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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 57.5GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.3%
Sector: 8.5%
Dividend Analysis audit
INCOME
5.08%
Trailing Yield
$5.08
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
66%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PEOPLES FINANCIAL SERVICES CORP. (PFIS) receives a "Buy" rating with a composite score of 55.0/100, ranked #64 out of 4446 stocks. Key factor scores: Quality 58/100, Value 76/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
PEOPLES FINANCIAL SERVICES CORP. (PFIS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PEOPLES FINANCIAL SERVICES CORP. Do?
Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services. The company accepts money market, NOW, savings, individual retirement, demand deposit, and certificates of deposit accounts. It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. In addition, the company offers investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial/IRA custodial, and corporate trust services, as well as pension and profit sharing plans. Further, it provides investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities and brokerage, and investor services. Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services. It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers through 28 full-service community banking offices located in Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, and Wyoming Counties of Pennsylvania; Middlesex County of New Jersey; and Broome County of New York. The company was founded in 1905 and is headquartered in Scranton, Pennsylvania. PEOPLES FINANCIAL SERVICES CORP. (PFIS) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Craig W. Best and employs approximately 400 people, headquartered in SCRANTON, Pennsylvania. With a market capitalization of $542M, PFIS is one of the notable companies in the Financials sector.
As of April 2026, PEOPLES FINANCIAL SERVICES CORP. receives a Buy rating with a composite score of 55.0/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.PFIS ranks #64 out of 4,446 stocks in our coverage universe. Within the Financials sector, PEOPLES FINANCIAL SERVICES CORP. ranks #36 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PFIS Stock Price and 52-Week Range
PEOPLES FINANCIAL SERVICES CORP. (PFIS) currently trades at $57.75. The stock lost $0.47 (0.8%) in the most recent trading session. The 52-week high for PFIS is $57.71, which means the stock is currently trading 0.1% from its annual peak. The 52-week low is $38.90, putting the stock 48.5% above its annual trough. Recent trading volume was 62K shares, suggesting relatively thin trading activity.
Is PFIS Overvalued or Undervalued? — Valuation Analysis
PEOPLES FINANCIAL SERVICES CORP. (PFIS) carries a value factor score of 76/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 13.06x, compared to the Financials sector average of 14.88x — a discount of 12%. The price-to-book ratio stands at 1.08x, versus the sector average of 1.22x. The price-to-sales ratio is 2.14x, compared to 0.90x for the average Financials stock. On an enterprise value basis, PFIS trades at 10.66x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, PEOPLES FINANCIAL SERVICES CORP. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
PEOPLES FINANCIAL SERVICES CORP. (PFIS) earns a quality factor score of 58/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.3%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.8% versus the sector average of 1.2%.
On a margin basis, PEOPLES FINANCIAL SERVICES CORP. reports gross margins of 0.0%. The operating margin is 20.5% (sector: 21.8%). Net profit margin stands at 16.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 69.8% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PFIS Debt, Balance Sheet, and Financial Health
PEOPLES FINANCIAL SERVICES CORP. has a debt-to-equity ratio of 914.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $305M. Cash and equivalents stand at $62M.
PFIS has a beta of 0.77, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PEOPLES FINANCIAL SERVICES CORP. is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PEOPLES FINANCIAL SERVICES CORP. Revenue and Earnings History — Quarterly Trend
In TTM 2026, PEOPLES FINANCIAL SERVICES CORP. reported revenue of $261M and earnings per share (EPS) of $5.92. Net income for the quarter was $43M. Gross margin was 0.0%. Operating income came in at $53M.
In FY 2025, PEOPLES FINANCIAL SERVICES CORP. reported revenue of $260M and earnings per share (EPS) of $5.92. Net income for the quarter was $59M. Revenue grew 22.8% year-over-year compared to FY 2024. Operating income came in at $72M.
In Q3 2025, PEOPLES FINANCIAL SERVICES CORP. reported revenue of $65M and earnings per share (EPS) of $1.53. Net income for the quarter was $15M. Revenue grew -4.6% year-over-year compared to Q3 2024. Operating income came in at $19M.
In Q2 2025, PEOPLES FINANCIAL SERVICES CORP. reported revenue of $65M and earnings per share (EPS) of $1.70. Net income for the quarter was $17M. Revenue grew 70.2% year-over-year compared to Q2 2024. Operating income came in at $20M.
Over the past 8 quarters, PEOPLES FINANCIAL SERVICES CORP. has demonstrated a growth trajectory, with revenue expanding from $38M to $261M. Investors analyzing PFIS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PFIS Dividend Yield and Income Analysis
PEOPLES FINANCIAL SERVICES CORP. (PFIS) currently pays a dividend yield of 5.1%. At this yield, a $10,000 investment in PFIS stock would generate approximately $$508.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning PFIS offers above-average income for its sector. With a net margin of 16.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
PFIS Momentum and Technical Analysis Profile
PEOPLES FINANCIAL SERVICES CORP. (PFIS) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PFIS vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing PFIS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PFIS vs S&P 500 (SPY) comparison to assess how PEOPLES FINANCIAL SERVICES CORP. stacks up against the broader market across all factor dimensions.
