New York Community Bancorp, Inc. (NYCB) is a bank holding company for New York Community Bank. Westbury, N.Y.-based NYCB provides multi-family-home loans in New York City, focusing on non-luxury residential apartment buildings with rent-regulated units that feature lower rents than non-regulated units. In addition to multi-family-home loans, it originates commercial real estate loans, specialty finance loans and leases, and, to a much lesser extent, acquisition, development, construction, and commercial and industrial loans.

The company paid a $0.17 quarterly dividend on Feb. 17, 2022. NYCB’s four-year average dividend yield is 6.21%, while its current dividend translates to a 6.63% yield.

The stock has declined 23.5% in price over the past six months and 18.5% over the past year to close the last trading session at $10.25. It is currently trading 28.4% below its 52-week high of $14.33, which it hit on Oct. 22, 2021.

Here is what could influence NYCB’s performance in the coming months:

Underwhelming Valuation

In terms of forward non-GAAP P/E, NYCB’s 7.50x is 31.7% lower than the 10.98x industry average. And its 0.65x forward non-GAAP PEG is 32.3% lower than the 0.96x industry average. Also, the stock’s 0.74x forward P/B is 33.1% lower than the 1.10x industry average.

Robust Financials

NYCB’s total revenues increased 16% year-over-year to $1.35 billion for its fiscal year ended Dec. 31, 2021. The company’s non-GAAP net income available to its common shareholders increased 42.6% year-over-year to $585 million. Also, its non-GAAP EPS came in at $1.24, representing a 42.5%increase year-over-year.

Favorable Analyst Estimates

Analysts expect NYCB’s revenues to grow 44% in its fiscal year 2022 and 21.4% in its fiscal 2023. Its EPS for fiscal 2022 and 2023 is expected to grow 12.1% and 11.5% year-over-year, respectively.

Lower-Than-Industry Profitability

In terms of trailing-12-month ROCE, NYCB’s 8.63% is 32.4% lower than the 12.78% industry average Its 1% trailing-12-month ROA is 25.4% lower than the 1.34% industry average.

POWR Ratings Reflect Uncertainty

NYCB has an overall C rating, which equates to a Neutral in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. NYCB has a D grade for Quality, which is in sync with its 0.30% trailing-12-month Capex/Sales, which is 81% lower than the 1.57% industry average.

NYCB is ranked #46 of 61 stocks in the Northeast Regional Banks industry. Click here to access NYCB’s Growth, Value, Momentum, Stability, and sentiment ratings.

Bottom Line

NYCB is currently trading below its $11.28 and $12.11 respective 50-day and 200-day moving averages, indicating a downtrend. Although analysts expect its EPS and revenue to grow this year and beyond, its lower-than-industry profitability makes its near-term prospects uncertain. Thus, it could be wise to wait for a better entry point in the stock.

How Does New York Community Bancorp, Inc. (NYCB) Stack Up Against its Peers?

While NYCB has an overall POWR C Rating, one might want to consider investing in the following Northeast Regional Banks stocks with a B (Buy) rating: BCB Bancorp, Inc. (BCBP) and Western New England Bancorp, Inc. (WNEB).

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