Peoples Financial Services (PFIS) AI Stock Analysis

• Market Cap: $526.52M
• Dividend Yield: 4.69%
• Average Volume (3M): 21.96K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.82
• Revenue Growth: 51.62%
• EPS Growth: -34.65%
• Country: US
• Employees: 511
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.51
• Shares Outstanding: 9,994,695
• 10 Day Avg. Volume: 31,126
• 30 Day Avg. Volume: 21,958
• PEG Ratio: 0.26
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.72
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 6.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $57.00 ▲(8.80%Upside)

Peoples Financial Services scores well due to its strong financial performance and bullish technical indicators, supported by positive corporate events. While the valuation suggests a potential overvaluation, the dividend yield offers a compensating benefit. The company's strategic initiatives and financial health position it well for future growth.

Peoples Financial Services Business Overview & Revenue Model

Company Description

Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services. The company accepts money market, NOW, savings, individual retirement, demand deposit, and certificates of deposit accounts. It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. In addition, the company offers investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial/IRA custodial, and corporate trust services, as well as pension and profit sharing plans. Further, it provides investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities and brokerage, and investor services. Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services. It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers through 28 full-service community banking offices located in Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, and Wyoming Counties of Pennsylvania; Middlesex County of New Jersey; and Broome County of New York. The company was founded in 1905 and is headquartered in Scranton, Pennsylvania.

How the Company Makes Money

Peoples Financial Services Corp. generates revenue primarily through interest income from its loan portfolio and investment securities. The company also earns money through non-interest income streams such as service charges on deposit accounts, fees from wealth management and financial advisory services, and transaction fees. Additionally, PFIS benefits from strategic partnerships with financial service providers to enhance its offerings and expand its market reach.

Peoples Financial Services Financial Statement Overview

Summary

Peoples Financial Services demonstrates strong financial health with excellent cash flow performance and robust revenue growth. Despite a decline in net profit margin, the company's low leverage and impressive cash management highlight its operational efficiency and potential for future growth.

Income Statement

Peoples Financial Services shows a strong gross profit margin with consistent growth over the years. The latest TTM data reveals a gross profit margin of 103.11%, indicating high profitability. However, the net profit margin for TTM is 10.25%, which is a decline from previous years, suggesting increased expenses or other factors impacting net income. Revenue growth is positive, with a notable increase from 2024 to TTM, reflecting robust business expansion. EBIT margin is moderate at 18.31%, and EBITDA margin is healthy at 19.00%, underscoring efficient operational performance.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.21, indicating low leverage, which is positive for financial stability. Return on Equity (ROE) is strong at 4.16% for TTM, representing effective use of equity to generate profits. The equity ratio is 9.64%, showing a modest proportion of total assets financed by equity, which may raise concerns about financial resilience amidst economic fluctuations.

Cash Flow

Cash flow statements demonstrate robust free cash flow growth, with the TTM free cash flow significantly increasing from the previous year. The operating cash flow to net income ratio is favorable at 1.98, reflecting strong cash conversion capabilities. Free cash flow to net income ratio is 1.84, further evidencing efficient cash generation relative to net income. These metrics suggest excellent liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	255.40M	229.80M	164.00M	123.66M	107.75M	110.77M
Gross Profit	138.11M	115.19M	100.34M	108.52M	96.58M	89.04M
EBITDA	31.89M	15.70M	36.00M	49.40M	57.16M	38.42M
Net Income	20.04M	8.50M	27.38M	38.09M	43.52M	29.35M
Balance Sheet
Total Assets	5.00B	5.09B	3.74B	3.55B	3.37B	2.88B
Cash, Cash Equivalents and Short-Term Investments	328.39M	323.18M	441.59M	515.57M	554.83M	341.10M
Total Debt	144.31M	155.58M	75.59M	148.49M	35.71M	97.77M
Total Liabilities	4.52B	4.62B	3.40B	3.24B	3.03B	2.57B
Stockholders Equity	481.85M	468.95M	340.42M	315.35M	340.13M	316.88M
Cash Flow
Free Cash Flow	36.91M	31.35M	27.33M	34.53M	35.89M	34.89M
Operating Cash Flow	39.77M	33.92M	33.25M	42.36M	40.77M	37.18M
Investing Cash Flow	433.11M	387.15M	-25.75M	-467.82M	-440.10M	-201.24M
Financing Cash Flow	-505.75M	-472.58M	142.00M	183.40M	451.07M	361.10M

Peoples Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFIS, the sentiment is Positive. The current price of 52.39 is above the 20-day moving average (MA) of 49.46, above the 50-day MA of 48.06, and above the 200-day MA of 47.71, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 83.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFIS.

