Provident Financial Services (PFS) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: 4.83%
• Average Volume (3M): 625.30K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.99
• Revenue Growth: 66.96%
• EPS Growth: 67.27%
• Country: US
• Employees: 1,753
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 130,624,150
• 10 Day Avg. Volume: 571,897
• 30 Day Avg. Volume: 625,303
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 4.34
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $21.75
• Price Target Upside: 9.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: $21.50 ▲(8.20% Upside)

Provident Financial Services receives a strong overall score due to its robust financial performance, attractive valuation, and positive earnings call sentiment. The stock's technical indicators further support a bullish outlook. While some challenges exist, such as volatility in free cash flow and specific revenue declines, the company's strategic focus on growth and operational efficiency positions it well for future success.

Provident Financial Services Business Overview & Revenue Model

Company Description

Provident Financial Services (PFS) is a regional bank holding company headquartered in Jersey City, New Jersey. The company primarily operates through its subsidiary, Provident Bank, which offers a comprehensive range of financial products and services, including personal banking, commercial banking, and wealth management services. PFS serves a diverse clientele, including individuals, businesses, and non-profit organizations, primarily in New Jersey and surrounding areas.

How the Company Makes Money

Provident Financial Services generates revenue primarily through interest income from loans and mortgages, which constitutes a significant portion of its earnings. The bank lends to individuals and businesses, earning interest on these loans over time. Additionally, PFS earns non-interest income through various services such as fees for account maintenance, ATM usage, and wealth management services. The bank also engages in investment activities, including securities trading and investment advisory services, which contribute to its revenue streams. Strategic partnerships with local businesses and organizations also enhance its customer base and revenue potential, while prudent risk management practices help maintain profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.14B	695.65M	553.97M	489.15M	435.74M
Gross Profit	805.99M	607.16M	451.12M	500.34M	475.66M	353.47M
EBITDA	264.37M	204.20M	197.97M	263.81M	249.85M	147.59M
Net Income	147.47M	115.53M	128.40M	175.65M	167.92M	96.95M
Balance Sheet
Total Assets	24.22B	24.05B	14.21B	13.78B	13.78B	12.92B
Cash, Cash Equivalents and Short-Term Investments	3.11B	2.97B	1.87B	1.99B	2.77B	1.64B
Total Debt	2.74B	2.42B	1.53B	1.35B	637.06M	1.20B
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	471.57M	425.07M	165.91M	190.90M	143.01M	90.48M
Operating Cash Flow	473.49M	426.38M	173.40M	200.31M	156.81M	103.30M
Investing Cash Flow	278.89M	507.67M	-469.60M	-647.56M	-716.57M	-504.37M
Financing Cash Flow	249.37M	-908.37M	289.95M	-78.70M	739.86M	746.68M

Provident Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 19.87 is above the 20-day moving average (MA) of 18.64, above the 50-day MA of 18.17, and above the 200-day MA of 17.75, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 69.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.97 is Negative, 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
PFS	80 Outperform	$2.60B	11.11	8.78%	4.83%	66.96%	67.27%
WAFD	79 Outperform	$2.49B	11.97	7.59%	3.39%	8.75%	5.16%
BANR	78 Outperform	$2.33B	12.78	10.24%	2.85%	8.40%	9.46%
FFBC	77 Outperform	$2.55B	10.61	9.77%	3.61%	4.62%	2.69%
SFNC	71 Outperform	$2.99B	16.23	4.57%	4.05%	-0.30%	6.05%
FRME	69 Neutral	$2.39B	10.66	9.90%	3.40%	-1.18%	23.43%
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%

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.

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.

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.

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.

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.