Stock Analysis & Valuation Zions Bancorporation, National Association (ZIONP)

• Previous Close: $19.95
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	32.74	64
Intrinsic value (DCF)	48.45	143
Graham-Dodd Method	31.81	59
Graham Formula	84.05	321

Strategic Investment Analysis

Company Overview

Zions Bancorporation, National Association (NASDAQ: ZIONP) is a leading regional bank providing comprehensive financial services across 11 Western and Southwestern U.S. states. Founded in 1873 and headquartered in Salt Lake City, Utah, Zions Bancorporation operates 422 branches, offering corporate banking, commercial banking (with a focus on small- and medium-sized businesses), commercial real estate lending, retail banking, wealth management, and capital markets services. The bank serves a diverse clientele, including businesses, municipalities, and individual customers, with specialized services such as trust management and private client banking. With a market capitalization of approximately $3.38 billion, Zions Bancorporation maintains a strong regional presence, particularly in Utah, where it is a key financial institution. The bank’s long-standing history, conservative risk management, and focus on relationship banking position it as a stable player in the competitive regional banking sector.

Investment Summary

Zions Bancorporation presents a moderate investment opportunity with a beta of 0.864, indicating lower volatility compared to the broader market. The bank reported $4.99 billion in revenue and $784 million in net income for the latest fiscal year, with diluted EPS of $4.95. Its strong operating cash flow ($1.15 billion) and solid liquidity position ($3.5 billion in cash and equivalents) suggest financial stability. However, the bank’s total debt of $4.37 billion warrants caution, though its dividend yield (currently ~1.51 per share) may appeal to income-focused investors. Zions Bancorporation’s regional focus and conservative lending practices mitigate some risks, but its growth prospects are tied to economic conditions in its operating markets, particularly commercial real estate and small business lending.

Competitive Analysis

Zions Bancorporation competes in the highly fragmented regional banking sector, where differentiation is driven by customer service, local market expertise, and niche lending capabilities. Its competitive advantages include a deep-rooted presence in Western U.S. markets, particularly Utah, where it holds significant market share. The bank’s focus on small- and medium-sized businesses (SMBs) and commercial real estate lending provides a stable revenue base, though it faces stiff competition from larger national banks and fintech disruptors. Zions’ conservative underwriting standards have historically shielded it from excessive credit risk, but its growth is constrained by its regional concentration. Unlike megabanks, Zions lacks the scale to compete on pricing for large corporate clients, but its personalized service and local decision-making appeal to SMBs and community-focused clients. The bank’s wealth management and trust services further diversify its revenue streams, though these segments are also highly competitive. Overall, Zions Bancorporation’s competitive positioning is solid but not dominant, relying on regional loyalty rather than nationwide scale.

Major Competitors

• U.S. Bancorp (USB): U.S. Bancorp (NYSE: USB) is a larger regional bank with a national presence, offering similar services but with greater scale and resources. Its strengths include a diversified revenue mix and strong digital banking capabilities, though its size can lead to less personalized service compared to Zions. USB’s higher regulatory compliance burden may also limit agility.
• Western Alliance Bancorporation (WAL): Western Alliance (NYSE: WAL) is a fast-growing regional bank with a strong commercial lending focus, particularly in Arizona, Nevada, and California. It competes directly with Zions in SMB and commercial real estate lending but has shown more aggressive growth, which could pose higher risk in economic downturns.
• First Financial Bankshares (FFIN): First Financial (NASDAQ: FFIN) operates in Texas and competes with Zions in commercial and retail banking. Its conservative management and strong Texas market presence mirror Zions’ regional strategy, but its smaller geographic footprint limits diversification.
• Comerica Incorporated (CMA): Comerica (NYSE: CMA) is another regional player with a focus on commercial banking, though it operates in different markets (primarily Texas, Michigan, and California). Its larger size provides cost advantages, but its exposure to cyclical industries like energy lending increases risk compared to Zions.
• Zions Bancorporation (Common Stock) (ZION): Zions’ common stock (NASDAQ: ZION) is a direct competitor to its preferred shares (ZIONP), offering different risk-return profiles. Common shareholders benefit from potential capital appreciation but face higher volatility, while preferred shares provide stable dividends with lower upside.