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Zions Bancorp NA ZION

Morningstar Rating
$39.92 +0.68 (1.73%)
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Company Report

Zions Faces High Funding Pressure, but the Market Is Too Harsh on Its Valuation

Zions Bancorporation is one of the smaller regional banks that we cover. It is primarily a commercial bank focused on small to midsize businesses in the western half of the United States, where on-the-ground relationships are key. Although Zions struggled during the financial crisis, it has made meaningful improvements to its credit risk management and operational efficiency. We think the main determinants of the bank’s future success will be the interest-rate environment, the stability of the deposit base, and the ability to maintain and improve operational efficiency.

Price vs Fair Value

ZION is trading at a 29% discount.
Price
$39.92
Fair Value
$12.00
Uncertainty
High
1-Star Price
$27.50
5-Star Price
$13.30
Economic Moat
Xcmt
Capital Allocation
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Bulls Say, Bears Say

Bulls

Zions is priced like a distressed asset. It would not take much to exceed the current expectations being priced into the stock.

Bears

There are few positive catalysts left for banks. Funding costs are running higher, net interest income has likely peaked, higher regulatory scrutiny is likely, and a recession may be around the corner.

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News

Trading Information

Previous Close Price
$39.24
Day Range
$39.0540.19
52-Week Range
$18.2646.15
Bid/Ask
$38.50 / $41.89
Market Cap
$5.89 Bil
Volume/Avg
3.3 Mil / 3.2 Mil

Key Statistics

Price/Earnings (Normalized)
7.99
Price/Sales
1.86
Dividend Yield (Trailing)
4.18%
Dividend Yield (Forward)
4.18%
Total Yield
4.92%

Company Profile

Zions Bancorporation is a regional U.S. bank with core operations that span 11 states. The bank is headquartered in Salt Lake City and does business primarily in the Western and Southwestern United States. Zions primarily focuses on providing banking services to small and midsize businesses, with the bulk of its loans focused on commercial and commercial real estate lending.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Small Value
Total Number of Employees
9,679

Competitors

Valuation

Metric
ZION
BAC
JPM
Price/Earnings (Normalized)
7.9911.5610.89
Price/Book Value
1.111.061.69
Price/Sales
1.862.933.33
Price/Cash Flow
5.616.847.70
Price/Earnings
ZION
BAC
JPM

Financial Strength

Metric
ZION
BAC
JPM
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
ZION
BAC
JPM
Return on Assets (Normalized)
0.89%0.99%1.29%
Return on Equity (Normalized)
16.26%12.26%17.36%
Return on Invested Capital (Normalized)
Return on Assets
ZION
BAC
JPM
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Economic Moat
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LYG
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DB
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NWG
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