Is Kearny Financial Corp. overvalued or undervalued?

As of 25 July 2024, Kearny Financial Corp. has moved from a very attractive to a risky valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 15, a price to book value of 0.55, and a PEG ratio of 0.21, which, while low, does not compensate for the overall risk profile indicated by the valuation grade.
In comparison with peers, Provident Financial Services, Inc. has a P/E of 11.44 and Northwest Bancshares, Inc. stands at 12.93, both of which suggest that Kearny's valuation is less favorable. Additionally, Kearny's return on equity (ROE) is only 3.56%, which is significantly lower than the industry average, further supporting the conclusion that the stock is overvalued. Over the past year, Kearny has underperformed the S&P 500, with a return of 12.36% compared to the index's 10.26%, which adds to the concerns regarding its current valuation.