Provident Financial Services (PFS) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: 5.95%
• Average Volume (3M): 529.75K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.98
• Revenue Growth: 80.24%
• EPS Growth: -30.60%
• Country: US
• Employees: 1,753
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.50
• Shares Outstanding: 130,659,940
• 10 Day Avg. Volume: 564,616
• 30 Day Avg. Volume: 529,747
• PEG Ratio: 1.33
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.36
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 3.56
• 1Y Price Target: $21.00
• Price Target Upside: 30.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $18.50 ▲(14.62%Upside)

Provident Financial Services has a strong financial foundation and robust earnings outlook, which are the most significant contributors to its score. While technical analysis indicates moderate momentum, the attractive valuation and positive corporate events further enhance the stock's attractiveness. However, caution is advised due to potential challenges with cash flow volatility and deposit declines.

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 exhibits sound financial health with strong profitability and a robust balance sheet. The company has demonstrated positive revenue growth, though net margins face pressure. Cash flow generation is strong, but volatility in free cash flow and large financing activities are concerns.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
939.66M	1.14B	451.38M	496.95M	452.83M	385.00M
	Gross Profit
909.64M	694.73M	451.12M	423.15M	475.66M	327.11M
	EBIT
512.91M	206.48M	242.80M	288.74M	227.12M	127.55M
	EBITDA
266.54M	204.20M	197.97M	263.81M	227.12M	147.59M
	Net Income Common Stockholders
147.47M	115.53M	128.40M	175.65M	167.92M	96.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.11B	205.94M	1.87B	1.99B	2.77B	1.64B
	Total Assets
24.22B	24.05B	14.21B	13.78B	13.78B	12.92B
	Total Debt
2.74B	2.42B	1.46B	1.25B	520.30M	1.10B
	Net Debt
2.50B	2.22B	1.28B	1.06B	-192.17M	568.82M
	Total Liabilities
21.57B	21.45B	12.52B	12.19B	12.08B	11.30B
	Stockholders Equity
2.66B	2.60B	1.69B	1.60B	1.70B	1.62B
Cash Flow		Free Cash Flow
471.36M	425.07M	165.91M	190.90M	143.01M	90.48M
	Operating Cash Flow
471.21M	426.38M	173.40M	200.31M	156.81M	103.30M
	Investing Cash Flow
276.61M	507.67M	-469.60M	-647.56M	-716.57M	-504.37M
	Financing Cash Flow
-674.38M	-908.37M	289.95M	-78.70M	739.86M	746.68M

Provident Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFS, the sentiment is Negative. The current price of 16.14 is below the 20-day moving average (MA) of 16.60, below the 50-day MA of 16.45, and below the 200-day MA of 17.84, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 12.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PFS.

Provident Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBCF	76 Outperform	$2.14B	16.73	5.82%	2.90%	4.52%	7.58%
PFS	73 Outperform	$2.11B	14.55	6.77%	5.95%	80.24%	-30.60%
RNST	71 Outperform	$3.28B	10.77	7.83%	2.55%	13.47%	31.39%
WAFD	71 Outperform	$2.24B	10.58	7.70%	3.87%	24.53%	0.16%
BANR	68 Neutral	$2.12B	12.03	10.09%	3.09%	10.06%	6.18%
FBK	65 Neutral	$1.96B	15.75	8.27%	1.77%	3.30%	14.32%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%

Provident Financial Services Corporate Events

Provident Financial Announces Dividend Amid Strong Q1 Results

On April 24, 2025, Provident Financial Services, Inc. announced a quarterly cash dividend of $0.24 per common share, payable on May 30, 2025. The company reported a net income of $64.0 million for the first quarter of 2025, showing an increase from previous quarters. The results were positively influenced by the integration of Lakeland Bancorp, Inc., and despite a write-down on a foreclosed property, the company saw improvements in net interest margin and a decrease in credit loss provisions. The company’s commercial and industrial loan portfolio grew, and insurance agency income saw a significant increase, indicating strong operational performance and strategic positioning in the market.

Provident Financial Services Reports Strong Q1 2025 Results

Provident Financial Services reported its financial results for the first quarter of 2025, showing an increase in net interest margin and improved efficiency ratios. The company experienced a significant decrease in the provision for credit losses due to changes in unemployment rate forecasts, and its insurance agency income rose by 17.9% compared to the previous year. The loan pipeline remains robust, with a total of $2.77 billion in loans pending closing, reflecting a stable core funding base and diversified loan portfolio.