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

As of 17 October 2025, the valuation grade for Northfield Bancorp, Inc. (New Jersey) moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears to be undervalued, particularly when considering its price-to-earnings (P/E) ratio of 22, which is higher than its peer TrustCo Bank Corp. NY at 14.54, and its price-to-book value of 0.98, which is competitive against Southern Missouri Bancorp, Inc. at 0.66. Additionally, the enterprise value to EBITDA ratio stands at 33.64, suggesting that the market may not fully recognize the company's earnings potential relative to its peers.
Despite the positive valuation indicators, Northfield Bancorp has faced significant stock performance challenges, with a year-to-date return of -8.43%, compared to a 13.30% return for the S&P 500, and a three-year return of -30.23% versus 81.19% for the index. This stark contrast in performance highlights the potential mispricing of the stock, reinforcing the view that it is undervalued in the current market environment.