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Zions Bancorporation, National Association (N.A) (ZION)
:ZION
RESEARCH TOOLSreports
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Zions Bancorporation National Association
(NASDAQ:ZION)69Neutral
Positive Factors
Earnings
ZION reported 3Q EPS of $1.37, 19c above consensus, driven by better than expected NII, capital markets and well-managed expenses.
Loan Growth
Loan growth was better than expected and the bank noted that customer optimism seemed to have improved with lower rates.
Negative Factors
Loan Growth Uncertainty
Loan growth remains uncertain, with guidance for 'stable to slightly increasing' loan growth unchanged.
Zions Bancorporation National Association (ZION) vs. S&P 500 (SPY)
Market Cap
$7.55B
Dividend Yield3.17%
Average Volume (3M)1.35M
Price to Earnings (P/E)10.3
Beta (1Y)1.76
Revenue Growth7.91%
EPS Growth13.79%
CountryUS
Employees9,679
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)4.96
Shares Outstanding147,891,780
10 Day Avg. Volume1,643,509
30 Day Avg. Volume1,350,059
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)N/A
Price to Sales (P/S)2.51
Price to Cash Flow (P/CF)3.80
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$64.47Price Target Upside26.34% Upside
Rating ConsensusHold
Number of Analyst Covering16
Zions Bancorporation National Association Business Overview & Revenue Model
Company DescriptionZions Bancorporation National Association (ZION) is a leading financial services institution in the United States. The company operates through a network of regional banks under various brand names, providing a comprehensive range of banking and financial solutions. Zions offers personal and commercial banking, mortgage lending, wealth management, and investment services. With a focus on fostering relationships with local communities and businesses, it caters to individuals, small- to mid-sized enterprises, and large corporations across multiple sectors.
How the Company Makes MoneyZions Bancorporation generates revenue primarily through interest income and non-interest income sources. Interest income is derived from the loans and credit products it offers to individuals and businesses. This includes personal loans, commercial loans, mortgages, and lines of credit. Non-interest income comes from fees and service charges associated with deposit accounts, transaction processing, and wealth management services. Additionally, investment banking and advisory fees contribute to its earnings. Zions also benefits from strategic partnerships with financial technology firms and other financial institutions, which enhance its service offerings and customer reach. The company's performance is influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes.
Zions Bancorporation National Association Financial Statement Overview
Summary
Zions Bancorporation demonstrates strong revenue and profit growth, with significant improvements in income statement metrics and strong cash flow management. However, leverage concerns due to a high equity ratio pose some risk.Income Statement
Zions Bancorporation has shown solid revenue growth, with a significant increase from $2.705 billion in 2023 to $4.293 billion in 2024. The net profit margin improved to 18.26% in 2024, up from 25.14% in 2023, indicating strong profitability. The EBIT margin was exceptionally high at 98.95%, reflecting efficient cost management. However, the EBITDA margin decreased slightly, highlighting potential operational challenges.82
Very Positive
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio of 0.78, which is manageable. The return on equity improved to 12.81%, reflecting enhanced profitability. However, the equity ratio stands at 6.90%, indicating a high level of leverage, which could pose risks in adverse conditions.75
Positive
Cash Flow
Operating cash flow improved significantly to $1.47 billion in 2024, a positive indicator of cash-generating ability. Free cash flow also increased, with a free cash flow to net income ratio of 1.88, suggesting efficient cash conversion. However, the overall cash flow situation exhibited fluctuations, with substantial financing cash outflows.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.29B | 2.71B | 3.34B | 2.91B | 2.79B | Gross Profit |
| 4.29B | 2.71B | 3.34B | 2.91B | 2.79B | EBIT |
| 1.01B | 1.05B | 1.34B | 1.45B | 672.00M | EBITDA |
| 1.01B | 1.03B | 1.26B | 1.43B | 758.00M | Net Income Common Stockholders |
| 784.00M | 680.00M | 907.00M | 1.13B | 539.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.13B | 2.25B | 13.91B | 34.93B | 17.35B | Total Assets |
| 88.78B | 87.20B | 89.55B | 93.20B | 81.48B | Total Debt |
| 4.78B | 2.07B | 7.75B | 1.01B | 1.34B | Net Debt |
| 4.78B | -137.00M | 5.75B | -9.87B | -281.00M | Total Liabilities |
| 82.65B | 81.51B | 84.65B | 1.01B | 1.34B | Stockholders Equity |
| 6.12B | 5.69B | 4.89B | 7.46B | 7.89B |
| Cash Flow | Free Cash Flow | |||
| 1.47B | 772.00M | 1.28B | 423.00M | 548.00M | Operating Cash Flow |
| 1.47B | 885.00M | 1.47B | 629.00M | 719.00M | Investing Cash Flow |
| 1.41B | 2.37B | 1.41B | -11.58B | -12.20B | Financing Cash Flow |
| -2.81B | -3.20B | -2.81B | 11.00B | 11.32B |
Zions Bancorporation National Association Technical Analysis
Negative
51.03
Price Trends
55.29
Negative
55.19
Negative
50.00
Positive
Market Momentum
-1.03
Positive
32.16
Neutral
25.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZION, the sentiment is Negative. The current price of 51.03 is below the 20-day moving average (MA) of 54.95, below the 50-day MA of 55.29, and above the 200-day MA of 50.00, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 25.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZION.