Peoples Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFIS	79 Outperform	$526.52M	24.77	4.88%	4.69%	51.62%	-34.65%
ACNB	76 Outperform	$459.79M	15.10	7.44%	3.10%	22.16%	-15.57%
AROW	75 Outperform	$456.57M	16.14	7.25%	4.09%	11.46%	-1.07%
GNTY	75 Outperform	$515.99M	15.60	10.62%	2.20%	0.13%	19.68%
NFBK	70 Outperform	$511.51M	15.64	4.48%	4.33%	10.00%	2.81%
ALRS	68 Neutral	$568.44M	18.53	6.27%	3.75%	40.06%	145.33%
Sector *	64 Neutral	$6.48B	11.45	7.19%	225.06%	23.75%	4.96%

Peoples Financial Services Corporate Events

Peoples Financial Services Expands with Moosic Property Deal

On June 23, 2025, Peoples Security Bank and Trust Company entered into an agreement to purchase property in Moosic, Pennsylvania, for $19.5 million, with additional costs for repairs and improvements. The transaction, set to close by June 30, 2026, will see the bank assume all current leases of the property, impacting its operational footprint and potentially enhancing its market position.

Peoples Financial Completes $85M Subordinated Notes Placement

On June 6, 2025, Peoples Financial Services Corp. completed a private placement of $85 million in subordinated notes, which are intended to qualify as Tier 2 capital for regulatory purposes. The notes, bearing a fixed-to-floating interest rate, will help repay existing subordinated debt and support general corporate purposes. The transaction was oversubscribed, reflecting strong investor demand, and is seen as a strategic move to strengthen the company’s balance sheet and support growth following its merger with FNCB Bancorp, Inc.

Peoples Financial Services Updates Bylaws for Leadership Roles

On May 30, 2025, Peoples Financial Services Corp. announced that its board of directors approved amendments to the company’s bylaws. These changes clarify the roles of Chief Executive Officer and President, allowing different individuals to hold these positions, and specify their roles in the Executive Committee, particularly regarding voting rights and quorum requirements.

Peoples Financial Services Reports Strong Q1 2025 Results

In Q1 2025, Peoples Financial Services Corp. reported a net income of $15.0 million, with a return on average assets of 1.22% and a net interest margin of 3.50%. The company maintained a strong deposit base of $4.32 billion and a loan-to-deposit ratio of 92.5%. Asset quality remained robust with nonperforming assets at 0.47% of total assets. The company also reported a tangible common equity to tangible assets ratio of 7.63% and a tangible book value per share of $37.35, reflecting its solid capital and liquidity position.

Peoples Financial Services Announces Notes Redemption

On May 29, 2025, Peoples Financial Services Corp. announced the voluntary redemption of all $33,000,000 in principal amount of its 5.375% Fixed to Floating Subordinated Notes due 2030. The redemption, set for June 30, 2025, will result in no outstanding principal amount related to these notes, impacting the company’s financial obligations.

Peoples Financial Services Holds Annual Shareholders Meeting

On May 9, 2025, Peoples Financial Services Corp. held its annual shareholders meeting where key decisions were made regarding the company’s governance and operations. Shareholders elected five directors to serve until 2028, approved executive compensation, and ratified Baker Tilly US, LLP as the independent accounting firm for 2025. However, a proposal to amend the bylaws to limit the personal liability of directors and officers was not approved.

The most recent analyst rating on (PFIS) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Peoples Financial Services stock, see the PFIS Stock Forecast page.