Provident Financial Services (PFS)
NYSE:PFS
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Provident Financial Services
(NYSE:PFS)
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Rating:71Outperform
Price Target:
$25.00
â–²(9.46% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improved profitability and reaffirmed forward targets, supported by attractive valuation (low P/E and strong dividend yield). Offsetting factors include rising leverage, volatile recent free-cash-flow growth, and credit/funding and NIM-related pressures discussed on the latest call.
Positive Factors
Improved profitability and margins
Sustained recovery in profitability and a ~22% net margin with materially higher net income provides durable earnings power. Higher recurring earnings improve the bank’s ability to absorb credit costs, fund technology and dividends, and support capital build over multiple quarters.
Negative Factors
Rising leverage and rapid asset growth
Material asset expansion and higher leverage reduce capital flexibility and increase sensitivity to funding and credit shocks. With debt-to-equity up sharply, the bank has less cushion for losses and may face tighter constraints on growth or capital returns if credit or funding conditions worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and margins
Sustained recovery in profitability and a ~22% net margin with materially higher net income provides durable earnings power. Higher recurring earnings improve the bank’s ability to absorb credit costs, fund technology and dividends, and support capital build over multiple quarters.
Read all positive factors
Provident Financial Services (PFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.89B
Dividend Yield4.69%
Average Volume (3M)998.83K
Price to Earnings (P/E)8.7
Beta (1Y)0.88
Revenue Growth8.48%
EPS Growth111.63%
CountryUS
Employees1,753
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.35
Shares Outstanding130,313,690
10 Day Avg. Volume949,700
30 Day Avg. Volume998,832
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.91
Price to Sales (P/S)1.87
P/FCF Ratio5.99
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue3.98
Enterprise Value/Gross Profit6.27
Enterprise Value/Ebitda12.09
Forecast
1Y Price Target
$25.33Price Target Upside10.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.36
Revenue Forecast (FY)$933.24M
Provident Financial Services Business Overview & Revenue Model
Company Description
Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. The company's deposit products include sa...
How the Company Makes Money
PFS primarily makes money through traditional banking activities conducted by its bank subsidiary. The largest driver is typically net interest income: the company earns interest and fee income on loans and interest-earning assets (such as commerc...
Provident Financial Services Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive financial performance with strong earnings growth, record noninterest income, robust commercial loan production and an expanding loan pipeline, along with capital build and share repurchases. Key challenges include a rise in nonperforming loans tied to one bankruptcy-affected commercial relationship, modest deposit outflows and near-term expense pressure from compensation and a core systems upgrade. Management expects credit resolution without material loss, reaffirmed guidance and highlighted strategic investments to support future growth and efficiency.Positive Updates
Solid Profitability and EPS Growth
Net earnings of $79 million, or $0.61 per share, representing a 24% increase in net income versus 2025. Annualized return on average assets was 1.29% and adjusted return on average tangible common equity was 16.6%.
Negative Updates
Increase in Nonperforming Loans
Nonperforming loans increased to 73 basis points of total loans from 40 basis points in the fourth quarter, primarily due to a bankruptcy affecting four related commercial senior housing loans totaling $82 million.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Profitability and EPS Growth
Net earnings of $79 million, or $0.61 per share, representing a 24% increase in net income versus 2025. Annualized return on average assets was 1.29% and adjusted return on average tangible common equity was 16.6%.