PFIS Next Earnings Date
No upcoming earnings date has been announced for PEOPLES FINANCIAL SERVICES CORP. (PFIS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PFIS? — Investment Thesis Summary
The bull case for PEOPLES FINANCIAL SERVICES CORP. rests on several quantitative strengths. The value score of 76/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, PEOPLES FINANCIAL SERVICES CORP. (PFIS) earns a Buy rating with a composite score of 55.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PFIS stock.
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Institutional Research Dossier
PEOPLES FINANCIAL SERVICES CORP. (PFIS) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We maintain a Hold rating on Peoples Financial Services Corp. (PFIS). While the company exhibits attractive valuation metrics, particularly its low P/E and EV/EBITDA ratios compared to the sector, and has demonstrated impressive recent revenue growth, concerns regarding its capital allocation strategy, as reflected in its low Investment score and negative free cash flow, temper our enthusiasm. The high debt-to-equity ratio also warrants caution, suggesting a need for improved financial discipline and a more balanced approach to growth and profitability.
The primary driver of our Hold rating is the uncertainty surrounding PFIS's ability to sustain its recent growth trajectory while simultaneously improving its capital allocation efficiency and strengthening its balance sheet. While the company's valuation appears compelling on the surface, the underlying financial health and investment profile necessitate a cautious approach. Investors should closely monitor the company's progress in generating positive free cash flow, reducing its debt burden, and improving its return on invested capital before considering a more bullish stance.
Business Strategy & Overview
Peoples Financial Services Corp. operates as a community bank, providing a range of commercial and retail banking services through its subsidiary, Peoples Security Bank and Trust Company. The bank's core business revolves around attracting deposits and extending loans, generating revenue from the interest rate spread between these activities. PFIS offers a diverse suite of deposit products, including money market accounts, savings accounts, and certificates of deposit, catering to both individual and business customers. On the lending side, the bank provides residential mortgages, commercial real estate loans, and various other types of credit, targeting a broad spectrum of borrowers within its geographic footprint.
In addition to traditional banking services, PFIS offers wealth management and trust services, providing investment management, estate administration, and retirement planning solutions. This diversification allows the company to generate fee income and deepen its relationships with existing customers. The company's geographic focus is primarily on northeastern Pennsylvania, with a presence in several counties in Pennsylvania, New Jersey, and New York. This regional concentration allows PFIS to develop a strong understanding of local market conditions and build relationships with businesses and individuals in its communities.
PFIS's strategy appears to be centered on organic growth, expanding its loan portfolio and deposit base within its existing markets. The company also focuses on providing personalized customer service and building long-term relationships, differentiating itself from larger, national banks. The recent surge in revenue growth suggests that PFIS has been successful in executing its growth strategy, potentially through strategic acquisitions or aggressive market share capture. However, the negative free cash flow raises concerns about the sustainability of this growth, indicating that the company may be relying on external funding to fuel its expansion.
The company's reliance on traditional banking activities makes it susceptible to interest rate fluctuations and economic cycles. A rising interest rate environment could compress the bank's net interest margin, while an economic downturn could lead to increased loan losses. Furthermore, PFIS faces competition from other community banks, regional banks, and credit unions within its geographic markets. To remain competitive, the company must continue to innovate its product offerings, enhance its customer service, and maintain a strong capital base.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
69.8%
Sector: 9.4%
+644% VS SCTR
Economic Moat Analysis
Peoples Financial Services Corp.'s economic moat is likely Narrow. Community banks typically struggle to establish wide moats due to the commoditized nature of their services and the intense competition within the banking industry. While PFIS benefits from established relationships within its local communities, these relationships are not necessarily exclusive or difficult for competitors to replicate.
One potential source of a narrow moat for PFIS is its local brand recognition and customer loyalty. The bank has been operating in its core markets for over a century, building a reputation for reliability and customer service. This brand recognition can provide a slight advantage in attracting and retaining customers, particularly in a market where personal relationships are valued. However, this advantage is not insurmountable, as other banks can invest in marketing and customer service initiatives to build their own brand recognition.
Switching costs for banking customers are generally low, as it is relatively easy to transfer accounts and establish new banking relationships. While some customers may be hesitant to switch banks due to inertia or the perceived hassle, these switching costs are not significant enough to create a wide moat. Furthermore, the increasing prevalence of online and mobile banking has made it even easier for customers to compare rates and services across different banks, further reducing switching costs.
PFIS does not appear to possess any significant cost advantages or efficient scale that would contribute to a wider moat. The company's operating margin is slightly below the sector average, suggesting that it does not have a significant cost advantage over its competitors. While the bank benefits from economies of scale to some extent, these economies are not substantial enough to create a significant barrier to entry for other banks. Therefore, while PFIS may have a narrow moat based on local brand recognition and customer relationships, its competitive advantage is not particularly strong or durable.
