NYSE:PFS

Stock Analysis Report

Provident Financial Services

Executive Summary

Provident Financial Services, Inc. operates as the holding company for Provident Bank that provides various banking services to individuals, families, and businesses in the United States.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PFS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

PFS

-11.6%

US Mortgage

-4.1%

US Market


1 Year Return

-50.9%

PFS

-33.4%

US Mortgage

-14.9%

US Market

Return vs Industry: PFS underperformed the US Mortgage industry which returned -33.4% over the past year.

Return vs Market: PFS underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

PFSIndustryMarket
7 Day-1.7%-11.6%-4.1%
30 Day-37.0%-34.6%-19.1%
90 Day-46.5%-39.2%-23.4%
1 Year-49.0%-50.9%-31.7%-33.4%-13.2%-14.9%
3 Year-41.7%-48.0%-24.7%-30.1%10.7%3.5%
5 Year-15.3%-29.4%-6.5%-16.9%28.5%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFS ($13.11) is trading below our estimate of fair value ($18.24)

Significantly Below Fair Value: PFS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PFS is good value based on its PE Ratio (7.5x) compared to the Mortgage industry average (10x).

PE vs Market: PFS is good value based on its PE Ratio (7.5x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: PFS is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: PFS is good value based on its PB Ratio (0.6x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Provident Financial Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFS's forecast earnings growth (4.2% per year) is above the savings rate (1.7%).

Earnings vs Market: PFS's earnings (4.2% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: PFS's earnings are forecast to grow, but not significantly.

Revenue vs Market: PFS's revenue (8.3% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: PFS's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFS's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Provident Financial Services performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFS has high quality earnings.

Growing Profit Margin: PFS's current net profit margins (32.3%) are lower than last year (35.3%).


Past Earnings Growth Analysis

Earnings Trend: PFS's earnings have grown by 9.8% per year over the past 5 years.

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

Earnings vs Industry: PFS had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Mortgage industry average (10.9%).


Return on Equity

High ROE: PFS's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Provident Financial Services'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: PFS has a low level of unsold assets or inventory.

Debt Coverage by Assets: PFS's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: PFS has an appropriate level of bad loans (0.55%)


Next Steps

Dividend

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

7.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFS's dividend (7.02%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: PFS's dividend (7.02%) is in the top 25% of dividend payers in the US market (5.7%)


Stability and Growth of Payments

Stable Dividend: PFS's dividends per share have been stable in the past 10 years.

Growing Dividend: PFS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), PFS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFS's dividends in 3 years are forecast to be covered by earnings (55.8% payout ratio).


Next Steps

Management

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

10.6yrs

Average management tenure


CEO

Chris Martin (63yo)

10.58s

Tenure

US$2,276,853

Compensation

Mr. Christopher P. Martin, also known as Chris, has served as Chairman since April 2010, President and Chief Executive Officer of Provident Financial Services, Inc. and Provident Bank since September 2009. ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.28M) is about average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Martin
Chairman10.58yrsUS$2.28m0.84% $7.2m
Thomas Lyons
Senior EVP & CFO10.58yrsUS$1.17m0.29% $2.5m
John Kuntz
Senior EVP17.25yrsUS$1.05m0.20% $1.7m
Valerie Murray
President3.17yrsUS$831.93k0.062% $535.7k
Leonard Gleason
Senior VP & Investor Relations Officer10.25yrsno datano data
Sheila Leary
Senior Vice President and BSA/AML Compliance Directorno datano datano data
Janet Krasowski
Executive VP & Chief Human Resources Officer of the Provident Bank13.92yrsno data0.10% $889.0k
James Christy
Executive VP & Chief Risk Officer of Provident Bank11.25yrsno data0.069% $598.9k
Larry Favre
Senior VP & Deputy Lending Officer of the Provident Bank2.17yrsno datano data
Brian Giovinazzi
Executive VP & Chief Credit Officer of the Provident Bank13yrsUS$856.29k0.18% $1.5m

10.6yrs

Average Tenure

63yo

Average Age

Experienced Management: PFS's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Martin
Chairman10.58yrsUS$2.28m0.84% $7.2m
Frank Fekete
Independent Director17.25yrsUS$177.92k0.098% $845.4k
Carlos Hernandez
Lead Director4.25yrsUS$181.06k0.12% $1.1m
Terence Gallagher
Independent Director9.58yrsUS$168.11k0.032% $274.5k
Thomas Berry
Independent Director14.42yrsUS$159.99k0.15% $1.3m
Laura Brooks
Independent Director13.42yrsUS$184.99k0.10% $861.5k
James Dunigan
Independent Director1.92yrsUS$170.91k0.020% $175.1k
John Pugliese
Independent Director5.83yrsUS$174.99k0.14% $1.2m
Matthew Harding
Independent Director7.25yrsUS$189.36k0.056% $483.3k
Robert Adamo
Independent Director3.58yrsUS$169.21k0.019% $167.1k

8.4yrs

Average Tenure

65yo

Average Age

Experienced Board: PFS's board of directors are considered experienced (8.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Provident Financial Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Provident Financial Services, Inc.
  • Ticker: PFS
  • Exchange: NYSE
  • Founded: 1839
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$862.982m
  • Shares outstanding: 65.83m
  • Website: https://www.provident.bank

Number of Employees


Location

  • Provident Financial Services, Inc.
  • 239 Washington Street
  • Jersey City
  • New Jersey
  • 7302
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFSNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2003
PQ3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2003

Biography

Provident Financial Services, Inc. operates as the holding company for Provident Bank that provides various banking services to individuals, families, and businesses in the United States. The company’s deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA, and KEOGH products. Its loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, and marine loans. The company also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, it provides trust and estate administration services; and asset management services comprising investment management, asset allocation, trust and estate administration, financial planning, tax compliance and planning, and family office services to individuals, municipalities, non-profits, corporations, and pension funds. Further, the company sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. As of December 31, 2018, it operated 84 full-service branch offices in northern and central New Jersey, as well as in Pennsylvania. The company was founded in 1839 and is headquartered in Jersey City, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 05:07
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.