Read all positive updates
Company Guidance
Provident reaffirmed full‑year 2026 guidance of 4%–6% loan and deposit growth, noninterest income averaging $28.5 million per quarter, core ROA targeted at 1.2%–1.3% and a mid‑teens return on average tangible common equity; it tightened NIM guidance to 3.40%–3.45% (inclusive of purchase accounting accretion) with about 3 basis points of core NIM expansion expected in Q2 and now models no further Fed rate actions in 2026, projects quarterly core operating expenses of roughly $117–119 million (with ~ $5 million of additional nonrecurring core‑upgrade charges largely in Q3–Q4), remains opportunistic on share buybacks after repurchasing $12.4 million (589k shares) in Q1 with 2.2 million shares remaining on authorization, and continues to build capital (tangible common equity ~8.6% and tangible book value $16.03, +$0.33 this quarter) to support the plan.Provident Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.40B | 1.38B | 1.14B | 695.65M | 553.97M | 489.15M |
| Gross Profit | 886.01M | 866.82M | 607.16M | 451.12M | 500.34M | 475.66M |
| EBITDA | 459.51M | 408.16M | 204.20M | 197.97M | 263.81M | 249.85M |
| Net Income | 306.55M | 291.16M | 115.53M | 128.40M | 175.65M | 167.92M |
Balance Sheet | ||||||
| Total Assets | 25.20B | 24.98B | 24.05B | 14.21B | 13.78B | 13.78B |
| Cash, Cash Equivalents and Short-Term Investments | 3.46B | 3.38B | 2.97B | 1.87B | 1.99B | 2.77B |
| Total Debt | 2.89B | 2.52B | 2.42B | 1.53B | 1.35B | 637.06M |
| Total Liabilities | 22.34B | 22.15B | 21.45B | 12.52B | 12.19B | 12.08B |
| Stockholders Equity | 2.86B | 2.83B | 2.60B | 1.69B | 1.60B | 1.70B |
Cash Flow | ||||||
| Free Cash Flow | 422.69M | 430.73M | 425.07M | 165.91M | 190.90M | 143.01M |
| Operating Cash Flow | 438.40M | 442.26M | 426.38M | 173.40M | 200.31M | 156.81M |
| Investing Cash Flow | -1.11B | -1.05B | 507.67M | -469.60M | -647.56M | -716.57M |
| Financing Cash Flow | 657.85M | 615.62M | -908.37M | 289.95M | -78.70M | 739.86M |
Provident Financial Services Technical Analysis
Positive
22.84
Price Trends
21.50
Positive
21.30
Positive
20.01
Positive
Market Momentum
>-0.01
Positive
54.21
Neutral
38.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFS, the sentiment is Positive. The current price of 22.84 is above the 20-day moving average (MA) of 22.08, above the 50-day MA of 21.50, and above the 200-day MA of 20.01, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 38.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFS.
Provident Financial Services Risk Analysis
Provident Financial Services disclosed 31 risk factors in its most recent earnings report. Provident 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
Provident Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.20B | 9.44 | 10.66% | 2.97% | 3.87% | 16.71% | |
81 Outperform | $3.20B | 9.71 | 10.23% | 3.79% | 8.30% | 17.76% | |
71 Outperform | $2.89B | 8.69 | 10.98% | 4.69% | 8.48% | 111.63% | |
70 Outperform | $2.62B | 9.04 | 8.36% | 3.27% | -8.79% | 15.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $2.53B | 20.98 | 8.03% | 3.72% | 0.97% | -4.32% | |
62 Neutral | $3.09B | 10.35 | -10.51% | 4.41% | -57.23% | -320.45% |
* Financial Sector Average
PFS
Provident Financial Services
22.15
6.14
38.34%
BANR
Banner
64.65
3.96
6.53%
FFBC
First Financial Bancorp
30.46
7.16
30.71%
FRME
First Merchants
40.11
3.75
10.32%
SFNC
Simmons 1st Nat'l
21.27
3.13
17.24%
WAFD
Washington Federal
35.45
7.70
27.77%
Provident Financial Services Corporate Events
Dividends
Provident Financial Services Declares Quarterly Cash Dividend
Positive
Apr 30, 2026
On April 30, 2026, Provident Financial Services, Inc. announced that its board of directors declared a quarterly cash dividend of $0.24 per common share. The dividend is payable on May 29, 2026 to stockholders of record as of the close of business...
Stock BuybackFinancial Disclosures
Provident Financial Services Posts Higher Q1 2026 Earnings
Positive
Apr 30, 2026
Provident Financial Services reported first-quarter 2026 net income of $79.4 million, or $0.61 per share, on April 29, 2026, up from $64.0 million a year earlier but slightly below the prior quarter, as 13.5% pre-provision net revenue growth and a...
Business Operations and StrategyStock BuybackFinancial Disclosures
Provident Financial Posts Strong First-Quarter 2026 Earnings Performance
Positive
Apr 30, 2026
Provident Financial Services reported first-quarter 2026 results highlighting its positioning as a diversified regional banking franchise with a sizable commercial loan book and fee-based businesses. The company operates a broad branch network acr...
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.