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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: 56.4GRADE 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
9.0%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.98%
Trailing Yield
$4.98
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
55%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PROVIDENT FINANCIAL SERVICES INC (PFS) receives a "Hold" rating with a composite score of 54.6/100, ranked #658 out of 4446 stocks. Key factor scores: Quality 56/100, Value 77/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
PROVIDENT FINANCIAL SERVICES INC (PFS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PROVIDENT FINANCIAL SERVICES INC Do?
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. PROVIDENT FINANCIAL SERVICES INC (PFS) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Anthony J. Labozzetta and employs approximately 1,150 people. With a market capitalization of $2.8B, PFS is one of the notable companies in the Financials sector.
As of April 2026, PROVIDENT FINANCIAL SERVICES INC receives a Hold rating with a composite score of 54.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PFS ranks #658 out of 4,446 stocks in our coverage universe. Within the Financials sector, PROVIDENT FINANCIAL SERVICES INC ranks #196 of 891 stocks, placing it in the top quartile 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%).
PFS Stock Price and 52-Week Range
PROVIDENT FINANCIAL SERVICES INC (PFS) currently trades at $22.05. The stock lost $0.41 (1.8%) in the most recent trading session. The 52-week high for PFS is $23.98, which means the stock is currently trading -8.0% from its annual peak. The 52-week low is $14.34, putting the stock 53.8% above its annual trough. Recent trading volume was 803K shares, suggesting relatively thin trading activity.
Is PFS Overvalued or Undervalued? — Valuation Analysis
PROVIDENT FINANCIAL SERVICES INC (PFS) carries a value factor score of 77/100 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 11.11x, compared to the Financials sector average of 14.88x — a discount of 25%. The price-to-book ratio stands at 1.00x, versus the sector average of 1.22x. The price-to-sales ratio is 38.84x, compared to 0.90x for the average Financials stock. On an enterprise value basis, PFS trades at 6.78x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, PROVIDENT FINANCIAL SERVICES INC 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.
PROVIDENT FINANCIAL SERVICES INC (PFS) earns a quality factor score of 56/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.0%, 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 1.0% versus the sector average of 1.2%.
On a margin basis, PROVIDENT FINANCIAL SERVICES INC reports gross margins of 0.0%. The operating margin is 496.5% (sector: 21.8%). Net profit margin stands at 349.4%, versus 17.7% for the average Financials stock. Revenue growth is running at 0.5% 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.
PFS Debt, Balance Sheet, and Financial Health
PROVIDENT FINANCIAL SERVICES INC has a debt-to-equity ratio of 782.0%, 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 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.61B. Cash and equivalents stand at $302M.
PFS has a beta of 0.91, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for PROVIDENT FINANCIAL SERVICES INC is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PROVIDENT FINANCIAL SERVICES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, PROVIDENT FINANCIAL SERVICES INC reported revenue of $73M and earnings per share (EPS) of $2.23. Net income for the quarter was $254M. Gross margin was 0.0%. Operating income came in at $361M.
In FY 2025, PROVIDENT FINANCIAL SERVICES INC reported revenue of $73M and earnings per share (EPS) of $2.23. Net income for the quarter was $291M. Revenue grew -89.5% year-over-year compared to FY 2024. Operating income came in at $408M.
In Q3 2025, PROVIDENT FINANCIAL SERVICES INC reported revenue of $18M and earnings per share (EPS) of $0.55. Net income for the quarter was $72M. Revenue grew -0.7% year-over-year compared to Q3 2024. Operating income came in at $102M.
In Q2 2025, PROVIDENT FINANCIAL SERVICES INC reported revenue of $18M and earnings per share (EPS) of $0.55. Net income for the quarter was $72M. Revenue grew 3.6% year-over-year compared to Q2 2024. Operating income came in at $102M.
Over the past 8 quarters, PROVIDENT FINANCIAL SERVICES INC has demonstrated a growth trajectory, with revenue expanding from $18M to $73M. Investors analyzing PFS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PFS Dividend Yield and Income Analysis
PROVIDENT FINANCIAL SERVICES INC (PFS) currently pays a dividend yield of 5.0%. At this yield, a $10,000 investment in PFS stock would generate approximately $$498.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning PFS offers above-average income for its sector. With a net margin of 349.4%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
PFS Momentum and Technical Analysis Profile
PROVIDENT FINANCIAL SERVICES INC (PFS) 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 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PFS vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing PFS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PFS vs S&P 500 (SPY) comparison to assess how PROVIDENT FINANCIAL SERVICES INC stacks up against the broader market across all factor dimensions.
PFS Next Earnings Date
No upcoming earnings date has been announced for PROVIDENT FINANCIAL SERVICES INC (PFS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PFS? — Investment Thesis Summary
PROVIDENT FINANCIAL SERVICES INC presents a balanced picture with arguments on both sides. The value score of 77/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 79/100) reduces downside risk.
In summary, PROVIDENT FINANCIAL SERVICES INC (PFS) earns a Hold rating with a composite score of 54.6/100 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 PFS stock.
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Institutional Research Dossier
PROVIDENT FINANCIAL SERVICES INC (PFS) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Provident Financial Services (PFS). The company's attractive valuation multiples, particularly its low P/E and EV/EBITDA relative to the financial sector, are offset by concerns surrounding its low revenue growth and high debt-to-equity ratio. While PFS exhibits strong profitability metrics like operating and net margins, its inconsistent revenue performance and negative free cash flow raise questions about its long-term sustainability and capital allocation efficiency.
The primary takeaway is that PFS presents a mixed bag for investors. Its value proposition is compelling, but its growth prospects and financial leverage warrant caution. A significant improvement in revenue growth and a reduction in debt would be necessary to justify a more bullish outlook. The current Hold rating reflects the balance between its attractive valuation and its operational and financial challenges.
Business Strategy & Overview
Provident Financial Services operates as a traditional bank, generating revenue primarily through net interest income from its loan portfolio and fees from its various banking services. The company's strategic focus appears to be on serving individuals, families, and businesses in the northern and central New Jersey, Pennsylvania, and New York counties. This regional concentration allows for a deeper understanding of the local market and customer needs, potentially leading to stronger customer relationships and higher customer retention rates.
PFS offers a diversified range of loan products, including commercial real estate loans, commercial business loans, residential mortgage loans, and consumer loans. This diversification helps to mitigate risk by reducing the company's reliance on any single loan type or sector. The company also provides various deposit products, such as savings, checking, and money market accounts, which are essential for funding its lending activities. Furthermore, PFS offers cash management, online and mobile banking, and wealth management services, expanding its revenue streams and catering to a broader range of customer needs.
The company's business strategy also includes managing and selling real estate properties acquired through foreclosure. While this activity can generate additional revenue, it also exposes the company to risks associated with the real estate market and the costs of managing and maintaining foreclosed properties. The company's operation as a real estate investment trust (REIT) for acquiring mortgage loans and other real estate-related assets further integrates its banking and real estate activities.
Provident's competitive positioning within the banking industry is likely focused on providing personalized service and local expertise, differentiating itself from larger national banks. However, it faces competition from other regional and community banks, as well as credit unions and online lenders. The company's ability to maintain and grow its market share will depend on its ability to effectively manage its loan portfolio, attract and retain deposits, and adapt to changing customer preferences and technological advancements.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
0.5%
Sector: 9.4%
-95% VS SCTR
Economic Moat Analysis
Provident Financial Services' economic moat is likely narrow. While the banking industry, in general, can benefit from customer relationships and switching costs, PFS's regional focus and relatively small size limit the scope of its competitive advantages. The company's ability to generate consistent profits and returns suggests some degree of competitive advantage, but it is not strong enough to warrant a wide moat rating.
Switching costs in the banking industry can arise from the inconvenience of changing banks, particularly for businesses that have established relationships and integrated banking services into their operations. However, these switching costs are not insurmountable, especially with the rise of online banking and mobile payment platforms that make it easier for customers to transfer funds and manage their accounts. PFS's ability to retain customers will depend on its ability to provide superior service, competitive rates, and innovative products that meet their evolving needs.
Intangible assets, such as brand reputation and customer loyalty, can also contribute to a bank's economic moat. PFS, with its long history dating back to 1839, may have built a strong reputation in its local markets. However, brand recognition is likely limited to its regional footprint, and it may not have the same level of brand awareness as larger national banks. The company's ability to leverage its brand reputation to attract new customers and retain existing ones will be crucial for its long-term success.
Cost advantages are less likely to be a significant source of economic moat for PFS. While the company may benefit from economies of scale in certain areas, such as technology and compliance, it is unlikely to have a substantial cost advantage over its competitors. Efficient scale, which refers to a market that can only support a limited number of efficient competitors, may provide some protection for PFS in its local markets. However, the banking industry is generally competitive, and PFS faces competition from a variety of players, including larger banks, credit unions, and online lenders.
Financial Health & Profitability
Provident Financial Services' financial health presents a mixed picture. The company's revenue growth has been inconsistent, with a significant drop from $694.73 million in FY2024 to $73.11 million in FY2025. This sharp decline raises concerns about the company's ability to generate sustainable revenue growth. However, it is important to note that the FY2025 revenue figure is a TTM (trailing twelve months) value, and the quarterly revenue figures show some stabilization around $17-18 million.
