Provident Financial Services (PFS) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: 4.53%
• Average Volume (3M): 889.44K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.83
• Revenue Growth: 38.34%
• EPS Growth: 89.73%
• Country: US
• Employees: 1,753
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 130,622,390
• 10 Day Avg. Volume: 979,679
• 30 Day Avg. Volume: 889,436
• PEG Ratio: -0.46
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 4.87
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 7.64
• Enterprise Value/Ebitda: 14.14
• 1Y Price Target: $22.00
• Price Target Upside: 3.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $23.00 ▲(8.54% Upside)

Provident Financial Services is well-positioned with strong financial performance, robust technical indicators, and an attractive valuation. The recent earnings call highlighted record earnings and revenue, supporting a positive outlook. While there are challenges, such as revenue decline and increased competition, the company's strengths in profitability, cash flow, and market momentum contribute to a favorable stock score.

Positive Factors

Strong Deposit and Loan Growth

The significant growth in deposits and loans indicates a strong market position and the ability to attract and retain customers, supporting long-term revenue stability.

Improvement in Credit Metrics

Improved credit metrics reflect effective risk management and asset quality, enhancing financial stability and reducing potential future losses.

Growth in Noninterest Income

Diversification through noninterest income growth reduces reliance on interest income, providing a more stable revenue base amid interest rate fluctuations.

Negative Factors

Revenue Decline

A declining revenue growth rate can signal challenges in market expansion or product demand, potentially impacting long-term profitability.

Elevated Loan Prepayments

Higher loan prepayments can reduce interest income and affect loan growth, challenging the company's ability to maintain its net interest margin.

Increased Loan Competition

Rising competition in the lending market can pressure pricing and margins, potentially affecting the company's profitability and market share.

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 generates revenue primarily through interest income from loans, which includes residential and commercial mortgages. The company also earns money from service fees associated with deposit accounts and transaction services. Additionally, PFS benefits from investment income and gains from mortgage banking activities, including the sale of loans in the secondary market. Key revenue streams include net interest margin from lending activities, fee income from banking services, and investment returns. Strategic partnerships with real estate agents and developers further enhance their lending business, contributing to overall earnings.

Provident Financial Services Financial Statement Overview

Summary

Provident Financial Services demonstrates solid financial health with strong profitability and cash flow management. Despite a decline in revenue growth, the company maintains high profit margins and effective cash generation. The balance sheet reflects moderate leverage, supporting a stable financial structure.

Income Statement

Provident Financial Services shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 4.21%, which is a concern. However, the company maintains a strong net profit margin of 22.38% and an EBITDA margin of 44.91%, indicating efficient cost management and profitability. Despite the revenue decline, the company has managed to sustain profitability, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, which is reasonable for the banking industry. The return on equity (ROE) stands at 9.55%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the balance sheet suggests moderate leverage and satisfactory equity returns.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 6.13% in the TTM period, indicating strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, demonstrating efficient conversion of net income into cash. The operating cash flow to net income ratio is not provided, but the available metrics suggest healthy cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.14B	695.65M	553.97M	489.15M	435.74M
Gross Profit	639.88M	607.16M	451.12M	500.34M	475.66M	353.47M
EBITDA	345.66M	204.20M	197.97M	263.81M	249.85M	147.59M
Net Income	207.73M	115.53M	128.40M	175.65M	167.92M	96.95M
Balance Sheet
Total Assets	24.83B	24.05B	14.21B	13.78B	13.78B	12.92B
Cash, Cash Equivalents and Short-Term Investments	3.44B	2.97B	1.87B	1.99B	2.77B	1.64B
Total Debt	2.61B	2.42B	1.53B	1.35B	637.06M	1.20B
Total Liabilities	22.07B	21.45B	12.52B	12.19B	12.08B	11.30B
Stockholders Equity	2.77B	2.60B	1.69B	1.60B	1.70B	1.62B
Cash Flow
Free Cash Flow	607.43M	425.07M	165.91M	190.90M	143.01M	90.48M
Operating Cash Flow	612.60M	426.38M	173.40M	200.31M	156.81M	103.30M
Investing Cash Flow	-1.14B	507.67M	-469.60M	-647.56M	-716.57M	-504.37M
Financing Cash Flow	583.26M	-908.37M	289.95M	-78.70M	739.86M	746.68M

Provident Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 21.19 is above the 20-day moving average (MA) of 19.97, above the 50-day MA of 19.02, and above the 200-day MA of 17.78, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 74.66 is Negative, neither overbought nor oversold. The STOCH value of 78.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFS.

Provident Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFBC	80 Outperform	$2.62B	9.87	10.16%	3.68%	5.15%	16.42%
FRME	80 Outperform	$2.25B	9.74	9.90%	3.68%	-1.76%	32.44%
PFS	80 Outperform	$2.73B	10.65	9.51%	4.53%	38.34%	89.73%
BANR	79 Outperform	$2.28B	12.21	10.28%	2.87%	6.98%	15.08%
WAFD	68 Neutral	$2.56B	12.69	7.49%	3.23%	-1.58%	6.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFNC	61 Neutral	$2.81B	-6.62	-12.42%	4.38%	-55.53%	-387.04%

Provident Financial Services Corporate Events

Provident Financial Services Declares Quarterly Dividend

On October 30, 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 November 28, 2025, to stockholders of record as of November 14, 2025, reflecting the company’s ongoing commitment to providing shareholder value.

Provident Financial Services Reports Record Q3 2025 Revenue

Provident Financial Services reported record revenue for the second consecutive quarter, totaling $221.8 million for Q3 2025, driven by net interest income and non-interest income. The company saw significant growth in its commercial and industrial loan portfolio and improved asset quality, with non-performing assets decreasing to 0.41% of total assets. The tangible book value per share increased, and the company maintained a stable core funding base, reflecting a strong financial position and operational efficiency.

Provident Financial Services Reports Strong Q3 Earnings

On October 29, 2025, Provident Financial Services, Inc. reported its third-quarter earnings, highlighting a net income of $71.7 million for the quarter ended September 30, 2025. The company achieved record revenues for the second consecutive quarter, driven by growth in earning assets and deposits, and improved operational efficiency. The commercial and industrial loan portfolio saw significant growth, and total deposits increased by $387.7 million. Despite a provision for credit losses, the company maintained strong asset quality, with non-performing assets improving to 0.41% of total assets.