Provident Financial Services
Market Cap
US$1.6b
Last Updated
2021/04/16 22:40 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PFS's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.9%
PFS
-1.5%
US Mortgage
1.3%
US Market
1 Year Return
74.4%
PFS
72.9%
US Mortgage
53.9%
US Market
Return vs Industry: PFS exceeded the US Mortgage industry which returned 72.9% over the past year.
Return vs Market: PFS exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| PFS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | -1.5% | 1.3% |
| 30 Day | 2.3% | -6.4% | 3.3% |
| 90 Day | 21.2% | 10.8% | 8.9% |
| 1 Year | 85.7%74.4% | 78.6%72.9% | 56.6%53.9% |
| 3 Year | 2.9%-10.6% | 33.6%23.6% | 64.4%53.6% |
| 5 Year | 39.7%13.2% | 77.2%54.2% | 120.4%95.7% |
Long-Term 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 St
Should You Or Shouldn't You: A Dividend Analysis on Provident Financial Services, Inc. (NYSE:PFS)1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Provident Financial Services, Inc. (NYSE:PFS)Valuation
Is Provident Financial Services undervalued compared to its fair value and its price relative to the market?
16.7x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PFS ($23.28) is trading above our estimate of fair value ($20.14)
Significantly Below Fair Value: PFS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PFS is poor value based on its PE Ratio (16.7x) compared to the US Mortgage industry average (13.8x).
PE vs Market: PFS is good value based on its PE Ratio (16.7x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: PFS is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: PFS's PB Ratio (1.1x) 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 5 analysts?
10.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PFS's forecast earnings growth (10.7% per year) is above the savings rate (2%).
Earnings vs Market: PFS's earnings (10.7% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: PFS's earnings are forecast to grow, but not significantly.
Revenue vs Market: PFS's revenue (8.6% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: PFS's revenue (8.6% 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 (7.6%).
Past Performance
How has Provident Financial Services performed over the past 5 years?
4.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PFS has high quality earnings.
Growing Profit Margin: PFS's current net profit margins (27.3%) are lower than last year (32.3%).
Past Earnings Growth Analysis
Earnings Trend: PFS's earnings have grown by 4% 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 (-13.8%) over the past year, making it difficult to compare to the Mortgage industry average (6.5%).
Return on Equity
High ROE: PFS's Return on Equity (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 (8x) is low.
Allowance for Bad Loans: PFS has a sufficient allowance for bad loans (117%).
Low Risk Liabilities: 87% 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 (75%).
Low Risk Deposits: PFS's Loans to Deposits ratio (99%) is appropriate.
Level of Bad Loans: PFS has an appropriate level of bad loans (0.9%).
Dividend
What is Provident Financial Services's current dividend yield, its reliability and sustainability?
3.95%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PFS's dividend (3.95%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: PFS's dividend (3.95%) is in the top 25% of dividend payers in the US market (3.46%)
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 (66%), 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 (56.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Chris Martin (64 yo)
11.58yrs
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 ($USD3.79M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: PFS's management team is considered experienced (4.2 years average tenure).
Board Members
Experienced Board: PFS's board of directors are considered experienced (7.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PFS insiders have only sold shares 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 19.1%.
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$1.619b
- Shares outstanding: 76.65m
- Website: https://www.provident.bank
Number of Employees
Location
- Provident Financial Services, Inc.
- 239 Washington Street
- Jersey City
- New Jersey
- 7302
- United States
Listings
Biography
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....
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:40 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.