Now trading at a price of $29.95, Zions Bancorporation N.A. moved -3.9% so far Friday.
Zions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. The mid-cap Finance company has 9,989 full time employees and is based in Salt Lake City, UT. Zions Bancorporation N.A. has returned a 5.1% dividend yield over the last 12 months.
The Company Has an Irregular Stream of Positive Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $2,834 | $2,789 | $2,911 | $3,152 |
| Revenue Growth | n/a | -1.59% | 4.37% | 8.28% |
| Net Margins | 28.79% | 19.33% | 38.78% | 28.78% |
| Net Margins Growth | n/a | -32.86% | 100.62% | -25.79% |
| Earnings Per Share | $4.16 | $3.02 | $6.79 | $5.79 |
| EPS Growth | n/a | -27.4% | 124.83% | -14.73% |
| Diluted Shares (MM) | 187 | 166 | 160 | 293 |
| Free Cash Flow (MM) | $580 | $548 | $423 | $1,280 |
| FCF Growth | n/a | -5.52% | -22.81% | 202.6% |
| Capital Expenditures (MM) | -$117 | -$171 | -$206 | -$190 |
| LT Debt to Equity | 0.25 | 0.18 | 0.14 | 0.15 |
Zions Bancorporation N.A. Is Currently Undervalued:
Compared to the Finance sector's average of 14.34, Zions Bancorporation N.A. has a trailing twelve month P/E ratio of 5.2 and, according to its EPS guidance of 5.84, an expected P/E ratio of 5.1. Zions Bancorporation N.A.'s PEG ratio is 0.79 based on its 8.9% compound average growth rate of historical and projected earnings per share. This indicates that the company's shares are undervalued.
Furthermore, Zions Bancorporation N.A. is likely undervalued in terms of its equity because its P/B ratio is 1.0 compared to its sector average of 1.57. The company's shares are currently trading -48.1% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 4.94 * 29.953) = $57.7
Zions Bancorporation N.A. Is the Subject of Mixed Market Indicators:
17 analysts are following Zions Bancorporation N.A. and have set target prices ranging from $31.0 to $60.0 per share. On average, they have given the company a rating of buy. At the current price of $29.95, ZION is trading -26.74% away from its average analyst target price of $40.88 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an above average percentage of its shares sold short since 8.8% of the company's shares are tied to short positions. Institutions own 86.0% of Zions Bancorporation N.A.'s shares, while the insider ownership rate stands at 1.63%. The biggest shareholder is the Vanguard Group, Inc. with a 14% stake in the company worth approximately $631,336,072.
