Peoples Financial Services (PFIS) AI Stock Analysis

• Market Cap: $533.42M
• Dividend Yield: 4.63%
• Average Volume (3M): 26.60K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.82
• Revenue Growth: 67.70%
• EPS Growth: 39.18%
• Country: US
• Employees: 511
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 1.69
• Shares Outstanding: 9,994,696
• 10 Day Avg. Volume: 35,825
• 30 Day Avg. Volume: 26,596
• PEG Ratio: -0.69
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 13.93
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 22.22
• 1Y Price Target: $56.00
• Price Target Upside: 4.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $56.00 ▲(4.93% Upside)

Peoples Financial Services scores well due to strong financial performance and strategic corporate events that enhance growth prospects. The valuation is fair, and technical indicators suggest stability. The absence of earnings call data does not impact the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong business expansion and market demand, supporting long-term financial health and competitiveness.

Strategic Expansion

The merger with FNCB expands PFIS's market presence and operational scale, providing a stronger competitive position and growth opportunities.

Balance Sheet Strength

Strengthened capital ratios improve financial stability and support future growth, enhancing the company's ability to withstand economic fluctuations.

Negative Factors

Net Profit Margin Decline

A declining net profit margin suggests rising costs or inefficiencies, which could pressure profitability if not addressed.

Equity Ratio Concerns

A lower equity ratio may indicate vulnerability to economic downturns, potentially impacting financial resilience and stability.

Increased Financial Obligations

Redeeming notes increases short-term financial obligations, which could strain liquidity if not managed carefully.

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

PFIS generates revenue through multiple streams, including interest income from loans and mortgages, fees from account services, and commissions from investment transactions. The company earns interest income primarily by lending to consumers and businesses, which is a significant part of its revenue model. Additionally, PFIS collects service fees for account maintenance, ATM usage, and various financial advisory services. Investment management fees also contribute to earnings, as clients are charged for portfolio management and financial planning services. Strategic partnerships with other financial institutions and technology providers enhance PFIS's market reach and operational efficiency, further bolstering its revenue capabilities.

Peoples Financial Services Financial Statement Overview

Summary

Peoples Financial Services shows strong financial health with robust profitability and cash flow performance. While revenue growth is solid, a slight decline in net profit margin suggests increased expenses. The balance sheet is stable with low leverage, although the equity ratio indicates room for improvement. Cash flow metrics highlight excellent liquidity and operational efficiency.

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: 53.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 53.37 is above the 20-day moving average (MA) of 51.77, above the 50-day MA of 50.68, and above the 200-day MA of 48.24, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 62.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, 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
AROW	77 Outperform	$483.86M	16.02	7.72%	3.90%	8.36%	-2.24%
PFIS	76 Outperform	$533.42M	15.65	8.08%	4.63%	67.70%	39.18%
ALRS	76 Outperform	$579.29M	13.44	9.19%	3.55%	40.69%	373.32%
GNTY	75 Outperform	$558.87M	15.47	11.28%	1.99%	1.61%	38.81%
NFBK	74 Outperform	$500.89M	13.48	5.02%	4.34%	7.66%	28.75%
ACNB	73 Outperform	$473.03M	16.64	7.36%	2.94%	32.18%	-26.13%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%

Peoples Financial Services Corporate Events

Peoples Financial Services Adopts New Severance Plan

On August 29, 2025, Peoples Financial Services Corp. announced the adoption of a Severance and Change in Control Plan for its CEO and leadership team, effective September 2, 2025. The plan provides severance benefits under specific conditions for executives experiencing a qualifying termination, aiming to offer financial security and continuity in leadership during organizational changes or a change in control.

Peoples Financial Services Reports Strong Q2 2025 Results

Peoples Financial Services Corp. reported strong financial results for Q2 2025, with a net income of $17 million and a net interest margin of 3.69%. The company completed its merger with FNCB in July 2024, enhancing its scale and liquidity. The company’s total deposits stood at $4.3 billion, and it completed a private placement of $85 million in subordinated notes to strengthen capital ratios.

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.