Financial Health & Profitability
Peoples Financial Services Corp.'s financial health presents a mixed picture. The company's recent revenue growth of 69.8% is significantly higher than the sector average of 9.3%, indicating strong top-line performance. However, this growth has not translated into consistent profitability, as evidenced by the fluctuating net income and operating margin figures over the past few years. The company's net income increased substantially from $8.50 million in FY2024 to $59.19 million in FY2025, but this followed a period of relatively weak performance.
The company's return on equity (ROE) of 8.3% is slightly below the sector average of 8.5%, suggesting that PFIS is not generating as much profit from its equity as its peers. The company's gross margin is reported as 0.0%, which is unusual for a bank and likely reflects the way the data is categorized. Operating margin has improved significantly from 4.0% in FY2024 to 27.8% in FY2025, indicating improved efficiency in managing operating expenses. However, the quarterly operating margins have fluctuated, suggesting that this improvement may not be sustainable.
A significant concern is the company's negative free cash flow of $-133.68 million. This indicates that PFIS is spending more cash than it is generating, which could put pressure on its liquidity and financial flexibility. The company's total debt of $304.56 million is significantly higher than its total cash of $62.13 million, and its debt-to-equity ratio of 914.00 is substantially higher than the sector average of 115.00. This high level of leverage increases the company's financial risk and could make it more vulnerable to economic downturns.
The company's current ratio of 1.11 suggests that it has sufficient liquid assets to cover its short-term liabilities. However, the high debt-to-equity ratio and negative free cash flow raise concerns about the company's long-term financial sustainability. PFIS needs to improve its cash flow generation and reduce its debt burden to strengthen its financial position. The substantial revenue growth is a positive sign, but the company must ensure that this growth is profitable and sustainable.
Valuation Assessment
Peoples Financial Services Corp.'s valuation appears attractive based on several key metrics. The company's price-to-earnings (P/E) ratio of 8.7x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 1.8x is substantially lower than the sector average of 3.5x, further indicating undervaluation.
However, it is important to consider the company's growth prospects and financial health when assessing its valuation. While the company's recent revenue growth has been impressive, its negative free cash flow and high debt-to-equity ratio raise concerns about its long-term sustainability. These factors could justify a lower valuation multiple compared to its peers. Furthermore, the company's ROE is slightly below the sector average, suggesting that it is not generating as much profit from its equity as its competitors.
Given the company's mixed financial performance, the current valuation appears to be fair. The low P/E and EV/EBITDA ratios reflect the market's concerns about the company's financial health and sustainability. While the company's recent revenue growth is a positive sign, it needs to demonstrate that it can generate positive free cash flow and reduce its debt burden to justify a higher valuation. Investors should closely monitor the company's progress in these areas before considering a more bullish stance.
A discounted cash flow (DCF) analysis would be helpful in determining the intrinsic value of the stock, but the lack of historical free cash flow data makes it difficult to perform such an analysis. Furthermore, the company's volatile earnings history makes it challenging to project future cash flows with any degree of certainty. Therefore, while the company's valuation appears attractive on the surface, a more in-depth analysis is needed to determine its true worth.
Risk & Uncertainty
Peoples Financial Services Corp. faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its high debt-to-equity ratio. This high level of leverage increases the company's financial risk and could make it more vulnerable to economic downturns. If the company's earnings decline, it may struggle to meet its debt obligations, potentially leading to financial distress.
Another risk is the company's negative free cash flow. This indicates that PFIS is spending more cash than it is generating, which could put pressure on its liquidity and financial flexibility. If the company is unable to improve its cash flow generation, it may need to raise additional capital, potentially diluting existing shareholders. The company's reliance on traditional banking activities makes it susceptible to interest rate fluctuations and economic cycles. A rising interest rate environment could compress the bank's net interest margin, while an economic downturn could lead to increased loan losses.
PFIS also faces competition from other community banks, regional banks, and credit unions within its geographic markets. This intense competition could put pressure on the company's margins and market share. Furthermore, the increasing prevalence of online and mobile banking has made it easier for customers to compare rates and services across different banks, further intensifying competition. Regulatory changes could also pose a risk to the company's business. Changes in banking regulations could increase the company's compliance costs or restrict its ability to generate revenue.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPFIS's low P/E and EV/EBITDA ratios suggest significant undervaluation, offering substantial upside potential as the market recognizes its true worth.
BULL VIEWThe company's recent revenue growth demonstrates its ability to capture market share and expand its business, indicating a strong growth trajectory.
The Bear Case
BEAR VIEWPFIS's negative free cash flow and high debt-to-equity ratio raise serious concerns about its financial sustainability and ability to weather economic downturns.
BEAR VIEWThe company's ROE is below the sector average, indicating that it is not generating as much profit from its equity as its competitors, limiting its attractiveness.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PFIS and 4,400+ other equities.
PEOPLES FINANCIAL SERVICES CORP. exhibits a 85% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
20.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
16.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+105%
Income Projection audit
A $10,000 investment would generate approximately $508 annually in dividends at the current trailing rate.
