Peoples Financial Services (PFIS) AI Stock Analysis

• Market Cap: $494.63M
• Dividend Yield: 5.01%
• Average Volume (3M): 20.86K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.80
• Revenue Growth: 39.98%
• EPS Growth: 413.87%
• Country: US
• Employees: 511
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.51
• Shares Outstanding: 9,994,595
• 10 Day Avg. Volume: 25,421
• 30 Day Avg. Volume: 20,856
• 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: 1.48
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 4.01
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $50.00
• Price Target Upside: 1.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $49.00 ▼(-0.69% Downside)

The overall stock score for Peoples Financial Services is driven primarily by its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation and income opportunities. However, the score is moderated by weak technical indicators and challenges in financial performance, particularly declining revenue and negative cash flow growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling investment in growth opportunities and resilience against economic downturns.

Balance Sheet Health

A stable balance sheet with moderate leverage supports financial stability and the ability to withstand economic fluctuations.

Negative Factors

Profitability Margins

Pressure on profitability margins can impact long-term earnings potential, necessitating improvements in cost management and efficiency.

Operational Efficiency

Decreased operational efficiency can hinder profitability, requiring strategic initiatives to optimize processes and reduce costs.

Cash Flow Conversion

Low cash flow conversion indicates challenges in turning earnings into cash, which could affect liquidity and investment capacity.

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 generates revenue through a variety of key streams. Primarily, it earns interest income from loans issued to customers, including personal loans, mortgages, and business loans. Additionally, the company collects fees from various financial services such as account maintenance, transaction services, and wealth management. Investment income from its asset management services also contributes to its earnings. Furthermore, PFIS may engage in partnerships with other financial institutions or service providers, enhancing its service offerings and expanding its client base, which can lead to increased revenue through cross-selling opportunities.

Peoples Financial Services Financial Statement Overview

Summary

Peoples Financial Services demonstrates solid financial health with strong revenue growth and a stable balance sheet. However, profitability margins have faced some pressure, and there is room for improvement in operational efficiency.

Income Statement

Peoples Financial Services has shown strong revenue growth with an 11.6% increase in the TTM period. The gross profit margin is healthy at 57.9%, and the net profit margin has improved to 11.8%. However, the EBIT and EBITDA margins have decreased compared to previous years, indicating some pressure on operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.36, reflecting a balanced approach to leverage. The return on equity has improved to 7.0% in the TTM period, but it remains below industry-leading levels. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Free cash flow growth is robust at 19.4% in the TTM period, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.68, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is healthy at 0.85.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	282.34M	229.80M	164.00M	123.66M	107.75M	110.77M
Gross Profit	182.56M	115.19M	100.34M	108.52M	96.58M	89.04M
EBITDA	73.73M	15.70M	36.00M	49.40M	57.16M	38.42M
Net Income	53.30M	8.50M	27.38M	38.09M	43.52M	29.35M
Balance Sheet
Total Assets	5.16B	5.09B	3.74B	3.55B	3.37B	2.88B
Cash, Cash Equivalents and Short-Term Investments	375.03M	323.18M	441.59M	515.57M	554.83M	341.10M
Total Debt	304.56M	155.58M	75.59M	148.49M	35.71M	97.77M
Total Liabilities	4.65B	4.62B	3.40B	3.24B	3.03B	2.57B
Stockholders Equity	509.26M	468.95M	340.42M	315.35M	340.13M	316.88M
Cash Flow
Free Cash Flow	35.78M	31.35M	27.33M	34.53M	35.89M	34.89M
Operating Cash Flow	41.50M	33.92M	33.25M	42.36M	40.77M	37.18M
Investing Cash Flow	113.82M	387.15M	-25.75M	-467.82M	-440.10M	-201.24M
Financing Cash Flow	-260.87M	-472.58M	142.00M	183.40M	451.07M	361.10M

Peoples Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.34
• 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 49.34 is above the 20-day moving average (MA) of 47.89, above the 50-day MA of 46.99, and above the 200-day MA of 47.00, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 66.41 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
NRIM	81 Outperform	$536.14M	8.64	21.92%	2.54%	36.60%	92.63%
UNTY	80 Outperform	$522.15M	9.85	17.46%	1.10%	11.38%	36.10%
BHB	76 Outperform	$516.51M	13.34	7.37%	4.05%	4.26%	-16.52%
PGC	76 Outperform	$436.98M	12.81	5.50%	0.72%	9.16%	6.95%
NFBK	72 Outperform	$468.28M	11.49	5.56%	4.57%	6.08%	52.64%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFIS	63 Neutral	$494.63M	9.35	10.83%	5.01%	39.98%	413.87%

Peoples Financial Services Corporate Events

Peoples Financial Services Reports Q3 2025 Financial Results

In Q3 2025, Peoples Financial Services Corp. reported a net income of $15.2 million, or $1.51 per diluted share. The company completed its merger with FNCB on July 1, 2024, enhancing its scale, earnings diversification, and liquidity. The quarter also marked a transition to a new headquarters and a loss on pending sales of administrative properties. Total deposits stood at $4.3 billion, with a cost of deposits at 1.88%, while loans amounted to $4.0 billion. The company’s asset quality remained strong, with nonperforming assets at 0.33% of total assets and a tangible common equity to tangible assets ratio of 7.99%.