NasdaqCM:PCSB

Stock Analysis Report

Executive Summary

PCSB Financial Corporation operates as the bank holding company for PCSB Bank that provides financial services to individuals and businesses in Putnam, Southern Dutchess, Rockland, and Westchester Counties in New York.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has PCSB Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCSB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

PCSB

-1.0%

US Mortgage

-1.1%

US Market


1 Year Return

-2.9%

PCSB

4.9%

US Mortgage

17.9%

US Market

Return vs Industry: PCSB underperformed the US Mortgage industry which returned 4.9% over the past year.

Return vs Market: PCSB underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

PCSBIndustryMarket
7 Day-1.2%-1.0%-1.1%
30 Day1.0%-1.2%1.4%
90 Day-2.8%-3.0%6.9%
1 Year-2.1%-2.9%7.4%4.9%20.3%17.9%
3 Yearn/a18.7%10.2%47.8%38.3%
5 Yearn/a58.4%40.9%71.9%53.0%

Price Volatility Vs. Market

How volatile is PCSB Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PCSB Financial undervalued compared to its fair value and its price relative to the market?

36.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PCSB ($19.99) is trading above our estimate of fair value ($1.95)

Significantly Below Fair Value: PCSB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PCSB is poor value based on its PE Ratio (36.2x) compared to the Mortgage industry average (13.6x).

PE vs Market: PCSB is poor value based on its PE Ratio (36.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: PCSB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PCSB is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is PCSB Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCSB's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: PCSB's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: PCSB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PCSB's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PCSB's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PCSB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PCSB Financial performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCSB has high quality earnings.

Growing Profit Margin: PCSB's current net profit margins (19%) are lower than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: PCSB's earnings have grown significantly by 38% per year over the past 5 years.

Accelerating Growth: PCSB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PCSB had negative earnings growth (-6.9%) over the past year, making it difficult to compare to the Mortgage industry average (11.1%).


Return on Equity

High ROE: PCSB's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PCSB Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PCSB has a low level of unsold assets or inventory.

Debt Coverage by Assets: PCSB's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: PCSB's level of assets compared to its equity is low.

Allowance for Bad Loans: PCSB has a sufficient allowance for bad loans.

Low Risk Liabilities: PCSB's liabilities are made up of primarily low risk sources of funding.

Loan Level: PCSB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PCSB's loans are broadly funded by customer deposits.

Level of Bad Loans: PCSB has an appropriate level of bad loans (0.14%)


Next Steps

Dividend

What is PCSB Financial's current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PCSB's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PCSB's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: PCSB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: PCSB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PCSB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PCSB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Joseph Roberto (66yo)

3.1yrs

Tenure

US$4,750,767

Compensation

Mr. Joseph D. Roberto has been the Chairman, Chief Executive Officer and President of PCSB Bank and PCSB Financial Corporation since January 2012 and 2017 respectively. Mr. Roberto served as Chief Financia ...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD4.75M) is above average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Joseph's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Roberto
Chairman3.1yrsUS$4.75m1.11% $3.5m
Scott Nogles
Executive VP & COO0.6yrsUS$2.72m0.64% $2.0m
Michael Goldrick
Executive VP & Chief Lending Officer3.1yrsUS$1.52m0.38% $1.2m
Jeffrey Helf
Senior VP & CFO0.6yrsno data0.16% $506.3k
Carol Bray
Chief Information Officer and Senior Vice President4.1yrsno data0.32% $1.0m
David McNamara
Senior Vice President of Compliance and CRA Officer5.7yrsno data0.11% $337.2k
Clifford Weber
Chief Risk Officer4.1yrsno data0.37% $1.2m
Ruth Leser
Senior Vice President and Director of Human Resources24.1yrsno data0.28% $893.8k
Richard Petrone
Chief Credit Officer and Senior Vice President7.5yrsno data0.17% $538.2k
Dominick Petramale
Senior VP0yrsno data0.090% $284.5k

4.1yrs

Average Tenure

55yo

Average Age

Experienced Management: PCSB's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Roberto
Chairman3.1yrsUS$4.75m1.11% $3.5m
Willard Hill
Independent Director3.1yrsUS$620.79k0.13% $399.8k
Matthew McCrosson
Independent Director3.1yrsUS$620.81k0.23% $739.7k
William Cuddy
Independent Director3.1yrsUS$618.92k0.31% $979.5k
Michael Weber
Independent Director3.1yrsUS$620.79k0.18% $562.7k
Kevin Dwyer
Independent Director3.1yrsUS$620.79k0.16% $509.7k
Jeffrey Kellogg
Independent Director3.1yrsUS$620.79k0.18% $579.7k
Robert Lusardi
Director3.1yrsUS$621.43k0.26% $829.6k
Karl Thimm
Independent Director3.1yrsUS$620.79k0.20% $642.7k
Richard Weiss
Vice Chairman & Lead Independent Director 3.1yrsUS$712.62k0.20% $647.2k

3.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: PCSB's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PCSB insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PCSB Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PCSB Financial Corporation
  • Ticker: PCSB
  • Exchange: NasdaqCM
  • Founded: 1866
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$317.463m
  • Shares outstanding: 15.88m
  • Website: https://www.pcsbbank.com

Number of Employees


Location

  • PCSB Financial Corporation
  • 2651 Strang Boulevard
  • Suite 100
  • Yorktown Heights
  • New York
  • 10598
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCSBNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 2017

Biography

PCSB Financial Corporation operates as the bank holding company for PCSB Bank that provides financial services to individuals and businesses in Putnam, Southern Dutchess, Rockland, and Westchester Counties in New York. The company’s deposit products include non-interest bearing demand, NOW, money market, escrow, and savings accounts, as well as time deposits. It also provides commercial real estate, multi-family residential real estate, commercial business, construction, residential mortgage, and consumer and deposit overdraft loans, as well as home equity lines of credit, insurance products, and securities. PCSB Financial Corporation offers its services from executive offices/headquarters and 15 banking offices. The company was founded in 1866 and is headquartered in Yorktown Heights, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:48
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.