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 established 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

2.3%

PFS

1.6%

US Mortgage

0.4%

US Market


1 Year Return

7.4%

PFS

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: PFS underperformed the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: PFS matched the US Market which returned 6.9% over the past year.


Shareholder returns

PFSIndustryMarket
7 Day2.3%1.6%0.4%
30 Day-2.1%1.0%-1.2%
90 Day1.1%4.0%-0.4%
1 Year12.1%7.4%17.7%15.2%9.3%6.9%
3 Year29.9%16.3%41.2%31.8%45.8%36.4%
5 Year74.2%45.6%71.5%53.4%62.9%45.1%

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?

12.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PFS ($24.88) is trading above our estimate of fair value ($14.89)

Significantly Undervalued: PFS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PFS is good value based on its PE Ratio (12.8x) compared to the Mortgage industry average (14.4x).

PE vs Market: PFS is good value based on its PE Ratio (12.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Provident Financial Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-2.6%

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 (-2.6% per year).

Earnings vs Market: PFS's earnings are forecast to decline over the next 3 years (-2.6% per year).

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

Revenue vs Market: PFS's revenue (2.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PFS's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PFS's Return on Equity is forecast to be low in 3 years time (7.7%).


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

Earnings Trend: PFS's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: PFS's earnings growth over the past year (35.7%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: PFS earnings growth over the past year (35.7%) exceeded the Mortgage industry 31.5%.


Return on Equity

High ROE: PFS's Return on Equity (9.1%) is considered low.


Return on Assets

ROA vs Industry: PFS has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PFS's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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 (0.53%)


Next Steps

Dividend

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

3.70%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PFS's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PFS's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (45.2%), 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 (57% payout ratio).


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?

10.1yrs

Average management tenure


CEO

Chris Martin (63yo)

10.1yrs

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

Compensation vs. Market: Chris's total compensation ($USD2.19M) is about average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.1yrs

Average Tenure

63.5yo

Average Age

Experienced Management: PFS's management team is seasoned and experienced (10.1 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

65yo

Average Age

Experienced Board: PFS's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$23,59304 Sep 19
James Dunigan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$23.59
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: 10.1yrs
    • Compensation: US$2.19m
  • Frank Muzio (66yo)

    Executive VP & Chief Accounting Officer of Provident Bank

    • Tenure: 8.8yrs
  • Tom Lyons (55yo)

    Senior EVP & CFO

    • Tenure: 10.1yrs
    • Compensation: US$1.10m
  • John Kuntz (64yo)

    Senior EVP

    • Tenure: 16.8yrs
    • Compensation: US$970.35k
  • Don Blum (63yo)

    Executive VP & Chief Lending Officer of the Provident Bank

    • Tenure: 17.8yrs
    • Compensation: US$853.62k
  • Janet Krasowski (67yo)

    Executive VP & Chief Human Resources Officer of the Provident Bank

    • Tenure: 13.4yrs
  • Brian Giovinazzi (65yo)

    Executive VP & Chief Credit Officer of the Provident Bank

    • Tenure: 12.5yrs
    • Compensation: US$856.29k
  • Len Gleason

    Senior VP & Investor Relations Officer

    • Tenure: 9.8yrs
  • Valerie Murray (44yo)

    Executive VP & Chief Wealth Management Officer of Provident Bank

    • Tenure: 2.7yrs
    • Compensation: US$775.37k
  • Sheila Leary

    Senior Vice President and BSA/AML Compliance Director

    • Tenure: 0yrs

Board Members

  • Chris Martin (63yo)

    Chairman

    • Tenure: 10.1yrs
    • Compensation: US$2.19m
  • Frank Fekete (68yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$181.48k
  • Carlos Hernandez (70yo)

    Lead Director

    • Tenure: 3.8yrs
    • Compensation: US$184.39k
  • Terry Gallagher (63yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$177.50k
  • Thomas Berry (72yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: US$160.00k
  • Laura Brooks (67yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$182.50k
  • Jim Dunigan (66yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$146.74k
  • John Pugliese (60yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$173.75k
  • Matt Harding (56yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$177.50k
  • Bob Adamo (64yo)

    Director

    • Tenure: 3.1yrs
    • 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$1.651b
  • 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 Analysis2019/10/18 23:44
End of Day Share Price2019/10/18 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.