📊 KRNY Key Takeaways
Is Kearny Financial Corp. (KRNY) a Good Investment?
While Kearny Financial demonstrates exceptional top-line growth of 140.5% YoY, this masks critical operational inefficiencies reflected in anemic returns on equity (3.8%) and assets (0.4%), alongside a dangerously low interest coverage ratio of 0.3x indicating severe difficulty servicing debt obligations. The strong growth appears unsustainable given the company's inability to generate adequate profitability relative to its $7.6B asset base.
Kearny shows a sharp rebound in revenue and earnings, but profitability remains weak with low ROA/ROE and very thin interest coverage, implying margin pressure from funding costs. Capitalization looks adequate relative to assets and free cash flow is positive, yet sustained improvement hinges on stabilizing net interest margin and operating efficiency.
Kearny Financial Corp. Key Strengths (KRNY)
- Exceptional revenue growth of 140.5% YoY with matching 130.1% net income growth
- Clean balance sheet with zero long-term debt and healthy equity base of $763M
- Positive free cash flow generation of $20.4M with reasonable operating and net margins (15% and 12%)
- Strong YoY rebound in revenue and EPS
- Adequate capitalization relative to assets (~10% equity/assets)
- Positive free cash flow with modest capex needs
KRNY Stock Risks: Kearny Financial Corp. Investment Risks
- Interest coverage ratio of 0.3x is critically low, indicating severe difficulty covering interest expenses with operating income
- ROE of 3.8% and ROA of 0.4% are exceptionally weak for a financial institution, suggesting capital is not deployed efficiently
- Minimal insider activity (only 1 Form 4 filing in 90 days) may signal lack of management confidence
- Very low interest coverage (0.2x) signals earnings sensitivity to rates
- Subpar returns (ROA 0.2%, ROE 2.5%) indicate weak core profitability
- Margin pressure from higher funding costs could erode earnings
Key Metrics to Watch
- Interest coverage ratio trend - must improve significantly above 1.5x to indicate operational viability
- Return on Equity and Return on Assets - need sustained improvement toward 8-10% and 0.8-1.0% respectively for financial institution health
- Asset quality metrics and loan loss provisions - understand if growth is driven by higher-risk lending
- Net interest margin (NIM)
- ROA trend
Kearny Financial Corp. (KRNY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KRNY Profit Margin, ROE & Profitability Analysis
KRNY vs Finance Sector: How Kearny Financial Corp. Compares
How Kearny Financial Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kearny Financial Corp. Stock Overvalued? KRNY Valuation Analysis 2026
Based on fundamental analysis, Kearny Financial Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kearny Financial Corp. Balance Sheet: KRNY Debt, Cash & Liquidity
KRNY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kearny Financial Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.63 reflects profitable operations.
KRNY Revenue Growth, EPS Growth & YoY Performance
KRNY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2023 | $617.0K | $6.3M | $0.16 |
| Q2 2023 | $698.0K | $2.0M | $0.03 |
| Q1 2023 | $607.0K | -$4.1M | $0.25 |
| Q3 2022 | $473.0K | -$6.8M | $0.20 |
| Q2 2022 | $556.0K | $16.9M | $0.20 |
| Q1 2022 | $445.0K | $11.4M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kearny Financial Corp. Dividends, Buybacks & Capital Allocation
KRNY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kearny Financial Corp. (CIK: 0001617242)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRNY
What is the AI rating for KRNY?
Kearny Financial Corp. (KRNY) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 64% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRNY's key strengths?
Claude: Exceptional revenue growth of 140.5% YoY with matching 130.1% net income growth. Clean balance sheet with zero long-term debt and healthy equity base of $763M. ChatGPT: Strong YoY rebound in revenue and EPS. Adequate capitalization relative to assets (~10% equity/assets).
What are the risks of investing in KRNY?
Claude: Interest coverage ratio of 0.3x is critically low, indicating severe difficulty covering interest expenses with operating income. ROE of 3.8% and ROA of 0.4% are exceptionally weak for a financial institution, suggesting capital is not deployed efficiently. ChatGPT: Very low interest coverage (0.2x) signals earnings sensitivity to rates. Subpar returns (ROA 0.2%, ROE 2.5%) indicate weak core profitability.
What is KRNY's revenue and growth?
Kearny Financial Corp. reported revenue of $242.3M.
Does KRNY pay dividends?
Kearny Financial Corp. pays dividends, with $20.9M distributed to shareholders in the trailing twelve months.
Where can I find KRNY SEC filings?
Official SEC filings for Kearny Financial Corp. (CIK: 0001617242) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRNY's EPS?
Kearny Financial Corp. has a diluted EPS of $0.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KRNY's fundamental grade?
Based on our AI fundamental analysis in May 2026, Kearny Financial Corp. has a C grade with 64% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KRNY stock overvalued or undervalued?
Valuation metrics for KRNY: ROE of 3.8% (sector avg: 12%), net margin of 12.0% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is KRNY's AI grade for 2026?
Our dual AI analysis gives Kearny Financial Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KRNY's free cash flow?
Kearny Financial Corp.'s operating cash flow is $23.7M, with capital expenditures of $3.4M. FCF margin is 8.4%.
How does KRNY compare to other Finance stocks?
Vs Finance sector averages: Net margin 12.0% (avg: 25%), ROE 3.8% (avg: 12%), current ratio N/A (avg: 1.2).