NOT FOR DISTRIBUTION
Header cover image

Provident Financial Services

Market Cap

US$1.8b

Last Updated

2021/04/12 22:25 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


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

1.9%

PFS

-0.2%

US Mortgage

2.1%

US Market


1 Year Return

65.1%

PFS

52.8%

US Mortgage

56.3%

US Market

Return vs Industry: PFS matched the US Mortgage industry which returned 52.8% over the past year.

Return vs Market: PFS underperformed the US Market which returned 56.3% over the past year.


Shareholder returns

PFSIndustryMarket
7 Day1.9%-0.2%2.1%
30 Day-2.7%-5.9%2.4%
90 Day17.2%8.3%6.8%
1 Year75.8%65.1%57.4%52.8%59.1%56.3%
3 Year2.2%-11.2%36.6%25.5%65.7%55.1%
5 Year39.3%12.9%82.8%57.0%122.3%97.7%

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

Valuation

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

16.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PFS ($23.08) is trading above our estimate of fair value ($19.91)

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 (16.6x) compared to the US Mortgage industry average (13.8x).

PE vs Market: PFS is good value based on its PE Ratio (16.6x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: PFS is poor value based on its PEG Ratio (1.5x)


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 (18.6% 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 (9.9% 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 (4.7%).


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?

3.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFS's dividend (3.99%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: PFS's dividend (3.99%) is in the top 25% of dividend payers in the US market (3.5%)


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 ($USD2.92M) is about average for companies of similar size in the US market ($USD3.67M).

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$1.769b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/12 22:25
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
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.