PROVIDENT FINANCIAL SERVICES (PFS) Stock Fundamental Analysis
NYSE:PFS - New York Stock Exchange, Inc. - US74386T1051 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PFS. PFS was compared to 397 industry peers in the Banks industry. PFS may be in some trouble as it scores bad on both profitability and health. PFS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
PFS had positive earnings in the past year.
In the past year PFS had a positive cash flow from operations.
PFS had positive earnings in each of the past 5 years.
In the past 5 years PFS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PFS (0.48%) is worse than 74.81% of its industry peers.
PFS's Return On Equity of 4.44% is on the low side compared to the rest of the industry. PFS is outperformed by 80.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 4.44% | ||
| ROIC | N/A |
ROA(3y)0.89%
ROA(5y)0.93%
ROE(3y)7.68%
ROE(5y)7.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PFS (16.63%) is worse than 72.54% of its industry peers.
In the last couple of years the Profit Margin of PFS has declined.
PFS does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 16.63% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-23.46%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PFS does not have a ROIC to compare to the WACC, probably because it is not profitable.
PFS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFS has more shares outstanding
The debt/assets ratio for PFS has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of PFS is 1.21, which is an excellent value as it means it would take PFS, only 1.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PFS (1.21) is better than 68.51% of its industry peers.
PFS has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
PFS has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.89%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.50%.
Measured over the past years, PFS shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.71% on average per year.
PFS shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.95%.
The Revenue has been growing by 13.94% on average over the past years. This is quite good.
EPS 1Y (TTM)-34.5%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%16.28%
Revenue 1Y (TTM)44.95%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%122.87%
3.2 Future
Based on estimates for the next years, PFS will show a very strong growth in Earnings Per Share. The EPS will grow by 48.79% on average per year.
Based on estimates for the next years, PFS will show a quite strong growth in Revenue. The Revenue will grow by 16.34% on average per year.
EPS Next Y98.31%
EPS Next 2Y48.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.04%
Revenue Next 2Y16.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.28, PFS is valued correctly.
70.03% of the companies in the same industry are cheaper than PFS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PFS to the average of the S&P500 Index (24.21), we can say PFS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 7.36, the valuation of PFS can be described as very cheap.
PFS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PFS is cheaper than 86.90% of the companies in the same industry.
PFS is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
92.19% of the companies in the same industry are more expensive than PFS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PFS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PFS's earnings are expected to grow with 48.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y48.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.75%, PFS is a good candidate for dividend investing.
PFS's Dividend Yield is rather good when compared to the industry average which is at 3.49. PFS pays more dividend than 91.44% of the companies in the same industry.
PFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
5.2 History
The dividend of PFS decreases each year by -2.34%.
PFS has been paying a dividend for at least 10 years, so it has a reliable track record.
PFS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.34%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
PFS pays out 87.39% of its income as dividend. This is not a sustainable payout ratio.
DP87.39%
EPS Next 2Y48.79%
EPS Next 3YN/A
17.11
-0.09 (-0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.81%
Inst Owner Change0.2%
Ins Owners2.82%
Ins Owner Change1.75%
Market Cap2.24B
Analysts78
Price Target23.29 (36.12%)
Short Float %2.66%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Yearly Dividend0.98
Dividend Growth(5Y)-2.34%
DP87.39%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.75%
Min EPS beat(2)-27.02%
Max EPS beat(2)-24.48%
EPS beat(4)1
Avg EPS beat(4)-43.83%
Min EPS beat(4)-130.77%
Max EPS beat(4)6.97%
EPS beat(8)3
Avg EPS beat(8)-21.58%
EPS beat(12)6
Avg EPS beat(12)-11.97%
EPS beat(16)10
Avg EPS beat(16)-4.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)-2.62%
Revenue beat(4)2
Avg Revenue beat(4)3.1%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)18.19%
Revenue beat(8)3
Avg Revenue beat(8)-2.35%
Revenue beat(12)7
Avg Revenue beat(12)5.57%
Revenue beat(16)11
Avg Revenue beat(16)9.66%
PT rev (1m)-1.44%
PT rev (3m)-4.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 7.36 | ||
| P/S | 3.22 | ||
| P/FCF | 5.26 | ||
| P/OCF | 5.24 | ||
| P/B | 0.86 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.12
EY6.55%
EPS(NY)2.32
Fwd EY13.59%
FCF(TTM)3.25
FCFY19.01%
OCF(TTM)3.26
OCFY19.07%
SpS5.32
BVpS19.91
TBVpS13.64
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 4.44% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 16.63% | ||
| GM | N/A | ||
| FCFM | 61.19% |
ROA(3y)0.89%
ROA(5y)0.93%
ROE(3y)7.68%
ROE(5y)7.78%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-23.46%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 2.39% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 367.95% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC11.89%
ROIC/WACCN/A
Cap/Depr(3y)25.29%
Cap/Depr(5y)60.18%
Cap/Sales(3y)1.2%
Cap/Sales(5y)2%
Profit Quality(3y)201.95%
Profit Quality(5y)157.77%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.5%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%16.28%
EPS Next Y98.31%
EPS Next 2Y48.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.95%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%122.87%
Revenue Next Year26.04%
Revenue Next 2Y16.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y156.21%
FCF growth 3Y43.32%
FCF growth 5Y26.35%
OCF growth 1Y145.9%
OCF growth 3Y39.17%
OCF growth 5Y25.51%