PROVIDENT FINANCIAL SERVICES (PFS) Stock Fundamental Analysis
NYSE:PFS - New York Stock Exchange, Inc. - US74386T1051 - Common Stock - Currency: USD
PFS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. PFS may be in some trouble as it scores bad on both profitability and health. PFS has a decent growth rate and is not valued too expensively. PFS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFS had positive earnings in the past year.
PFS had a positive operating cash flow in the past year.
Each year in the past 5 years PFS has been profitable.
PFS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PFS has a Return On Assets of 0.39%. This is in the lower half of the industry: PFS underperforms 79.70% of its industry peers.
The Return On Equity of PFS (3.60%) is worse than 83.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 3.6% | ||
| ROIC | N/A |
ROA(3y)0.89%
ROA(5y)0.93%
ROE(3y)7.68%
ROE(5y)7.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PFS's Profit Margin of 15.63% is on the low side compared to the rest of the industry. PFS is outperformed by 74.44% of its industry peers.
In the last couple of years the Profit Margin of PFS has declined.
The Operating Margin and Gross Margin are not available for PFS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 15.63% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-23.46%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PFS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, PFS has more shares outstanding
The number of shares outstanding for PFS has been increased compared to 5 years ago.
The debt/assets ratio for PFS is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of PFS is 4.68, which is a neutral value as it means it would take PFS, 4.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PFS (4.68) is worse than 62.16% of its industry peers.
PFS has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PFS (0.41) is worse than 73.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.68 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.17%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for PFS have decreased strongly by -42.31% in the last year.
PFS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.71% yearly.
PFS shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.95%.
PFS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.94% yearly.
EPS 1Y (TTM)-42.31%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%-15.91%
Revenue 1Y (TTM)44.95%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%89.73%
3.2 Future
Based on estimates for the next years, PFS will show a very strong growth in Earnings Per Share. The EPS will grow by 48.79% on average per year.
Based on estimates for the next years, PFS will show a quite strong growth in Revenue. The Revenue will grow by 16.43% on average per year.
EPS Next Y98.31%
EPS Next 2Y48.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.11%
Revenue Next 2Y16.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.28, PFS is valued on the expensive side.
Based on the Price/Earnings ratio, PFS is valued a bit more expensive than 73.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of PFS to the average of the S&P500 Index (29.63), we can say PFS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 8.71, the valuation of PFS can be described as reasonable.
86.47% of the companies in the same industry are more expensive than PFS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PFS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFS indicates a somewhat cheap valuation: PFS is cheaper than 68.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PFS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PFS's earnings are expected to grow with 48.79% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y48.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PFS has a Yearly Dividend Yield of 5.25%, which is a nice return.
PFS's Dividend Yield is rather good when compared to the industry average which is at 3.18. PFS pays more dividend than 92.23% of the companies in the same industry.
PFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
5.2 History
The dividend of PFS has a limited annual growth rate of 3.59%.
PFS has been paying a dividend for at least 10 years, so it has a reliable track record.
PFS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.59%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
PFS pays out 91.31% of its income as dividend. This is not a sustainable payout ratio.
PFS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP91.31%
EPS Next 2Y48.79%
EPS Next 3YN/A
18.14
-0.16 (-0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.81%
Inst Owner Change-92.95%
Ins Owners2.82%
Ins Owner Change-2.09%
Market Cap2.37B
Analysts78
Price Target23.63 (30.26%)
Short Float %2.39%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
Yearly Dividend0.96
Dividend Growth(5Y)3.59%
DP91.31%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-77.62%
Min EPS beat(2)-130.77%
Max EPS beat(2)-24.48%
EPS beat(4)2
Avg EPS beat(4)-35.11%
Min EPS beat(4)-130.77%
Max EPS beat(4)7.83%
EPS beat(8)4
Avg EPS beat(8)-17.74%
EPS beat(12)7
Avg EPS beat(12)-9.35%
EPS beat(16)11
Avg EPS beat(16)-0.47%
Revenue beat(2)1
Avg Revenue beat(2)7.5%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)18.19%
Revenue beat(4)3
Avg Revenue beat(4)3.94%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)18.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.26%
Revenue beat(12)8
Avg Revenue beat(12)7.67%
Revenue beat(16)12
Avg Revenue beat(16)11.35%
PT rev (1m)-4.14%
PT rev (3m)-1%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-0.1%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-3.3%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 8.71 | ||
| P/S | 3.92 | ||
| P/FCF | 10.34 | ||
| P/OCF | 10.14 | ||
| P/B | 0.9 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.05
EY5.79%
EPS(NY)2.08
Fwd EY11.48%
FCF(TTM)1.76
FCFY9.67%
OCF(TTM)1.79
OCFY9.86%
SpS4.63
BVpS20.09
TBVpS13.66
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 3.6% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 15.63% | ||
| GM | N/A | ||
| FCFM | 37.94% |
ROA(3y)0.89%
ROA(5y)0.93%
ROE(3y)7.68%
ROE(5y)7.78%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-23.46%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.68 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 14.14% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 242.82% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC9.17%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.31%
EPS 3Y-21.73%
EPS 5Y-9.71%
EPS Q2Q%-15.91%
EPS Next Y98.31%
EPS Next 2Y48.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.95%
Revenue growth 3Y15.34%
Revenue growth 5Y13.94%
Sales Q2Q%89.73%
Revenue Next Year26.11%
Revenue Next 2Y16.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.69%
OCF growth 3YN/A
OCF growth 5YN/A