Kearny Financial Corp Common Stock (KRNY)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Kearny Financial as a small regional bank: 502 employees, deposits, and loans concentrated in multifamily and commercial real estate. That is a commodity business, so I assume no wide moat; the main question is whether management can earn a respectable return on equity without taking hidden credit risk. Filed figures show the turnaround is real: fiscal 2026 net income was $36.3M, or $0.57 per diluted share, after fiscal 2025 net income of $26.1M, or $0.42, and a fiscal 2024 loss of $86.7M, or -$1.39. Quarterly filings show fiscal Q3 2026 net income of $10.1M, or $0.16, compared with $6.6M, or $0.11, in fiscal Q3 2025. FairStock's calculations at the 2026-10-13 close of $9.06 show a 15.89 P/E, 0.74 price-to-book, 4.79% ROE, 0.47% ROCE, 4.86% dividend yield, and a 3/9 Piotroski F-Score. The price-to-book discount and 4.86% dividend are attractive if book value is trustworthy, and a PEG of 0.36 suggests growth is cheap relative to earnings. But a 15.89 P/E is not a bargain for a bank earning less than 5% on equity, and the weak F-Score says the financial statements are not yet showing broad strength. I cannot judge the balance sheet properly without CET1, net interest margin, charge-offs, nonperforming loans, reserves, or deposit costs; none are in the data. Combined ratio is an insurer metric and also not provided. So this is a low-expectations turnaround, not a high-quality compounder. It needs several more quarters of clean credit and better returns before I would call it proven.

In plain English: Kearny Financial is a bank holding company that takes deposits and makes loans, mostly for apartment buildings and commercial property. It lost a lot of money two years ago but has been profitable again in the last two years, and at $9.06 the stock sells for less than the value of its net assets. Still, the bank earns only a small profit compared with its size, so the price looks cheap on assets but only fair on profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer