📊 KRNY Key Takeaways
Is Kearny Financial Corp. (KRNY) a Good Investment?
Kearny Financial exhibits exceptional 140% YoY revenue growth and profitability, but severe structural financial distress undermines the positive headline numbers. Interest coverage of 0.2x indicates operating income cannot cover interest expenses, ROE of 2.5% is critically weak, and operating cash flow of $15.8M trailing net income of $19.0M signals poor earnings quality. These metrics suggest unsustainable profitability for a federally chartered savings institution.
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.
Why Buy Kearny Financial Corp. Stock? KRNY Key Strengths
- Exceptional revenue growth of 140.5% YoY with proportional net income expansion of 130.1%
- Zero long-term debt burden with debt/equity ratio of 0.00x eliminates leverage risk
- Positive free cash flow of $12.4M demonstrates cash generation capability for operations and capital deployment
- 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 0.2x is a critical red flag indicating operating income cannot service interest expenses - diagnostic of financial distress
- ROE of 2.5% and ROA of 0.2% are critically depressed, revealing poor capital efficiency and sustainability concerns despite accounting profits
- Operating cash flow of $15.8M materially lags net income of $19.0M, indicating low quality of earnings and potential accounting distortions
- 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 trajectory - must exceed 1.5x threshold to indicate financial stability
- Return on Equity and Return on Assets trends - must improve substantially to validate business model viability
- Operating cash flow to net income conversion rate - earnings quality deterioration requires monitoring
- 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 Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% 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 proportional net income expansion of 130.1%. Zero long-term debt burden with debt/equity ratio of 0.00x eliminates leverage risk. 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 0.2x is a critical red flag indicating operating income cannot service interest expenses - diagnostic of financial distress. ROE of 2.5% and ROA of 0.2% are critically depressed, revealing poor capital efficiency and sustainability concerns despite accounting profits. 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 $163.2M.
Does KRNY pay dividends?
Kearny Financial Corp. pays dividends, with $14.0M 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 $0.30.
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 rating reflects both perspectives for balanced insights.
Is KRNY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kearny Financial Corp. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KRNY stock overvalued or undervalued?
Valuation metrics for KRNY: ROE of 2.5% (sector avg: 12%), net margin of 11.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy KRNY stock in 2026?
Our dual AI analysis gives Kearny Financial Corp. a combined SELL rating 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 $15.8M, with capital expenditures of $3.4M. FCF margin is 7.6%.
How does KRNY compare to other Finance stocks?
Vs Finance sector averages: Net margin 11.6% (avg: 25%), ROE 2.5% (avg: 12%), current ratio N/A (avg: 1.2).