Peoples Financial Services (PFIS) AI Stock Analysis

• Market Cap: $476.75M
• Dividend Yield: 5.18%
• Average Volume (3M): 20.55K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.80
• Revenue Growth: 51.62%
• EPS Growth: -34.65%
• Country: US
• Employees: 511
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 1.51
• Shares Outstanding: 9,994,695
• 10 Day Avg. Volume: 19,558
• 30 Day Avg. Volume: 20,552
• PEG Ratio: -0.80
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.76
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 5.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $55.00 ▲(15.30%Upside)

Peoples Financial Services scores well due to its robust financial performance and strategic corporate events, which underscore strong growth potential and effective management. Despite a higher valuation, its solid dividend yield and positive technical indicators enhance its attractiveness to investors.

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, which includes personal, business, and real estate loans. Additionally, the company earns income from non-interest sources such as service charges on deposit accounts, fees from wealth management and investment advisory services, and transaction fees. PFIS also benefits from its investment securities portfolio, contributing to its overall earnings. The company's partnerships with financial service providers and its strategic focus on community banking enable it to maintain a diversified revenue stream, ensuring consistent financial performance.

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
195.53M	134.32M	100.32M	108.07M	98.12M	96.44M
	Gross Profit
201.61M	134.32M	163.61M	108.52M	98.12M	96.44M
	EBIT
35.80M	8.47M	32.50M	54.25M	53.52M	43.51M
	EBITDA
37.15M	15.70M	36.00M	49.40M	53.52M	0.00
	Net Income Common Stockholders
20.04M	8.50M	27.38M	38.09M	43.52M	29.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
336.18M	267.56M	586.29M	515.57M	554.83M	341.10M
	Total Assets
5.00B	4.16B	3.74B	3.55B	3.37B	2.88B
	Total Debt
103.24M	105.52M	75.59M	148.49M	35.71M	97.77M
	Net Debt
43.12M	105.52M	32.92M	110.62M	-1.80M	52.58M
	Total Liabilities
4.52B	3.26B	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: Neutral
• Last Price: 47.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFIS, the sentiment is Neutral. The current price of 47.7 is below the 20-day moving average (MA) of 48.56, above the 50-day MA of 45.56, and above the 200-day MA of 47.30, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 56.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PFIS.

Peoples Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFIS	78 Outperform	$476.75M	22.42	4.88%	5.18%	51.62%	-34.65%
AROW	76 Outperform	$422.22M	14.92	7.25%	4.42%	11.46%	-1.07%
ACNB	74 Outperform	$430.57M	14.14	7.44%	3.31%	22.17%	-15.57%
NFBK	71 Outperform	$503.41M	15.39	4.48%	4.40%	10.00%	2.81%
GNTY	71 Outperform	$458.52M	13.87	10.62%	2.47%	0.13%	19.68%
ALRS	71 Outperform	$531.41M	17.33	6.27%	3.82%	40.06%	145.33%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%

Peoples Financial Services Corporate Events

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.

Peoples Financial Appoints New Chief Accounting Officer

On March 28, 2025, Peoples Financial Services Corp. announced the appointment of Stephanie A. Westington as Senior Vice President and Chief Accounting Officer, effective April 1, 2025. This change follows the cessation of John R. Anderson, III’s role and the temporary assumption by James M. Bone, Jr. The appointment is part of the company’s ongoing leadership restructuring following its merger with FNCB Bancorp., Inc. on July 1, 2024, and reflects Ms. Westington’s extensive experience in financial roles within the banking sector.