PROVIDENT FINANCIAL SERVICES (PFS)
US74386T1051 - Common Stock
We assign a fundamental rating of 3 out of 10 to PFS. PFS was compared to 404 industry peers in the Banks industry. PFS has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PFS is valued expensive at the moment. PFS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFS had positive earnings in the past year.
In the past year PFS had a positive cash flow from operations.
Each year in the past 5 years PFS has been profitable.
PFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PFS's Return On Assets of 0.32% is on the low side compared to the rest of the industry. PFS is outperformed by 83.29% of its industry peers.
PFS has a worse Return On Equity (2.99%) than 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 2.99% | ||
| ROIC | N/A |
ROA(3y)1.13%
ROA(5y)1.06%
ROE(3y)9.49%
ROE(5y)8.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PFS has a worse Profit Margin (15.03%) than 73.57% of its industry peers.
PFS's Profit Margin has declined in the last couple of years.
PFS does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 15.03% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y2.07%
PM growth 5Y-4.05%
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.
The number of shares outstanding for PFS has been increased compared to 1 year ago.
PFS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PFS has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PFS is 5.36, which is a neutral value as it means it would take PFS, 5.36 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.36, PFS is not doing good in the industry: 66.58% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.42 indicates that PFS is not too dependend on debt financing.
PFS has a worse Debt to Equity ratio (0.42) than 69.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.23%
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 -45.10% in the last year.
The Revenue has grown by 21.48% in the past year. This is a very strong growth!
Measured over the past years, PFS shows a small growth in Revenue. The Revenue has been growing by 5.93% on average per year.
EPS 1Y (TTM)-45.1%
EPS 3Y9.4%
EPS 5Y0%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)21.48%
Revenue growth 3Y7.57%
Revenue growth 5Y5.93%
Sales Q2Q%106.36%
3.2 Future
Based on estimates for the next years, PFS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
The Revenue is expected to grow by 27.12% on average over the next years. This is a very strong growth
EPS Next Y-34.89%
EPS Next 2Y8.77%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue Next Year51.75%
Revenue Next 2Y39.02%
Revenue Next 3Y27.12%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.11, which indicates a rather expensive current valuation of PFS.
Compared to the rest of the industry, the Price/Earnings ratio of PFS indicates a slightly more expensive valuation: PFS is more expensive than 71.32% of the companies listed in the same industry.
PFS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.20.
With a Price/Forward Earnings ratio of 9.94, the valuation of PFS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PFS is valued cheaper than 82.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, PFS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.77%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.48%, PFS is a good candidate for dividend investing.
PFS's Dividend Yield is rather good when compared to the industry average which is at 3.02. PFS pays more dividend than 88.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, PFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.59%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
95.32% of the earnings are spent on dividend by PFS. This is not a sustainable payout ratio.
PFS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.32%
EPS Next 2Y8.77%
EPS Next 3Y9.14%
PROVIDENT FINANCIAL SERVICES
NYSE:PFS (11/22/2024, 8:04:00 PM)
After market: 21.4 0 (0%)21.4
+0.55 (+2.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 9.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 2.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 15.03% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-45.1%
EPS 3Y9.4%
EPS 5Y
EPS Q2Q%
EPS Next Y-34.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.48%
Revenue growth 3Y7.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y