PROVIDENT FINANCIAL SERVICES (PFS) Stock Fundamental Analysis
USA - NYSE:PFS - US74386T1051 - Common Stock
18.99 USD
+0.47 (+2.54%)
18.99 USD
0 (0%)
PFS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 391 industry peers in the Banks industry. PFS may be in some trouble as it scores bad on both profitability and health. An interesting combination arises when we look at growth and value: PFS is growing strongly while it also seems undervalued. 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.
PFS had positive earnings in each of the past 5 years.
PFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PFS has a Return On Assets (0.94%) which is in line with its industry peers.
With a Return On Equity value of 8.53%, PFS perfoms like the industry average, outperforming 51.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 8.53% | ||
| 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 27.51%. This is in the better half of the industry: PFS outperforms 72.12% of its industry peers.
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) | 27.51% | ||
| 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
Compared to 1 year ago, PFS has an improved debt to assets ratio.
2.2 Solvency
PFS has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
PFS has a better Debt to FCF ratio (0.87) than 73.15% of its industry peers.
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 (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.28%, which is quite impressive.
PFS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.71% yearly.
The Revenue has grown by 65.05% in the past year. This is a very strong growth!
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)51.28%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%600%
Revenue 1Y (TTM)65.05%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%32.22%
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 51.15% on average per year.
The Revenue is expected to grow by 18.37% on average over the next years. This is quite good.
EPS Next Y106.49%
EPS Next 2Y51.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.2%
Revenue Next 2Y18.37%
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
The Price/Earnings ratio is 10.73, which indicates a very decent valuation of PFS.
Based on the Price/Earnings ratio, PFS is valued a bit cheaper than the industry average as 65.98% of the companies are valued more expensively.
PFS is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
PFS is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
Based on the Price/Forward Earnings ratio, PFS is valued cheaper than 84.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PFS to the average of the S&P500 Index (22.92), we can say PFS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PFS is valued cheaper than 93.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.29 | ||
| 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 51.15% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y51.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.18%, PFS is a good candidate for dividend investing.
PFS's Dividend Yield is rather good when compared to the industry average which is at 3.53. PFS pays more dividend than 87.47% of the companies in the same industry.
PFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
5.2 History
The dividend of PFS decreases each year by -2.34%.
PFS has paid a dividend for at least 10 years, which is 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
55.00% of the earnings are spent on dividend by PFS. This is a bit on the high side, but may be sustainable.
DP55%
EPS Next 2Y51.15%
EPS Next 3YN/A
18.99
+0.47 (+2.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners72.17%
Inst Owner Change0.07%
Ins Owners2.96%
Ins Owner Change-11.96%
Market Cap2.48B
Revenue(TTM)839.40M
Net Income(TTM)230.94M
Analysts80
Price Target22.66 (19.33%)
Short Float %2.59%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend0.98
Dividend Growth(5Y)-2.34%
DP55%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.43%
Min EPS beat(2)3.22%
Max EPS beat(2)9.64%
EPS beat(4)2
Avg EPS beat(4)-9.66%
Min EPS beat(4)-27.02%
Max EPS beat(4)9.64%
EPS beat(8)5
Avg EPS beat(8)-18.54%
EPS beat(12)6
Avg EPS beat(12)-13.03%
EPS beat(16)10
Avg EPS beat(16)-7.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.67%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)-0.93%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)5
Avg Revenue beat(12)1.67%
Revenue beat(16)9
Avg Revenue beat(16)6.82%
PT rev (1m)0%
PT rev (3m)4.71%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)0.47%
EPS NY rev (3m)4.12%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 7.92 | ||
| P/S | 2.96 | ||
| P/FCF | 4.29 | ||
| P/OCF | 4.25 | ||
| P/B | 0.92 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.77
EY9.32%
EPS(NY)2.4
Fwd EY12.63%
FCF(TTM)4.43
FCFY23.33%
OCF(TTM)4.47
OCFY23.53%
SpS6.43
BVpS20.73
TBVpS14.6
PEG (NY)0.1
PEG (5Y)N/A
Graham Number28.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 8.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.51% | ||
| GM | N/A | ||
| FCFM | 68.93% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 10.48% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 250.55% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC11.58%
ROIC/WACCN/A
Cap/Depr(3y)46.38%
Cap/Depr(5y)72.83%
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)51.28%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%600%
EPS Next Y106.49%
EPS Next 2Y51.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)65.05%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%32.22%
Revenue Next Year26.2%
Revenue Next 2Y18.37%
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 1Y226.04%
FCF growth 3Y43.32%
FCF growth 5Y26.35%
OCF growth 1Y217.44%
OCF growth 3Y39.17%
OCF growth 5Y25.51%
PROVIDENT FINANCIAL SERVICES / PFS FAQ
What is the ChartMill fundamental rating of PROVIDENT FINANCIAL SERVICES (PFS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PFS.
What is the valuation status for PFS stock?
ChartMill assigns a valuation rating of 8 / 10 to PROVIDENT FINANCIAL SERVICES (PFS). This can be considered as Undervalued.
Can you provide the profitability details for PROVIDENT FINANCIAL SERVICES?
PROVIDENT FINANCIAL SERVICES (PFS) has a profitability rating of 3 / 10.
What is the financial health of PROVIDENT FINANCIAL SERVICES (PFS) stock?
The financial health rating of PROVIDENT FINANCIAL SERVICES (PFS) is 3 / 10.
Is the dividend of PROVIDENT FINANCIAL SERVICES sustainable?
The dividend rating of PROVIDENT FINANCIAL SERVICES (PFS) is 7 / 10 and the dividend payout ratio is 55%.