Provident Financial Services, Inc. (PFS) AI Stock Analysis

Provident Financial Services, Inc. serves as a bank holding company overseeing Provident Bank, providing financial services to individuals, families, and businesses. Its deposit lineup covers checking, savings, money market, certificate of deposit, and IRA accounts. Lending activities focus on commercial real estate across multi-family apartments, offices, retail, and industrial facilities, as well as commercial business loans, residential mortgages, construction financing, and consumer credit like HELOCs and auto loans. The company also supplies cash management, payroll origination, escrow services, digital banking, and business credit cards. Furthermore, it operates wealth management, insurance sales, trust administration, private banking, and a real estate investment trust.

Provident's revenue expanded from $489.1M in FY2021 to $1.38B in FY2025, achieving a 5-year revenue CAGR of 26.0%. Annual net income rose to $291.2M in FY2025 from $115.5M in FY2024, with net margin improving from 10.1% to 21.1%. In the latest trailing twelve months, revenue reached $894.3M with an operating margin of 52.3% and EPS of $2.40. For the quarter ending June 30, 2026, quarterly revenue grew 3.8% year-over-year while quarterly earnings expanded 9.0%.

As of June 30, 2026, Provident Financial Services held $3.51B in cash and short-term investments against total debt of $4.79B, resulting in net debt of $1.28B. Total assets stood at $25.66B with shareholders' equity of $2.91B, reflecting a debt-to-equity ratio of 1.65. In FY2025, operating cash flow reached $442.3M, supporting $11.5M in capital expenditures and free cash flow of $430.7M. The company distributed $125.9M in dividends during FY2025, while its share count grew 71.1% over five years.

PFS trades at a trailing P/E of 9.3x and a forward P/E of 9.0x, both below the US-listed Financial Services median of 12.1x and 10.8x, respectively. Its price-to-sales ratio is 3.2x, matching the peer group median of 3.2x, with a price-to-book ratio of 1.0x and an enterprise value of $5.55B. Over the past year, the stock returned 29.9%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 15.1% trailed the S&P 500's 83.0%.

Provident Financial Services pays an annualized forward dividend of $0.96 per share, corresponding to a 4.32% dividend yield. Dividends are paid quarterly, backed by a 40.0% payout ratio. The company has maintained consecutive annual dividend payments for 24 years, with a 5-year annualized dividend growth rate of 0.9%. Its most recent ex-dividend date was August 14, 2026.

Consensus coverage includes 2 Strong Buy, 2 Buy, and 2 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target is $27.75, representing a 24.8% upside relative to the last close of $22.23. Provident beat EPS consensus estimates in each of the last 4 quarters. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.46 on revenue of $938.5M. The next earnings date is October 28, 2026.

This page is an AI-written research summary of Provident Financial Services, Inc. (PFS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PFS income statement, PFS balance sheet, PFS key metrics, PFS analyst forecast, PFS chart. See the PFS stock overview for the latest quote and news.