Despite the revenue challenges, PFS exhibits strong profitability metrics. Its operating margin of 496.5% and net margin of 349.4% are significantly higher than the sector averages of 22.0% and 17.8%, respectively. These high margins suggest that the company is efficient in managing its expenses and generating profits from its revenue. However, the sustainability of these high margins needs to be carefully evaluated, as they may be influenced by one-time gains or accounting adjustments.
The company's return on equity (ROE) of 9.0% is slightly above the sector average of 8.5%, indicating that it is generating a reasonable return on its shareholders' equity. However, its free cash flow (FCF) is negative at $-60.21 million, which is a cause for concern. Negative FCF suggests that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This could put pressure on its liquidity and financial flexibility.
PFS's balance sheet is characterized by a high debt-to-equity (D/E) ratio of 782.00, which is significantly higher than the sector average of 115.00. This high leverage increases the company's financial risk and makes it more vulnerable to economic downturns or adverse changes in interest rates. The company's current ratio of 1.13 indicates that it has sufficient current assets to cover its current liabilities, but the high debt level remains a concern. The total cash of $301.61 million provides some cushion, but it may not be sufficient to offset the high debt burden.
Valuation Assessment
Provident Financial Services' valuation appears attractive based on several key metrics. The company's price-to-earnings (P/E) ratio of 9.1x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its enterprise value-to-EBITDA (EV/EBITDA) ratio of 1.4x is substantially lower than the sector average of 3.5x, further indicating undervaluation.
However, it is important to consider the company's growth prospects when assessing its valuation. PFS's revenue growth of 0.5% is significantly lower than the sector average of 9.3%, which could justify a lower valuation multiple. Investors may be discounting the stock due to concerns about its ability to generate sustainable revenue growth in the future. The negative free cash flow also weighs on the valuation, as it reduces the company's ability to invest in growth opportunities or return capital to shareholders.
The company's high operating and net margins could also be contributing to its low valuation multiples. While these high margins are positive, they may not be sustainable in the long run, especially if the company faces increased competition or adverse changes in the economic environment. Investors may be skeptical about the company's ability to maintain these high margins, which could be reflected in its lower valuation multiples.
Overall, PFS's valuation appears to be a mixed bag. While its P/E and EV/EBITDA ratios suggest undervaluation, its low revenue growth and negative free cash flow warrant caution. The stock may be fairly valued given its current growth prospects and financial challenges. A significant improvement in revenue growth and free cash flow would be necessary to justify a higher valuation.
Risk & Uncertainty
Provident Financial Services faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is its high debt-to-equity ratio, which increases its financial leverage and vulnerability to economic downturns or adverse changes in interest rates. A significant increase in interest rates could increase the company's borrowing costs and reduce its profitability. Additionally, a decline in the value of its loan portfolio could lead to losses and further strain its financial resources.
Another risk is the company's regional concentration in the northern and central New Jersey, Pennsylvania, and New York counties. This geographic concentration makes it more susceptible to economic conditions and competitive pressures in these specific markets. A downturn in the local economy or increased competition from other banks or financial institutions could negatively impact its revenue and profitability.
Regulatory risks are also a concern for PFS, as the banking industry is heavily regulated. Changes in banking regulations could increase the company's compliance costs and restrict its ability to generate revenue. For example, stricter lending standards or capital requirements could reduce its loan volume and profitability. The company's ability to adapt to changing regulatory requirements will be crucial for its long-term success.
Competition from larger national banks and online lenders also poses a risk to PFS. These competitors may have greater resources and economies of scale, allowing them to offer more competitive rates and services. The rise of online banking and mobile payment platforms has also increased competition, as customers have more options for managing their finances. PFS's ability to differentiate itself from its competitors and provide superior service will be essential for maintaining its market share.
Bulls Say / Bears Say
The Bull Case
BULL VIEWProvident Financial Services' low valuation multiples, particularly its P/E and EV/EBITDA ratios, offer a compelling entry point for value investors seeking exposure to the financial sector.
BULL VIEWThe company's high operating and net margins demonstrate its efficiency and profitability, suggesting that it can generate strong returns even in a challenging economic environment.
BULL VIEWPFS's long history and established presence in its local markets provide a solid foundation for future growth and stability, allowing it to capitalize on opportunities in its regional footprint.
The Bear Case
BEAR VIEWProvident Financial Services' low revenue growth and negative free cash flow raise concerns about its long-term sustainability and ability to generate shareholder value.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and vulnerability to economic downturns or adverse changes in interest rates.
BEAR VIEWPFS's regional concentration and competition from larger national banks and online lenders limit its growth potential and competitive advantages.
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 PFS and 4,400+ other equities.
PROVIDENT FINANCIAL SERVICES INC exhibits a 1070% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
496.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
349.4%
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+101%
Income Projection audit
A $10,000 investment would generate approximately $498 annually in dividends at the current trailing rate.
