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 398 industry peers in the Banks industry. PFS has a bad profitability rating. Also its financial health evaluation is rather negative. PFS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PFS was profitable.
In the past year PFS had a positive cash flow from operations.
In the past 5 years PFS has always been profitable.
In the past 5 years PFS always reported a positive cash flow from operatings.
1.2 Ratios
PFS's Return On Assets of 0.48% is on the low side compared to the rest of the industry. PFS is outperformed by 74.12% of its industry peers.
PFS has a worse Return On Equity (4.44%) than 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 4.44% | ||
| 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
Looking at the Profit Margin, with a value of 16.63%, PFS is doing worse than 72.36% of the companies in the same industry.
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) | 16.63% | ||
| 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.
PFS has more shares outstanding than it did 1 year ago.
PFS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PFS has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PFS is 1.21, which is an excellent value as it means it would take PFS, only 1.21 years of fcf income to pay off all of its debts.
PFS has a better Debt to FCF ratio (1.21) than 70.60% of its industry peers.
PFS has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
PFS has a Debt to Equity ratio (0.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.9%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.31%.
Measured over the past years, PFS shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.71% on average per year.
The Revenue has grown by 44.95% in the past year. This is a very strong growth!
Measured over the past years, PFS shows a quite strong growth in Revenue. The Revenue has been growing by 13.94% on average per year.
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
The Earnings Per Share is expected to grow by 48.79% on average over the next years. This is a very strong growth
PFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.34% yearly.
EPS Next Y98.31%
EPS Next 2Y48.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.04%
Revenue Next 2Y16.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 16.08 indicates a correct 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 71.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PFS to the average of the S&P500 Index (28.64), we can say PFS is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.11, which indicates a very decent valuation of PFS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PFS indicates a rather cheap valuation: PFS is cheaper than 82.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.44. PFS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PFS is valued cheaper than 92.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.18 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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)0.16
PEG (5Y)N/A
EPS Next 2Y48.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PFS has a Yearly Dividend Yield of 6.20%, which is a nice return.
Compared to an average industry Dividend Yield of 3.68, PFS pays a better dividend. On top of this PFS pays more dividend than 92.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, PFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
5.2 History
The dividend of PFS decreases each year by -2.34%.
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)-2.34%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
PFS pays out 87.39% of its income as dividend. This is not a sustainable payout ratio.
DP87.39%
EPS Next 2Y48.79%
EPS Next 3YN/A
16.88
+0.51 (+3.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.81%
Inst Owner Change0.55%
Ins Owners2.82%
Ins Owner Change0.65%
Market Cap2.20B
Analysts78
Price Target23.46 (38.98%)
Short Float %2.19%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
Yearly Dividend0.98
Dividend Growth(5Y)-2.34%
DP87.39%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.75%
Min EPS beat(2)-27.02%
Max EPS beat(2)-24.48%
EPS beat(4)1
Avg EPS beat(4)-43.83%
Min EPS beat(4)-130.77%
Max EPS beat(4)6.97%
EPS beat(8)3
Avg EPS beat(8)-21.58%
EPS beat(12)6
Avg EPS beat(12)-11.97%
EPS beat(16)10
Avg EPS beat(16)-4.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)-2.62%
Revenue beat(4)2
Avg Revenue beat(4)3.1%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)18.19%
Revenue beat(8)3
Avg Revenue beat(8)-2.35%
Revenue beat(12)7
Avg Revenue beat(12)5.57%
Revenue beat(16)11
Avg Revenue beat(16)9.66%
PT rev (1m)-0.72%
PT rev (3m)-4.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 8.11 | ||
| P/S | 3.17 | ||
| P/FCF | 5.18 | ||
| P/OCF | 5.17 | ||
| P/B | 0.85 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.05
EY6.22%
EPS(NY)2.08
Fwd EY12.34%
FCF(TTM)3.26
FCFY19.3%
OCF(TTM)3.27
OCFY19.36%
SpS5.32
BVpS19.93
TBVpS13.66
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 4.44% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 16.63% | ||
| GM | N/A | ||
| FCFM | 61.19% |
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 | 0.2 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 3.15% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 367.95% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC11.9%
ROIC/WACCN/A
Cap/Depr(3y)46.38%
Cap/Depr(5y)72.83%
Cap/Sales(3y)1.2%
Cap/Sales(5y)2%
Profit Quality(3y)201.95%
Profit Quality(5y)157.77%
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 Year26.04%
Revenue Next 2Y16.34%
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 1Y156.21%
FCF growth 3Y43.32%
FCF growth 5Y26.35%
OCF growth 1Y145.9%
OCF growth 3Y39.17%
OCF growth 5Y25.51%