PROVIDENT FINANCIAL SERVICES (PFS)
US74386T1051 - Common Stock
We assign a fundamental rating of 5 out of 10 to PFS. PFS was compared to 412 industry peers in the Banks industry. The financial health of PFS is average, but there are quite some concerns on its profitability. PFS is not valued too expensively and it also shows a decent growth rate. PFS also has an excellent dividend rating.
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.
In the past 5 years PFS has always been profitable.
In the past 5 years PFS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PFS (0.90%) is comparable to the rest of the industry.
PFS has a Return On Equity of 7.59%. This is in the lower half of the industry: PFS underperforms 64.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.59% | ||
| ROIC | N/A |
ROA(3y)1.13%
ROA(5y)1.06%
ROE(3y)9.49%
ROE(5y)8.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 26.79%, PFS is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
PFS's Profit Margin has declined in the last couple of years.
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) | 26.79% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y2.07%
PM growth 5Y-4.05%
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
The number of shares outstanding for PFS has been increased compared to 5 years ago.
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 0.50, which is an excellent value as it means it would take PFS, only 0.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PFS (0.50) is better than 83.50% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that PFS is not too dependend on debt financing.
PFS has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. PFS outperforms 82.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.38%
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 -22.55%.
Looking at the last year, PFS shows a decrease in Revenue. The Revenue has decreased by -5.16% in the last year.
Measured over the past years, PFS shows a small growth in Revenue. The Revenue has been growing by 5.93% on average per year.
EPS 1Y (TTM)-22.55%
EPS 3Y9.4%
EPS 5Y0%
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)-5.16%
Revenue growth 3Y7.57%
Revenue growth 5Y5.93%
Revenue growth Q2Q-13.28%
3.2 Future
Based on estimates for the next years, PFS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.57% on average per year.
The Revenue is expected to grow by 33.56% on average over the next years. This is a very strong growth
EPS Next Y-4.11%
EPS Next 2Y8.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year36.02%
Revenue Next 2Y33.56%
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.
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
With a Price/Earnings ratio of 7.48, the valuation of PFS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PFS indicates a somewhat cheap valuation: PFS is cheaper than 75.97% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. PFS is valued rather cheaply when compared to this.
PFS is valuated cheaply with a Price/Forward Earnings ratio of 7.80.
80.10% of the companies in the same industry are more expensive than PFS, based on the Price/Forward Earnings ratio.
PFS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
PFS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PFS is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PFS has a Yearly Dividend Yield of 7.07%, which is a nice return.
PFS's Dividend Yield is rather good when compared to the industry average which is at 3.91. PFS pays more dividend than 95.15% of the companies in the same industry.
PFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
5.2 History
The dividend of PFS has a limited annual growth rate of 3.59%.
PFS has been paying a dividend for at least 10 years, so it has a reliable track record.
PFS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.59%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
56.42% of the earnings are spent on dividend by PFS. This is a bit on the high side, but may be sustainable.
PFS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.42%
EPS Next 2Y8.57%
EPS Next 3YN/A
PROVIDENT FINANCIAL SERVICES
NYSE:PFS (4/17/2024, 7:18:47 PM)
After market: 13.57 -0.05 (-0.37%)13.62
-0.02 (-0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 26.79% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-22.55%
EPS 3Y9.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.16%
Revenue growth 3Y7.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y