downside risk.
In summary, VALLEY NATIONAL BANCORP (VLY) earns a Hold rating with a composite score of 54.0/100 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 VLY stock.
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Institutional Research Dossier
VALLEY NATIONAL BANCORP (VLY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Valley National Bancorp (VLY) receives a Hold rating, justified by a mixed financial profile. While the bank exhibits attractive valuation metrics relative to its peers, particularly in P/E and EV/EBITDA, its profitability metrics such as ROE and margins lag the sector average, and revenue growth is negative. The company's high debt-to-equity ratio also raises concerns, contributing to a balanced, but not overwhelmingly positive, outlook.
The primary takeaway is that VLY presents a value proposition based on its current earnings and asset valuation, but potential investors should carefully weigh the risks associated with its lower profitability and higher leverage compared to its financial sector counterparts. The bank's future performance hinges on its ability to improve operational efficiency and manage its debt effectively.
Business Strategy & Overview
Valley National Bancorp operates as a regional bank, providing a range of commercial and retail banking services across New Jersey, New York, Florida, and Alabama. Its revenue streams are diversified across commercial lending, consumer lending, and investment management, reflecting a strategy to capture different segments of the banking market. The bank's focus on both traditional banking services and wealth management aims to create a stable and recurring revenue base.
Strategically, Valley National appears to be pursuing growth through both organic expansion and acquisitions, as evidenced by its increasing branch network and service offerings. The bank's investment in digital banking services, including online and mobile platforms, indicates an effort to adapt to changing consumer preferences and enhance customer experience. This digital transformation is crucial for maintaining competitiveness and attracting a younger demographic of customers.
The company's product pipeline likely involves the continuous refinement of its loan products and investment services to meet the evolving needs of its customer base. This includes tailoring loan offerings to specific industries and developing customized investment strategies for retirement plans and other financial goals. The bank's international banking services, while likely a smaller portion of its overall business, provide an additional avenue for revenue generation and diversification.
In the broader industry context, Valley National faces competition from both larger national banks and smaller regional players. Its ability to differentiate itself through personalized service, local market expertise, and competitive pricing will be key to its long-term success. The bank must also navigate the challenges of a changing regulatory environment and evolving interest rate landscape, which can significantly impact its profitability and growth prospects.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.8%
Sector: 9.4%
-108% VS SCTR
Economic Moat Analysis
Valley National Bancorp's economic moat can be classified as Narrow. The bank possesses some elements of a moat, but they are not strong enough to create a wide and sustainable competitive advantage. The primary source of its narrow moat stems from its established presence in its core markets of New Jersey, New York, Florida, and Alabama, which provides a degree of customer loyalty and brand recognition.
Switching costs in the banking industry are moderate. While customers may develop relationships with their bankers and appreciate the convenience of local branches, these factors are not insurmountable barriers to switching to a competitor offering better rates or services. The rise of online banking and fintech companies has further reduced switching costs, as customers can easily access and manage their accounts from anywhere.
The bank's intangible assets, such as its brand reputation and customer relationships, contribute to its narrow moat. However, these assets are not unique or proprietary enough to create a significant competitive advantage. Other regional banks have similar brand recognition and customer relationships in their respective markets.
Valley National does not appear to possess significant cost advantages or efficient scale. Its operating margin of 19.8% is below the sector average of 22.0%, suggesting that it may not be as efficient as its peers in managing its expenses. The bank's size and scale are also not large enough to create a significant cost advantage over its competitors.
Overall, Valley National's narrow moat provides some protection against competition, but it is not a wide or sustainable moat. The bank's competitive advantage is primarily based on its established presence in its core markets and its customer relationships, but these factors are not strong enough to prevent competitors from encroaching on its market share.
Financial Health & Profitability
Valley National Bancorp's financial health presents a mixed picture. The company's revenue has shown some volatility, with a slight decrease of -0.8% year-over-year, contrasting with the sector's average revenue growth of 9.3%. This suggests potential challenges in expanding its business or maintaining its market share. The quarterly revenue trend shows fluctuations, with Q3 FY2025 revenue slightly higher than previous quarters, but still indicating inconsistency.
Profitability metrics also raise concerns. The company's ROE of 6.4% is below the sector average of 8.5%, indicating lower efficiency in generating profits from shareholders' equity. Similarly, the net margin of 15.3% is lower than the sector average of 17.8%, suggesting potential inefficiencies in cost management or pricing strategies. The operating margin, while showing improvement in recent quarters, still lags the sector average.
