Kearny Financial Corp.
$7.98
-2.8%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 19.0).
Valuation inputs: P/E 19.0, earnings yield +5.3%, momentum -2.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +3.5%, ROIC +1.7%).
Profitability stack: net margin +7.6%, ROE +3.5%, ROIC +1.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +90.4%, momentum -2.8%, net margin +7.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Kearny Financial Corp. Market vs Earnings Trajectory
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Kearny Financial Corp. Fair Value Envelope
Kearny Financial Corp. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Kearny Financial Corp. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Kearny Financial Corp. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Kearny Financial Corp. Street Expectations Map
Wall Street analysts project that KRNY stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 9.50, with estimates ranging from a low of 9.50 to a high of 9.50.
The consensus 1-year price target stands at 9.50, with estimates ranging from a low of 9.50 to a high of 9.50.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Kearny Financial Corp. Insider Positioning
During the last 12 months, insiders have purchased $153K and sold $232K worth of KRNY shares, resulting in $79K of net selling activity.
3 Months
0
0.00
900
6.83K
-7K
-$7K
3-6 Months
0
0.00
3.9K
29.84K
-30K
-$30K
6-9 Months
12.9K
84.86K
0
0.00
+85K
+$85K
9-12 Months
10.4K
68.03K
33.3K
195.68K
-128K
-$128K
Top Buyers
Montanaro Leopold W
Director
$66K
Suchodolski Keith
Officer: Sevp And Coo
$51K
Byrnes Sean
Officer: Evp And Cfo
$19K
Wong-Zaza Melvina
Director
$17K
Top Sellers
Joyce Patrick M
Officer: Evp And Clo
$62K
Montanaro Craig
Director, Officer: President And Ceo
$62K
Bilotta Anthony V Jr
Officer: Evp And Chief Banking Officer
$21K
Suchodolski Keith
Officer: Sevp And Coo
$18K
Byrnes Sean
Officer: Evp And Cfo
$17K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $79K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 4 buyers. More insiders selling than buying suggests cautious or negative sentiment.
krny Dividend History
Learning Layer
Related Guides
Build conviction on KRNY by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.