Zions Bancorporation National Association Risk Analysis
Zions Bancorporation National Association disclosed 34 risk factors in its most recent earnings report. Zions Bancorporation National Association reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zions Bancorporation National Association Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $22.55B | 12.72 | 9.83% | 3.83% | 10.13% | -1.25% | |
72 Outperform | $28.93B | 13.86 | 11.78% | 3.34% | 11.21% | -2.26% | |
72 Outperform | $20.25B | 11.57 | 10.59% | 4.24% | 2.70% | -8.16% | |
71 Outperform | $71.41B | 13.13 | 10.82% | 3.35% | 7.24% | 7.51% | |
69 Neutral | $7.55B | 10.31 | 12.80% | 3.17% | 7.91% | 13.79% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
63 Neutral | $7.82B | 11.89 | 10.67% | 4.54% | -6.54% | -21.90% |
* Financial Sector Average
Performance Comparison
ZION
Zions Bancorporation National Association
51.03
11.08
27.73%
CMA
Comerica
59.52
10.92
22.47%
FITB
Fifth Third Bancorp
41.63
6.90
19.87%
HBAN
Huntington Bancshares
15.51
2.55
19.68%
PNC
PNC Financial
180.45
35.42
24.42%
RF
Regions Financial
22.36
3.85
20.80%
Zions Bancorporation National Association Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -12.87% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Neutral
The call presented a balanced view with significant improvements in financial performance, net interest margin expansion, and capital markets success. However, there were challenges with increased net loan losses, a rise in classified loan balances, and higher noninterest expenses.Highlights
Improved Financial Performance
Fourth quarter adjusted pre-provision net revenue increased by 19% relative to the prior year quarter. Net earnings for the year were $737 million or $4.95 per share.
Net Interest Margin Expansion
The net interest margin expanded for the fourth consecutive quarter to 3.05%, compared to 3.03% in the prior quarter and 2.91% in the year ago quarter.
Capital Markets Success
The Capital Markets business experienced strong results, with a 36% increase for the full year compared to 2023.
Customer Deposit Growth
Customer deposits increased on both an ending and average basis in the fourth quarter and the full year, with stability in noninterest-bearing demand deposits.
Strong Loan Growth Outlook
Average loan growth was modest at 1.1% on a linked-quarter basis and 3.2% for the full year, with expectations for continued growth in 2025.
Lowlights
Increased Net Loan Losses
Net loan losses were higher in the quarter at $36 million or 24 basis points annualized, primarily due to a single commercial and industrial credit.
Rise in Classified Loan Balances
The level of classified balances increased by $777 million, primarily in commercial real estate, although nonaccrual loans decreased by 18%.
Provision for Credit Losses
Provision for credit losses this quarter of $41 million had a negative impact of $0.21 per share.
Increased Noninterest Expenses
Adjusted noninterest expense increased $10 million to $509 million, due to increases in compensation-related accruals, legal services, and occupancy.
Company Guidance
During the Zions Bancorporation Q4 2024 earnings call, the company provided guidance that included several key financial metrics and expectations for 2025. They reported a 19% increase in adjusted pre-provision net revenue for the fourth quarter compared to the prior year, with net earnings for the year at $737 million or $4.95 per share. The net interest margin expanded to 3.05%, marking the fourth consecutive quarter of improvement. The efficiency ratio improved by 62%, and customer deposits increased on both an ending and average basis. Looking ahead to 2025, Zions anticipates continued improvement in profitability measures, with positive operating leverage and moderately increasing net interest income. They project a slight increase in period-end loan balances, driven by commercial loans, with a focus on disciplined expense management despite inflationary pressures.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.