Kearny Financial Corp. (KRNY) stock analysis

P/E above its 5-year median

Kearny Financial's P/E of 16.0 is above its own 5-year median of 14.4.

P/E above the industry

Kearny Financial's P/E of 16.0 is above the Savings Institutions median of 13.7.

P/S below the industry

Kearny Financial's price-to-sales of 3.35 is below the Savings Institutions median of 3.77.

P/B below the industry

Kearny Financial's price-to-book of 0.80 is below the Savings Institutions median of 1.04.

Trading above fair value

The share price of $9.27 is above our fair value estimate of $8.95.

Margin of safety under 20%

The price is 3.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -0.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -3.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 24.8% over the last twelve months, against a 5-year average of -10.5% a year.

Growing faster than the industry

Revenue grew 12.1% over the last twelve months; the Savings Institutions median is 9.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 4.9% over the last twelve months and averaged 1.8% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.5%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Kearny Financial's return on equity of 4.9% is below the Savings Institutions median of 6.1%.

Earnings shrank over 5 years

Net income shrank 10.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 20.5% over the last twelve months, against a 5-year average of 523%.

Net margin above the industry

Kearny Financial's net margin of 20.5% is above the Savings Institutions median of 20.3%.

Well capitalized

Equity is 9.7% of total assets; 8% or more is a comfortable cushion.

Loans exceed deposits

Loans equal 102% of deposits, so the bank relies on other borrowing.

Thin loan-loss reserve

The allowance for credit losses is 0.8% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 71.8% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 3.6% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Kearny Financial paid dividends worth 4.7% of the share price over the last twelve months.

Yield above Treasuries

The 4.7% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Kearny Financial yields 4.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 75.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.