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 396 industry peers in the Banks industry. PFS has a bad profitability rating. Also its financial health evaluation is rather negative. PFS may be a bit undervalued, certainly considering the very reasonable score on growth Finally PFS also has an excellent dividend rating.
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.
Each year in the past 5 years PFS has been profitable.
In the past 5 years PFS always reported a positive cash flow from operatings.
1.2 Ratios
PFS has a Return On Assets of 0.61%. This is in the lower half of the industry: PFS underperforms 67.68% of its industry peers.
With a Return On Equity value of 5.55%, PFS is not doing good in the industry: 73.99% 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
PFS has a Profit Margin of 18.69%. This is in the lower half of the industry: PFS underperforms 67.68% 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) | 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.
Compared to 1 year ago, PFS has more shares outstanding
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
PFS has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.10, PFS is doing good in the industry, outperforming 71.21% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that PFS is not too dependend on debt financing.
PFS has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.96%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for PFS have decreased strongly by -35.09% 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 70.31%.
The Revenue has been growing by 13.94% on average over the past years. This is quite good.
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
Based on estimates for the next years, PFS will show a very strong growth in Earnings Per Share. The EPS will grow by 48.03% on average per year.
PFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.33% yearly.
EPS Next Y97.96%
EPS Next 2Y48.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.5%
Revenue Next 2Y16.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
PFS is valuated correctly with a Price/Earnings ratio of 15.11.
Compared to the rest of the industry, the Price/Earnings ratio of PFS indicates a slightly more expensive valuation: PFS is more expensive than 70.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PFS to the average of the S&P500 Index (26.52), we can say PFS is valued slightly cheaper.
The Price/Forward Earnings ratio is 7.29, which indicates a rather cheap valuation of PFS.
Based on the Price/Forward Earnings ratio, PFS is valued cheaply inside the industry as 85.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.25. PFS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PFS is valued cheaper than 91.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 48.03% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y48.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.82%, PFS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, PFS pays a better dividend. On top of this PFS pays more dividend than 91.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
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
77.77% of the earnings are spent on dividend by PFS. This is not a sustainable payout ratio.
DP77.77%
EPS Next 2Y48.03%
EPS Next 3YN/A
16.77
+0.27 (+1.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.81%
Inst Owner Change-2.12%
Ins Owners2.82%
Ins Owner Change3.43%
Market Cap2.19B
Analysts78
Price Target21.68 (29.28%)
Short Float %2.42%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
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)-6.93%
PT rev (3m)-8.27%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 7.29 | ||
| P/S | 2.78 | ||
| P/FCF | 4.65 | ||
| P/OCF | 4.63 | ||
| P/B | 0.82 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.11
EY6.62%
EPS(NY)2.3
Fwd EY13.72%
FCF(TTM)3.61
FCFY21.52%
OCF(TTM)3.62
OCFY21.61%
SpS6.04
BVpS20.35
TBVpS14.15
PEG (NY)0.15
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
WACC11.96%
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 Y97.96%
EPS Next 2Y48.03%
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 Year25.5%
Revenue Next 2Y16.33%
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%