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 394 industry peers in the Banks industry. PFS may be in some trouble as it scores bad on both profitability and health. PFS has a decent growth rate and is not valued too expensively. Finally PFS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFS was profitable.
PFS had a positive operating cash flow in the past year.
PFS had positive earnings in each of the past 5 years.
Each year in the past 5 years PFS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.61%, PFS is not doing good in the industry: 67.77% of the companies in the same industry are doing better.
With a Return On Equity value of 5.55%, PFS is not doing good in the industry: 74.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 5.55% | ||
| 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
Looking at the Profit Margin, with a value of 18.69%, PFS is doing worse than 67.51% of the companies in the same industry.
PFS's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for PFS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 18.69% | ||
| 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.
The number of shares outstanding for PFS has been increased compared to 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 1.10, which is an excellent value as it means it would take PFS, only 1.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.10, PFS is in the better half of the industry, outperforming 71.32% of the companies in the same industry.
PFS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
PFS has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: PFS outperforms 41.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.86%
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 -35.09%.
The Earnings Per Share has been decreasing by -9.71% on average over the past years.
Looking at the last year, PFS shows a very strong growth in Revenue. The Revenue has grown by 70.31%.
PFS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.94% yearly.
EPS 1Y (TTM)-35.09%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%13.95%
Revenue 1Y (TTM)70.31%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%94.01%
3.2 Future
The Earnings Per Share is expected to grow by 48.04% on average over the next years. This is a very strong growth
PFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.90% yearly.
EPS Next Y98.31%
EPS Next 2Y48.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year29.03%
Revenue Next 2Y17.9%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.81, the valuation of PFS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PFS indicates a slightly more expensive valuation: PFS is more expensive than 72.34% of the companies listed in the same industry.
PFS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of PFS.
Based on the Price/Forward Earnings ratio, PFS is valued cheaper than 82.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PFS to the average of the S&P500 Index (35.19), we can say PFS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PFS is valued cheaper than 91.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.17 | ||
| 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.
A more expensive valuation may be justified as PFS's earnings are expected to grow with 48.04% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y48.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PFS has a Yearly Dividend Yield of 5.11%, which is a nice return.
PFS's Dividend Yield is rather good when compared to the industry average which is at 3.31. PFS pays more dividend than 89.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, PFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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 77.77% of its income as dividend. This is not a sustainable payout ratio.
DP77.77%
EPS Next 2Y48.04%
EPS Next 3YN/A
NYSE:PFS (7/14/2025, 11:46:22 AM)
18.66
+0.12 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.94%
Inst Owner Change0.01%
Ins Owners3.03%
Ins Owner Change2.32%
Market Cap2.44B
Analysts80
Price Target21.68 (16.18%)
Short Float %2.61%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
Yearly Dividend0.98
Dividend Growth(5Y)-2.34%
DP77.77%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.9%
Min EPS beat(2)-27.02%
Max EPS beat(2)3.22%
EPS beat(4)1
Avg EPS beat(4)-44.76%
Min EPS beat(4)-130.77%
Max EPS beat(4)3.22%
EPS beat(8)4
Avg EPS beat(8)-20.15%
EPS beat(12)6
Avg EPS beat(12)-13.73%
EPS beat(16)10
Avg EPS beat(16)-6.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)-0.93%
Revenue beat(4)1
Avg Revenue beat(4)2.87%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)18.19%
Revenue beat(8)3
Avg Revenue beat(8)-1.93%
Revenue beat(12)6
Avg Revenue beat(12)3.72%
Revenue beat(16)10
Avg Revenue beat(16)8.49%
PT rev (1m)0%
PT rev (3m)-7.61%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-1%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.93%
Revenue NQ rev (3m)2.42%
Revenue NY rev (1m)2.81%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 8.11 | ||
| P/S | 3.09 | ||
| P/FCF | 5.17 | ||
| P/OCF | 5.15 | ||
| P/B | 0.92 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.11
EY5.95%
EPS(NY)2.3
Fwd EY12.33%
FCF(TTM)3.61
FCFY19.34%
OCF(TTM)3.62
OCFY19.42%
SpS6.04
BVpS20.35
TBVpS14.15
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 5.55% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 18.69% | ||
| GM | N/A | ||
| FCFM | 59.77% |
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 | 0.19 | ||
| Debt/FCF | 1.1 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 2.79% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 319.77% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC11.86%
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)-35.09%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%13.95%
EPS Next Y98.31%
EPS Next 2Y48.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)70.31%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%94.01%
Revenue Next Year29.03%
Revenue Next 2Y17.9%
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 1Y128.85%
FCF growth 3Y43.32%
FCF growth 5Y26.35%
OCF growth 1Y128.47%
OCF growth 3Y39.17%
OCF growth 5Y25.51%