Provident Financial Services, Inc. (PFS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+178.0%

$65.82

vs $23.68 price

Levered DCF

$89.61

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.27

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.86×	17.97×	10.48×	9.09×	11.01×	12.92×	14.17×	13.26×
P/B	0.91×	0.8×	0.8×	1×	1.09×	0.77×	1.13×	1.15×
P/S	1.86×	1.81×	1.94×	2.88×	3.79×	2.87×	3.66×	3.74×
EV / EBITDA	10.31×	20.99×	13.64×	10.45×	7.11×	13×	15.25×	18.61×
Gross margin	62.7%	53.2%	64.8%	90.3%	97.2%	81.1%	80.1%	80.2%
Operating margin	29.5%	13.1%	25.3%	43.3%	46.4%	29.3%	33.8%	34.4%
Net margin	21.1%	10.1%	18.5%	31.7%	34.3%	22.2%	25.9%	28.3%
Current ratio	0.18×	0.16×	0.19×	0.19×	0.25×	0.17×	0.17×	0.18×
Debt / equity	0.89×	0.93×	0.91×	0.84×	0.38×	0.74×	0.8×	1.06×
Interest coverage	0.8×	0.34×	0.81×	4.94×	6.25×	2.51×	2×	2.43×
Dividend yield	4.9%	4.9%	5.4%	4.5%	3.9%	5.3%	4.6%	3.4%
Payout ratio	43.2%	87.4%	56.4%	41.0%	42.6%	67.9%	64.6%	45.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.3%	4.4%	7.6%	11.0%	9.9%	6.0%	8.0%	8.7%
Return on invested capital	-1.9%	2.1%	3.3%	5.5%	6.7%	3.2%	4.2%	4.1%
Return on assets	1.2%	0.5%	0.9%	1.3%	1.2%	0.8%	1.1%	1.2%
Free cash flow yield	16.7%	20.5%	12.3%	12.0%	7.7%	7.2%	8.3%	9.7%
Earnings yield	11.3%	5.6%	9.5%	11.0%	9.1%	7.8%	7.1%	7.6%
Enterprise value	$4.9B	$4.3B	$2.7B	$2.8B	$1.8B	$1.9B	$2.5B	$2.9B
Net debt / EBITDA	4.87×	10.85×	6.82×	4.4×	-0.3×	4.53×	5.66×	8.44×
Cash conversion cycle (days)	25	29	31	34	31	39	24	27