The balance sheet reveals a high level of leverage. The debt-to-equity ratio of 721.00 is significantly higher than the sector average of 115.00, indicating a greater reliance on debt financing. This high leverage could increase the company's vulnerability to interest rate fluctuations and economic downturns. However, the current ratio of 1.14 suggests that the company has sufficient liquid assets to cover its short-term liabilities.
Free cash flow is negative at $-184.33M, which is a concern. While banks often have fluctuating cash flows due to lending activities, consistent negative free cash flow could indicate underlying issues with profitability or capital management. The absence of free cash flow data in the quarterly history makes it difficult to assess the trend and potential causes of this negative figure.
Overall, Valley National's financial health is characterized by lower profitability, high leverage, and negative free cash flow. While the company has shown some improvement in operating margin in recent quarters, it needs to address its underlying financial challenges to improve its long-term sustainability and growth prospects.
Valuation Assessment
Valley National Bancorp's valuation presents a seemingly attractive picture based on certain multiples. The company's P/E ratio of 11.5x is lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.2x is significantly lower than the sector average of 3.5x, further indicating potential undervaluation based on its enterprise value and earnings before interest, taxes, depreciation, and amortization.
However, these seemingly attractive multiples must be considered in the context of the company's financial performance and growth prospects. The lower P/E and EV/EBITDA ratios could reflect investor concerns about the company's lower profitability, negative revenue growth, and high leverage. A lower valuation may be warranted if investors anticipate slower growth or higher risk compared to its peers.
The company's negative free cash flow also raises questions about its true valuation. While earnings-based multiples may appear attractive, the lack of free cash flow suggests that the company may be struggling to generate cash from its operations. This could indicate potential issues with capital expenditures, working capital management, or underlying profitability.
Compared to its historical valuation, it's difficult to assess whether the current multiples are cheap or expensive without historical data. However, the recent fluctuations in revenue and net income suggest that the company's valuation may be sensitive to changes in its financial performance. Any further deterioration in profitability or revenue growth could lead to a further decline in its valuation.
Overall, Valley National's valuation appears to be a mixed bag. While the P/E and EV/EBITDA ratios suggest potential undervaluation, the company's lower profitability, negative revenue growth, high leverage, and negative free cash flow warrant caution. Investors should carefully consider these factors before making an investment decision.
Risk & Uncertainty
Valley National Bancorp faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its high debt-to-equity ratio. This high leverage increases the company's vulnerability to interest rate fluctuations and economic downturns. Rising interest rates could increase the company's borrowing costs, reducing its profitability and potentially leading to financial distress. An economic downturn could reduce loan demand and increase loan defaults, further straining its financial resources.
Another risk is the company's exposure to the real estate market. A significant portion of its loan portfolio is comprised of commercial real estate loans, which are sensitive to changes in property values and occupancy rates. A decline in the real estate market could lead to increased loan defaults and losses, negatively impacting the company's earnings and capital position.
Competition from larger national banks and smaller regional players also poses a risk. The banking industry is highly competitive, and Valley National faces pressure to maintain its market share and attract new customers. Larger national banks have greater resources and brand recognition, while smaller regional players may offer more personalized service or competitive pricing. The rise of fintech companies also presents a competitive threat, as these companies offer innovative financial products and services that could disrupt the traditional banking model.
Regulatory changes and compliance costs also represent a risk. The banking industry is heavily regulated, and Valley National must comply with a wide range of laws and regulations. Changes in these regulations could increase the company's compliance costs and potentially restrict its business activities. Failure to comply with regulations could result in fines, penalties, and reputational damage.
Bulls Say / Bears Say
The Bull Case
BULL VIEWValley National's low P/E and EV/EBITDA ratios indicate it is undervalued, offering a potential buying opportunity for value investors.
BULL VIEWThe bank's strategic focus on expanding its branch network and digital banking services positions it for future growth in key markets.
The Bear Case
BEAR VIEWValley National's high debt-to-equity ratio makes it vulnerable to interest rate hikes and economic downturns, increasing the risk of financial distress.
BEAR VIEWThe company's negative revenue growth and lower profitability metrics compared to the sector suggest it is underperforming its peers and may struggle to generate sustainable returns.
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 VLY and 4,400+ other equities.
VALLEY NATIONAL BANCORP exhibits a 84% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
19.8%
Sector: 21.8%
Net Margin
Bottom-line profitability
15.3%
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.
Sector Avg Yield2.48%
Yield Delta+69%
Income Projection audit
A $10,000 investment would generate approximately $419 annually in dividends at the current trailing rate.
