Zions Bancorporation, National Association (ZIONO) Stock Analysis

Zions Bancorporation, National Association (ZIONO) Financial Services Profile

Zions Bancorporation, National Association, a regional bank with a history dating back to 1873, offers diverse financial services including commercial and retail banking across the western United States. With a focus on small- and medium-sized businesses, Zions operates a substantial branch network and provides wealth management services.

What Is the Investment Thesis for ZIONO?

Zions Bancorporation, National Association presents a compelling case for investment due to its established presence in the growing western U.S. markets and its diversified banking services. With a P/E ratio of 9.9 and a dividend yield of 3.30%, the company offers a potential blend of value and income. A profit margin of 18.2% and gross margin of 67.1% indicate solid profitability. Key growth catalysts include expansion of commercial banking services and leveraging its branch network. Potential risks involve interest rate sensitivity and competition from larger national banks and fintech firms. The company's beta of 1.06 suggests market-correlated volatility.

Based on FMP financials and quantitative analysis

ZIONO Key Highlights

Market capitalization of $3.69B reflects Zions Bancorporation's position as a significant regional bank.

• P/E ratio of 9.9 indicates a potentially undervalued stock compared to industry peers.
• Dividend yield of 3.30% offers an attractive income stream for investors.
• Profit margin of 18.2% demonstrates efficient operations and profitability.
• Gross margin of 67.1% highlights the bank's ability to generate revenue from its services.

Who Are ZIONO's Competitors?

ZIONO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ZIONO's Key Strengths?

Strong presence in the western U.S. markets.

• Diversified banking services catering to a wide range of customers.
• Extensive branch network providing personalized service.
• Solid financial performance with healthy profit margins.

What Are ZIONO's Weaknesses?

Exposure to interest rate risk.

• Competition from larger national banks and fintech companies.
• Dependence on economic conditions in its operating region.
• Potential for regulatory changes to impact profitability.

What Could Drive ZIONO Stock Higher?

Expansion of digital banking services to attract younger customers and improve efficiency.

• Growth in commercial banking services to small- and medium-sized businesses in the western U.S.
• Optimization of branch network to enhance customer experience and drive deposit growth.

What Are the Key Risks for ZIONO?

Financial-distress signal — its Altman Z-Score of 0.45 sits in the distress zone (elevated bankruptcy risk).

• Rising interest rates impacting loan demand and profitability.
• Economic downturn in the western U.S. markets.
• Increased competition from fintech companies and larger national banks.
• Regulatory changes increasing compliance costs.

What Are the Growth Opportunities for ZIONO?

• Expansion of Commercial Banking Services: Zions can capitalize on the growing demand for commercial banking services among small- and medium-sized businesses in its operating region. By offering tailored financial solutions and building strong relationships with local businesses, Zions can increase its market share and drive revenue growth. The market for commercial banking services is estimated to be worth billions of dollars annually, with a projected growth rate of 5-7% over the next five years. Timeline: Ongoing.
• Leveraging Branch Network: Zions can optimize its existing branch network to enhance customer experience and drive deposit growth. By investing in branch renovations, technology upgrades, and employee training, Zions can attract new customers and retain existing ones. The branch network remains a valuable asset for building customer relationships and providing personalized service. Timeline: Ongoing.
• Digital Transformation Initiatives: Zions can invest in digital banking technologies to improve efficiency, reduce costs, and enhance customer satisfaction. By offering mobile banking, online account management, and other digital services, Zions can attract younger customers and compete with fintech companies. The market for digital banking services is growing rapidly, with a projected growth rate of 10-15% over the next five years. Timeline: Ongoing.
• Wealth Management and Private Client Banking: Zions can expand its wealth management and private client banking services to cater to high-net-worth individuals and families. By offering personalized investment advice, financial planning, and trust services, Zions can generate fee income and build long-term relationships with affluent clients. The market for wealth management services is growing rapidly, driven by increasing wealth accumulation and demographic trends. Timeline: Ongoing.
• Strategic Acquisitions: Zions can pursue strategic acquisitions to expand its geographic footprint and enhance its product offerings. By acquiring smaller banks or financial institutions in attractive markets, Zions can accelerate its growth and increase its market share. Acquisitions can also provide access to new technologies, talent, and customer relationships. Timeline: Ongoing.

