Kearny Financial Corp. (KRNY)
Valuation Overview•Is Kearny Financial Corp. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
KRNY demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-9.9% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 26.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $45.7M | +9.5% | -9.9% | -1.9% | +5.7% | |
| EBITDA | $12.1M | — | -28.7% | — | — | |
| Net Income | $7.2M | +130.1% | -27.2% | — | +16.6% | |
| EPS (Diluted) | $0.11 | +130.2% | -23.8% | -5.3% | +21.5% | |
| Free Cash Flow | $13.6M | -49.8% | -35.1% | +9.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 99.0% | 97.5% | 99.4% | 97.5% |
| Operating Margin | 26.6% | -2.7% | 15.4% | 21.5% |
| Net Margin | 20.4% | -7.3% | 8.2% | 13.8% |
| FCF Margin | 20.8% | 27.5% | 30.7% | 27.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.17 | $0.15 | -9.1% | ||
| Q2'26 | $0.15 | $0.15 | +0.0% | ||
| Q1'26 | $0.16 | $0.15 | -6.3% | ||
| Q4'25 | $0.15 | $0.15 | +0.0% | ||
| Q3'25 | $0.13 | $0.11 | -15.4% | ||
| Q2'25 | $0.11 | $0.11 | +0.0% | ||
| Q1'25 | $0.12 | $0.10 | -16.7% | ||
| Q4'24 | $0.09 | $0.10 | +11.1% |
Total return is +49.5% (1Y), outperforming the benchmark by +33.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +31.6% | +19.2% | — |
| 1Y | +49.5% | +33.8% | +6.7% |
| 3YCAGR | +15.8% | -4.6% | +19.2% |
| 5YCAGR | -1.2% | -11.9% | +18.0% |
| 10YCAGR | -0.6% | -14.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Kearny Financial Corp. (KRNY) valuation, health, and returns.
Based on peer relative multiples, Kearny Financial Corp. appears Slightly expensive versus peers compared to industry peers.
Kearny Financial Corp. has multiple valuation anchors: Peer Relative Fair Value: $8.22 | Wall Street Analyst Target: $10.75 (implying +15.1% upside). A convergence of these signals offers higher conviction.
Kearny Financial Corp. displays fair financial health with a composite quality score of 55/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 1.1%.
Kearny Financial Corp. pays a 4.7% dividend yield, covered by a 106% payout ratio with 0 years of growth, supplemented by a 0.1% buyback yield.
Kearny Financial Corp.'s current growth trajectory is Accelerating. The company achieved +9.5% 1Y revenue growth and +130.2% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.9%.
Wall Street consensus is Hold based on 5 analysts, beating EPS expectations in 25% of recent quarters with a -7-quarter streak. The consensus price target represents a +15.1% change from current levels.
Investment risks for Kearny Financial Corp. include: -15.0% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.