Provident Financial Services (PFS) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 5.33%
• Average Volume (3M): 677.55K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.02
• Revenue Growth: 66.95%
• EPS Growth: 67.27%
• Country: US
• Employees: 1,753
• Sector: Financial
• Sector Strength: 68
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 130,659,940
• 10 Day Avg. Volume: 643,645
• 30 Day Avg. Volume: 677,555
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 4.80
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 18.42
• 1Y Price Target: $21.50
• Price Target Upside: 17.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $20.50 ▲(12.39%Upside)

Provident Financial Services presents a solid investment opportunity with strong financial health and positive earnings outlook. Technical indicators show upward momentum, and the company offers a competitive dividend yield. Monitoring free cash flow volatility and competitive pressures are advised.

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 savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. Its loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, marine loans, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. The company also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, it provides wealth management services comprising investment management, trust and estate administration, financial planning, tax compliance and planning, and private banking. Further, the company sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. As of December 31, 2021, it operated 96 full-service branch offices in northern and central New Jersey, as well as in Pennsylvania and New York counties. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

How the Company Makes Money

Provident Financial Services, Inc. generates revenue primarily through interest income from its loan portfolio, which includes residential mortgages, commercial real estate loans, and consumer loans. Additionally, the company earns non-interest income from service charges on deposit accounts, investment management fees, and mortgage banking activities. PFS also benefits from interest on securities investments and fees for financial services such as wealth management and insurance products. Key factors contributing to its earnings include its strategic branch locations, competitive loan and deposit offerings, and a focus on maintaining strong customer relationships.

Provident Financial Services Financial Statement Overview

Summary

Provident Financial Services shows strong profitability and a robust balance sheet. Revenue growth is solid, although net margins have faced some pressure. The balance sheet is strong with no debt, and cash flow generation is positive. However, free cash flow volatility and large financing activities need monitoring.

Income Statement

The company shows strong gross profit margins consistently above 80%, indicating efficient cost management. Revenue growth is solid, particularly noticeable in 2024, but net profit margins have declined slightly, suggesting rising costs or competitive pressures. EBIT margins remain robust, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong with no debt in 2024, significantly improving the debt-to-equity ratio to 0. Stockholders' equity has increased, enhancing the equity ratio, while Return on Equity remains stable, indicating consistent profitability. These factors contribute to a solid financial foundation.

Cash Flow

Operating cash flow is positive and growing, indicating good cash generation from core activities. However, free cash flow growth has been volatile, and the high financing outflow in 2024 could be a concern. The operating cash flow to net income ratio suggests efficient cash conversion, but the free cash flow to net income ratio highlights potential cash flow management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	695.65M	553.97M	489.15M	435.74M
Gross Profit	607.16M	451.12M	500.34M	475.66M	353.47M
EBITDA	204.20M	197.97M	263.81M	249.85M	147.59M
Net Income	115.53M	128.40M	175.65M	167.92M	96.95M
Balance Sheet
Total Assets	24.05B	14.21B	13.78B	13.78B	12.92B
Cash, Cash Equivalents and Short-Term Investments	2.97B	1.87B	1.99B	2.77B	1.64B
Total Debt	2.42B	1.53B	1.35B	637.06M	1.20B
Total Liabilities	21.45B	12.52B	12.19B	12.08B	11.30B
Stockholders Equity	2.60B	1.69B	1.60B	1.70B	1.62B
Cash Flow
Free Cash Flow	425.07M	165.91M	190.90M	143.01M	90.48M
Operating Cash Flow	426.38M	173.40M	200.31M	156.81M	103.30M
Investing Cash Flow	507.67M	-469.60M	-647.56M	-716.57M	-504.37M
Financing Cash Flow	-908.37M	289.95M	-78.70M	739.86M	746.68M

Provident Financial Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.24
• 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 PFS, the sentiment is Neutral. The current price of 18.24 is below the 20-day moving average (MA) of 18.52, above the 50-day MA of 17.65, and above the 200-day MA of 17.93, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 28.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PFS.

Provident Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFBC	79 Outperform	$2.26B	9.47	9.77%	4.06%	4.62%	2.69%
PFS	75 Outperform	$2.35B	10.18	8.78%	5.33%	66.95%	67.27%
WAFD	72 Outperform	$2.31B	11.02	7.59%	3.67%	8.74%	5.16%
FRME	71 Outperform	$2.14B	9.64	9.90%	3.80%	-1.18%	23.43%
BANR	70 Outperform	$2.11B	11.64	10.24%	3.14%	8.40%	9.46%
SFNC	70 Neutral	$2.75B	15.03	4.57%	4.44%	-0.32%	5.65%
Sector *	67 Neutral	¥764.30B	11.15	7.42%	3.21%	7.66%	14.08%

Provident Financial Services Corporate Events

Provident Financial Services Adopts Executive Severance Plan

On July 24, 2025, Provident Financial Services, Inc. announced the adoption of the Provident Bank Executive Severance Plan, which offers severance benefits to selected executive officers under specific conditions. The plan stipulates that eligible participants terminated without cause will receive a severance payment equivalent to their base salary and cash incentive, along with continued health insurance and outplacement services, provided they sign a waiver and release of claims. In cases of termination following a change in control, enhanced benefits are offered based on a multiple of the participant’s salary and incentives, though payments are adjusted to avoid excise taxes.

The most recent analyst rating on (PFS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.

Provident Financial Declares Quarterly Cash Dividend

On July 24, 2025, Provident Financial Services, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.24 per common share. This dividend is payable on August 29, 2025, to stockholders of record as of August 15, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders.

The most recent analyst rating on (PFS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.

Provident Financial Reports Strong Q2 2025 Performance

On July 24, 2025, Provident Financial Services reported a significant improvement in its financial performance for the second quarter of 2025, with net income rising to $72.0 million from the previous quarter’s $64.0 million. The company achieved record revenues of $214.2 million, driven by increased net interest income and a growing loan portfolio, reflecting its strategic focus on operational efficiency and asset quality. The company’s improved economic forecast and asset quality resulted in a $2.7 million benefit to the provision for credit losses, further enhancing its financial position.

The most recent analyst rating on (PFS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.

Provident Financial Services Reports Record Q2 2025 Revenue

Provident Financial Services reported record revenue of $214.2 million for the second quarter of 2025, driven by an increase in net interest income and non-interest income. The company’s commercial and industrial loan portfolio saw significant growth, and improvements were noted in credit quality metrics, with non-performing assets reduced and a decrease in the allowance for credit losses.

The most recent analyst rating on (PFS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.

Provident Financial Updates CEO Employment Agreement

On June 26, 2025, Provident Financial Services, Inc. entered into an amended and restated employment agreement with Anthony J. Labozzetta, its President and CEO, replacing his prior agreement from March 11, 2020. The new agreement, effective until June 26, 2028, includes provisions for automatic annual renewals and specific terms in the event of termination or change of control, such as severance payments and health insurance reimbursements. This agreement reflects adjustments in executive compensation and benefits, potentially impacting the company’s financial obligations and executive retention strategies.

The most recent analyst rating on (PFS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.