What Are ZIONO's Competitive Advantages?

• Established presence in the growing western U.S. markets.
• Diversified banking services catering to a wide range of customers.
• Extensive branch network providing personalized service and local expertise.
• Strong relationships with small- and medium-sized businesses in its operating region.

What Does ZIONO Do?

Founded in 1873 and headquartered in Salt Lake City, Utah, Zions Bancorporation, National Association has evolved into a prominent regional bank serving primarily the western United States. The company provides a comprehensive suite of banking and related services, including corporate banking, commercial banking with a focus on small- and medium-sized businesses, commercial real estate banking, municipal and public finance, retail banking including residential mortgages, trust services, wealth management, private client banking, and capital markets products and services. Zions operates a network of 422 branches across Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The bank's history reflects a commitment to serving the financial needs of communities and businesses in its operating region. Formerly known as ZB, National Association, the company rebranded to Zions Bancorporation, National Association in September 2018, marking a strategic shift in its corporate identity. With a workforce of over 9,500 employees, Zions Bancorporation continues to focus on delivering personalized financial solutions and maintaining a strong presence in its key markets.

What Products and Services Does ZIONO Offer?

• Provides corporate banking services to businesses of various sizes.
• Offers commercial banking services, focusing on small- and medium-sized businesses.
• Provides commercial real estate banking services for property developers and investors.
• Offers municipal and public finance services to government entities.
• Provides retail banking services, including residential mortgages, to individuals and families.
• Offers trust services for estate planning and asset management.
• Provides wealth management and private client banking services to high-net-worth individuals.
• Offers capital markets products and services to institutional investors.

How Does ZIONO Make Money?

• Generates revenue through interest income from loans and other lending activities.
• Earns fee income from services such as wealth management, trust services, and transaction processing.
• Manages risk through diversification of loan portfolio and adherence to regulatory requirements.
• Invests in technology and infrastructure to improve efficiency and enhance customer experience.

What Industry Does ZIONO Operate In?

Zions Bancorporation operates within the regional banking sector, which is characterized by intense competition and evolving customer preferences. The industry is influenced by macroeconomic factors such as interest rates, economic growth, and regulatory changes. Regional banks face competition from larger national banks, credit unions, and emerging fintech companies. Zions differentiates itself through its strong presence in the western U.S. and its focus on small- and medium-sized businesses. The regional banking sector is expected to see continued consolidation and increased adoption of digital banking technologies.

Who Are ZIONO's Key Customers?

• Small- and medium-sized businesses seeking commercial banking services.
• Corporations requiring corporate banking solutions.
• Individuals and families seeking retail banking services and residential mortgages.
• High-net-worth individuals and families seeking wealth management and private client banking services.
• Government entities requiring municipal and public finance services.

How Zions Bancorporation, National Association Is Valued

Zions Bancorporation, National Association carries a market capitalization of $3.69B, placing it in the mid-cap category.

Company Profile

Zions Bancorporation, National Association operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Salt Lake City, US. The company is led by CEO Harris Henry Simmons. ZIONO has traded publicly since 2013.

Return on equity for Zions Bancorporation, National Association stands at 16.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. ZIONO trades at a trailing price-to-earnings ratio of 9.90, below the Financial Services sector average of ~18x. Its free cash flow yield is 29.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 15.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 32.0%, the inverse of the P/E and a quick read on earnings relative to price.

Zions Bancorporation, National Association's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.45 places it in the distress zone, a signal of elevated financial risk.

ZIONO Financials

ZIONO Latest News

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What Investors Ask About Zions Bancorporation, National Association (ZIONO) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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