Is Northfield Bancorp, Inc. (New Jersey) overvalued or undervalued?

As of 23 July 2025, the valuation grade for Northfield Bancorp, Inc. (New Jersey) has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 22, which is higher than peers like TrustCo Bank Corp. NY at 14.54 and Southern Missouri Bancorp, Inc. at 11.64. Additionally, Northfield's price to book value stands at 0.98, suggesting it is trading slightly below its book value, while its EV to EBITDA ratio of 33.64 indicates a premium compared to the industry.
In comparison to its peers, Northfield's valuation metrics highlight its attractiveness, especially against TrustCo Bank and Southern Missouri Bancorp, which have lower P/E ratios. Despite recent stock performance showing a decline over the past year (-0.17% vs. S&P 500's 17.14%), the long-term outlook remains positive with a 5-year return of 20.73%, though still trailing the S&P 500's 96.61%. Overall, the combination of favorable valuation ratios and peer comparisons supports the conclusion that Northfield Bancorp is currently undervalued.