Kearny Financial Corp. (KRNY): fair value, margin of safety and Wheel Score

Is KRNY undervalued?

KRNY has a margin of safety of 51%: the stock closed at 9.01 on 16 Oct 2026 against a GLS average fair value of 18.53. 6 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.

The 9 models disagree widely: GLS Growth gives 0.6992 while DCF gives 71.01. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files KRNY under High Yield Income: a dividend yield above 4%.

Nine valuation models for KRNY

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health KRNY scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 1.9%, ROE 4.7%, ROA 0.5% - with debt at 1.50 times equity and a free-cash-flow yield of 6.5%.

The dividend yield is high at 4.88% (payout ratio 77%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Products And Services, Miscellaneous 54%, Deposit Related Fees And Charges 29%, Electronic Banking Fees And Charges Int… 18% (fiscal year FY2026).

Institutional ownership scores 9/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 77: Good

KRNY scores 77 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (7/15), the option premium on offer (17/20) and how easily the stock trades (10/20). Moat (7/15) is the part holding the score back.

Implied volatility is 70% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (17 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 276 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 367k shares a day on a market cap of $569M, with a beta of 0.62 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Kearny Financial Corp. reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Banks - Regional

The 12 companies below are the closest to Kearny Financial Corp. by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare KRNY with 7 of them   All Financial Services stocks →