PFS

Provident Financial ServicesNYSE:PFS Stock Report

Market Cap

US$1.7b

7D

1.0%

1Y

73.0%

Updated

19 Sep, 2021

Data

Company Financials +
PFS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends6/6

PFS Overview

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

Provident Financial Services Competitors

New York Community Bancorp

NYSE:NYCB

US$5.9b

WSFS Financial

NasdaqGS:WSFS

US$2.1b

Northwest Bancshares

NasdaqGS:NWBI

US$1.6b

Meridian Bancorp

NasdaqGS:EBSB

US$987.7m

Price History & Performance

Summary of all time highs, changes and price drops for Provident Financial Services
Historical stock prices
Current Share PriceUS$22.23
52 Week HighUS$11.76
52 Week LowUS$25.70
Beta1.03
1 Month Change1.55%
3 Month Change-6.36%
1 Year Change73.00%
3 Year Change-10.87%
5 Year Change4.71%
Change since IPO43.42%

Recent News & Updates

Aug 27

Provident Financial: High Dividend Yield With Loan-Growth Backed, Positive Earnings Outlook

Normalization of prepayments in a stable-to-rising interest-rate environment will support loan growth. Further, strength in markets will boost loans. The provision expense will likely remain subdued due to the economic recovery. PFS is offering a high dividend yield. Further, the dividend appears quite secure. The year-end target price suggests a decent upside from the current market price.

Aug 03
Provident Financial Services (NYSE:PFS) Will Pay A Dividend Of US$0.23

Provident Financial Services (NYSE:PFS) Will Pay A Dividend Of US$0.23

The board of Provident Financial Services, Inc. ( NYSE:PFS ) has announced that it will pay a dividend of US$0.23 per...

Shareholder Returns

PFSUS MortgageUS Market
7D1.0%0.6%-0.6%
1Y73.0%14.0%33.8%

Return vs Industry: PFS exceeded the US Mortgage industry which returned 14% over the past year.

Return vs Market: PFS exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is PFS's price volatile compared to industry and market?
PFS volatility
PFS Beta1.03
Industry Beta1.13
Market Beta1

Stable Share Price: PFS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PFS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18391,178Chris Martinhttps://www.provident.bank

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and 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 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, marine loans, personal loans and unsecured lines of credit, and auto and recreational vehicle loans.

Provident Financial Services Fundamentals Summary

How do Provident Financial Services's earnings and revenue compare to its market cap?
PFS fundamental statistics
Market CapUS$1.70b
Earnings (TTM)US$161.06m
Revenue (TTM)US$457.10m

10.5x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFS income statement (TTM)
RevenueUS$457.10m
Cost of RevenueUS$0
Gross ProfitUS$457.10m
ExpensesUS$296.04m
EarningsUS$161.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.13
Gross Margin100.00%
Net Profit Margin35.23%
Debt/Equity Ratio47.9%

How did PFS perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

43%

Payout Ratio

Valuation

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

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFS ($22.23) is trading below our estimate of fair value ($31.78)

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 (10.5x) compared to the US Mortgage industry average (12x).

PE vs Market: PFS is good value based on its PE Ratio (10.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFS's PB Ratio (1x) is in line with the US Mortgage industry average.


Future Growth

How is Provident Financial Services forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFS's earnings are forecast to decline over the next 3 years (-7.9% per year).

Earnings vs Market: PFS's earnings are forecast to decline over the next 3 years (-7.9% per year).

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

Revenue vs Market: PFS's revenue (1.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PFS's revenue (1.6% 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 (8.1%).


Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFS has high quality earnings.

Growing Profit Margin: PFS's current net profit margins (35.2%) are higher than last year (26.5%).


Past Earnings Growth Analysis

Earnings Trend: PFS's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: PFS's earnings growth over the past year (86%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: PFS earnings growth over the past year (86%) exceeded the Mortgage industry 36.9%.


Return on Equity

High ROE: PFS's Return on Equity (9.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: PFS's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: PFS has a sufficient allowance for bad loans (101%).

Low Risk Liabilities: 92% of PFS's liabilities are made up of primarily low risk sources of funding.

Loan Level: PFS has an appropriate level of Loans to Assets ratio (72%).

Low Risk Deposits: PFS's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: PFS has an appropriate level of bad loans (0.8%).


Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFS's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: PFS's dividend (4.14%) is in the top 25% of dividend payers in the US market (3.6%)


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 reasonably low payout ratio (43.2%), PFS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFS's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Chris Martin (65 yo)

12yrs

Tenure

US$2,922,694

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.92M) is about average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PFS's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: PFS's board of directors are considered experienced (6.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


Top Shareholders

Company Information

Provident Financial Services, Inc.'s 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$1.698b
  • Shares outstanding: 76.38m
  • Website: https://www.provident.bank

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.