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PROVIDENT FINANCIAL SERVICES (PFS) Stock Fundamental Analysis

NYSE:PFS - New York Stock Exchange, Inc. - US74386T1051 - Common Stock - Currency: USD

16.54  -0.34 (-2.01%)

After market: 16.54 0 (0%)

Fundamental Rating

4

PFS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 398 industry peers in the Banks industry. Both the profitability and financial health of PFS have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on PFS.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

PFS had positive earnings in the past year.
PFS had a positive operating cash flow in the past year.
In the past 5 years PFS has always been profitable.
In the past 5 years PFS always reported a positive cash flow from operatings.
PFS Yearly Net Income VS EBIT VS OCF VS FCFPFS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

PFS has a Return On Assets of 0.48%. This is in the lower half of the industry: PFS underperforms 74.87% of its industry peers.
PFS has a Return On Equity of 4.44%. This is amonst the worse of the industry: PFS underperforms 80.90% of its industry peers.
Industry RankSector 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
PFS Yearly ROA, ROE, ROICPFS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

PFS's Profit Margin of 16.63% is on the low side compared to the rest of the industry. PFS is outperformed by 72.36% 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 RankSector 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
PFS Yearly Profit, Operating, Gross MarginsPFS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

3

2. Health

2.1 Basic Checks

PFS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, PFS has more shares outstanding
Compared to 5 years ago, PFS has more shares outstanding
Compared to 1 year ago, PFS has an improved debt to assets ratio.
PFS Yearly Shares OutstandingPFS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
PFS Yearly Total Debt VS Total AssetsPFS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

PFS has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
PFS has a better Debt to FCF ratio (1.21) than 68.09% 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 of 0.20. This is comparable to the rest of the industry: PFS outperforms 46.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.21
Altman-Z N/A
ROIC/WACCN/A
WACC11.88%
PFS Yearly LT Debt VS Equity VS FCFPFS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PFS Yearly Current Assets VS Current LiabilitesPFS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

6

3. Growth

3.1 Past

The earnings per share for PFS have decreased strongly by -34.50% in the last year.
PFS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.71% yearly.
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.
PFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.34% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
PFS Yearly Revenue VS EstimatesPFS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
PFS Yearly EPS VS EstimatesPFS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.77, which indicates a correct valuation of PFS.
69.35% of the companies in the same industry are cheaper than PFS, based on the Price/Earnings ratio.
PFS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
PFS is valuated cheaply with a Price/Forward Earnings ratio of 7.11.
Based on the Price/Forward Earnings ratio, PFS is valued cheaper than 87.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. PFS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 14.77
Fwd PE 7.11
PFS Price Earnings VS Forward Price EarningsPFS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, PFS is valued cheaply inside the industry as 92.46% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.08
EV/EBITDA N/A
PFS Per share dataPFS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)0.15
PEG (5Y)N/A
EPS Next 2Y48.79%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.69%, PFS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.54, PFS pays a better dividend. On top of this PFS pays more dividend than 91.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, PFS pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.69%

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
PFS Yearly Dividends per sharePFS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

87.39% of the earnings are spent on dividend by PFS. This is not a sustainable payout ratio.
DP87.39%
EPS Next 2Y48.79%
EPS Next 3YN/A
PFS Yearly Income VS Free CF VS DividendPFS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
PFS Dividend Payout.PFS Dividend Payout, showing the Payout Ratio.PFS Dividend Payout.PayoutRetained Earnings

PROVIDENT FINANCIAL SERVICES

NYSE:PFS (4/25/2025, 8:04:00 PM)

After market: 16.54 0 (0%)

16.54

-0.34 (-2.01%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners69.81%
Inst Owner Change0.55%
Ins Owners2.82%
Ins Owner Change0.65%
Market Cap2.16B
Analysts78
Price Target23.29 (40.81%)
Short Float %2.54%
Short Ratio4.23
Dividend
Industry RankSector Rank
Dividend Yield 5.69%
Yearly Dividend0.98
Dividend Growth(5Y)-2.34%
DP87.39%
Div Incr Years0
Div Non Decr Years11
Ex-Date02-14 2025-02-14 (0.24)
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)-5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.06%
Valuation
Industry RankSector Rank
PE 14.77
Fwd PE 7.11
P/S 3.11
P/FCF 5.08
P/OCF 5.06
P/B 0.83
P/tB 1.21
EV/EBITDA N/A
EPS(TTM)1.12
EY6.77%
EPS(NY)2.32
Fwd EY14.05%
FCF(TTM)3.26
FCFY19.69%
OCF(TTM)3.27
OCFY19.75%
SpS5.32
BVpS19.93
TBVpS13.66
PEG (NY)0.15
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC11.88%
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%