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Peoples Financial Services Corp. (PFIS)
NASDAQ:PFIS
US Market

Peoples Financial Services (PFIS) AI Stock Analysis

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Peoples Financial Services

(NASDAQ:PFIS)

Rating:79Outperform
Price Target:
$57.00
â–²(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 (PFIS) vs. SPDR S&P 500 ETF (SPY)

Peoples Financial Services Business Overview & Revenue Model

Company DescriptionPeoples 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 MoneyPeoples 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
78
Positive
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
74
Positive
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
81
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue255.40M229.80M164.00M123.66M107.75M110.77M
Gross Profit138.11M115.19M100.34M108.52M96.58M89.04M
EBITDA31.89M15.70M36.00M49.40M57.16M38.42M
Net Income20.04M8.50M27.38M38.09M43.52M29.35M
Balance Sheet
Total Assets5.00B5.09B3.74B3.55B3.37B2.88B
Cash, Cash Equivalents and Short-Term Investments328.39M323.18M441.59M515.57M554.83M341.10M
Total Debt144.31M155.58M75.59M148.49M35.71M97.77M
Total Liabilities4.52B4.62B3.40B3.24B3.03B2.57B
Stockholders Equity481.85M468.95M340.42M315.35M340.13M316.88M
Cash Flow
Free Cash Flow36.91M31.35M27.33M34.53M35.89M34.89M
Operating Cash Flow39.77M33.92M33.25M42.36M40.77M37.18M
Investing Cash Flow433.11M387.15M-25.75M-467.82M-440.10M-201.24M
Financing Cash Flow-505.75M-472.58M142.00M183.40M451.07M361.10M

Peoples Financial Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price52.39
Price Trends
50DMA
48.06
Positive
100DMA
46.50
Positive
200DMA
47.71
Positive
Market Momentum
MACD
1.28
Negative
RSI
64.22
Neutral
STOCH
83.45
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 Risk Analysis

Peoples Financial Services disclosed 44 risk factors in its most recent earnings report. Peoples Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Peoples Financial Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$526.52M24.774.88%4.69%51.62%-34.65%
76
Outperform
$459.79M15.107.44%3.10%22.16%-15.57%
75
Outperform
$456.57M16.147.25%4.09%11.46%-1.07%
75
Outperform
$515.99M15.6010.62%2.20%0.13%19.68%
70
Outperform
$511.51M15.644.48%4.33%10.00%2.81%
68
Neutral
$568.44M18.536.27%3.75%40.06%145.33%
64
Neutral
$6.48B11.457.19%225.06%23.75%4.96%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PFIS
Peoples Financial Services
52.39
11.79
29.04%
ACNB
ACNB
43.97
10.43
31.10%
AROW
Arrow Financial
27.65
2.35
9.29%
NFBK
Northfield Bancorp
11.99
2.89
31.76%
GNTY
Guaranty Bancshares
45.68
15.58
51.76%
ALRS
Alerus Financial
22.54
3.95
21.25%

Peoples Financial Services Corporate Events

M&A TransactionsBusiness Operations and Strategy
Peoples Financial Services Expands with Moosic Property Deal
Positive
Jun 27, 2025

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.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Peoples Financial Completes $85M Subordinated Notes Placement
Positive
Jun 6, 2025

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.

Business Operations and Strategy
Peoples Financial Services Updates Bylaws for Leadership Roles
Neutral
Jun 3, 2025

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.

Financial Disclosures
Peoples Financial Services Reports Strong Q1 2025 Results
Positive
Jun 3, 2025

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.

Private Placements and Financing
Peoples Financial Services Announces Notes Redemption
Neutral
May 30, 2025

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.

Executive/Board ChangesShareholder Meetings
Peoples Financial Services Holds Annual Shareholders Meeting
Neutral
May 12, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025