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

Fundamentals

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


Market Performance


7 Day Return

0.4%

NYSE:PFS

0.9%

US Mortgage

0.2%

US Market


1 Year Return

-7.9%

NYSE:PFS

-2.0%

US Mortgage

-0.7%

US Market

PFS underperformed the Mortgage industry which returned -0.3% over the past year.

PFS underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

PFSIndustryMarket
7 Day0.4%0.9%0.2%
30 Day-3.5%-1.9%-2.7%
90 Day-3.5%-0.4%1.6%
1 Year-3.8%-7.9%0.05%-2.0%1.6%-0.7%
3 Year26.3%13.1%32.3%23.5%40.0%30.9%
5 Year65.8%38.5%56.8%40.3%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

12.2x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Provident Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Provident Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Provident Financial Services is good value based on earnings compared to the US Mortgage industry average.

Provident Financial Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Provident Financial Services earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Provident Financial Services is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

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

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Provident Financial Services's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Provident Financial Services's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Provident Financial Services's revenue growth is positive but not above the United States of America market average.

Provident Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Provident Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Provident Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Provident Financial Services's year on year earnings growth rate has been positive over the past 5 years.

Provident Financial Services's 1-year earnings growth exceeds its 5-year average (35.7% vs 10.5%)

Provident Financial Services's earnings growth has exceeded the US Mortgage industry average in the past year (35.7% vs 32.9%).


Return on Equity

Provident Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Provident Financial Services used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Provident Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Provident Financial Services has an acceptable proportion of non-loan assets held.

Provident Financial Services has a sufficient allowance for bad loans.

Provident Financial Services's liabilities are made up of primarily low risk sources of funding.

Provident Financial Services's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Provident Financial Services are broadly funded by customer deposits.

Provident Financial Services has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.09%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Provident Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Provident Financial Services's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Provident Financial Services's salary, the management and board of directors tenure and is there insider trading?

9.9yrs

Average management tenure


CEO

Chris Martin (63yo)

9.9yrs

Tenure

US$2,194,752

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

Chris's remuneration is lower than average for companies of similar size in United States of America.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.9yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Provident Financial Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

65yo

Average Age

The tenure for the Provident Financial Services board of directors is about average.


Insider Trading

More shares have been bought than sold by Provident Financial Services individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$95,21431 Jul 19
Ursuline Foley
EntityIndividual
Shares4,000
Max PriceUS$23.81
SellUS$70,55017 Jun 19
Carlos Hernandez
EntityIndividual
Role
Lead Director
Lead Director
Shares3,000
Max PriceUS$23.52
BuyUS$12,01507 Jun 19
James Dunigan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$24.03
BuyUS$13,11809 May 19
James Dunigan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$26.24
SellUS$192,50711 Mar 19
Brian Giovinazzi
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Credit Officer of the Provident Bank
Shares7,340
Max PriceUS$26.78
SellUS$136,28605 Mar 19
Frank Fekete
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$27.26
BuyUS$27,29628 Feb 19
James Dunigan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$27.30
BuyUS$24,86502 Nov 18
James Dunigan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$24.87

Ownership Breakdown


Management Team

  • Chris Martin (63yo)

    Chairman

    • Tenure: 9.9yrs
    • Compensation: US$2.19m
  • Frank Muzio (66yo)

    Executive VP & Chief Accounting Officer of Provident Bank

    • Tenure: 8.6yrs
  • Tom Lyons (55yo)

    Senior EVP & CFO

    • Tenure: 9.9yrs
    • Compensation: US$1.10m
  • John Kuntz (64yo)

    Senior EVP

    • Tenure: 16.6yrs
    • Compensation: US$970.35k
  • Don Blum (63yo)

    Executive VP & Chief Lending Officer of the Provident Bank

    • Tenure: 17.7yrs
    • Compensation: US$853.62k
  • Janet Krasowski (67yo)

    Executive VP & Chief Human Resources Officer of the Provident Bank

    • Tenure: 13.3yrs
  • Brian Giovinazzi (65yo)

    Executive VP & Chief Credit Officer of the Provident Bank

    • Tenure: 12.3yrs
    • Compensation: US$856.29k
  • Len Gleason

    Senior VP & Investor Relations Officer

    • Tenure: 9.6yrs
  • Valerie Murray (44yo)

    Executive VP & Chief Wealth Management Officer of Provident Bank

    • Tenure: 2.5yrs
    • Compensation: US$775.37k
  • Sheila Leary

    Senior Vice President and BSA/AML Compliance Director

    • Tenure: 0.0yrs

Board Members

  • Chris Martin (63yo)

    Chairman

    • Tenure: 9.9yrs
    • Compensation: US$2.19m
  • Frank Fekete (68yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$181.48k
  • Carlos Hernandez (70yo)

    Lead Director

    • Tenure: 3.6yrs
    • Compensation: US$184.39k
  • Terry Gallagher (63yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$177.50k
  • Thomas Berry (72yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$160.00k
  • Laura Brooks (67yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$182.50k
  • Jim Dunigan (66yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$146.74k
  • John Pugliese (60yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$173.75k
  • Matt Harding (56yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$177.50k
  • Bob Adamo (64yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$168.78k

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$1.577b
  • Shares outstanding: 66.37m
  • 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 dep ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:55
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.