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.
Flawless balance sheet 6 star dividend payer.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StHow Does Provident Financial Services's (NYSE:PFS) P/E Compare To Its Industry, After The Share Price Drop?
3 weeks ago | Simply Wall StWhat Is Provident Financial Services's (NYSE:PFS) P/E Ratio After Its Share Price Tanked?
1 month ago | Simply Wall StShould You Buy Provident Financial Services, Inc. (NYSE:PFS) For Its Dividend?
Is Provident Financial Services undervalued compared to its fair value and its price relative to the market?
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).
How is Provident Financial Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has Provident Financial Services performed over the past 5 years?
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.
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
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%)
What is Provident Financial Services's current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Martin (63yo)
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.
|Senior EVP & CFO||10.58yrs||US$1.17m||0.29% $2.5m|
|Senior EVP||17.25yrs||US$1.05m||0.20% $1.7m|
|Senior VP & Investor Relations Officer||10.25yrs||no data||no data|
|Senior Vice President and BSA/AML Compliance Director||no data||no data||no data|
|Executive VP & Chief Human Resources Officer of the Provident Bank||13.92yrs||no data||0.10% $889.0k|
|Executive VP & Chief Risk Officer of Provident Bank||11.25yrs||no data||0.069% $598.9k|
|Senior VP & Deputy Lending Officer of the Provident Bank||2.17yrs||no data||no data|
|Executive VP & Chief Credit Officer of the Provident Bank||13yrs||US$856.29k||0.18% $1.5m|
Experienced Management: PFS's management team is seasoned and experienced (10.6 years average tenure).
|Independent Director||17.25yrs||US$177.92k||0.098% $845.4k|
|Lead Director||4.25yrs||US$181.06k||0.12% $1.1m|
|Independent Director||9.58yrs||US$168.11k||0.032% $274.5k|
|Independent Director||14.42yrs||US$159.99k||0.15% $1.3m|
|Independent Director||13.42yrs||US$184.99k||0.10% $861.5k|
|Independent Director||1.92yrs||US$170.91k||0.020% $175.1k|
|Independent Director||5.83yrs||US$174.99k||0.14% $1.2m|
|Independent Director||7.25yrs||US$189.36k||0.056% $483.3k|
|Independent Director||3.58yrs||US$169.21k||0.019% $167.1k|
Experienced Board: PFS's board of directors are considered experienced (8.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Provident Financial Services, Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Provident Financial Services, Inc.
- 239 Washington Street
- Jersey City
- New Jersey
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PFS||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 2003|
|PQ3||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 2003|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/03 05:07|
|End of Day Share Price||2020/04/02 00:00|
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.