Peoples Financial Services Corp. (NASDAQ: PFIS)

Sector: Financial Services Industry: Banks - Regional CIK: 0001056943
Market Cap 425.49 Mn
P/B 0.91
P/E 50.07
P/S 3.69
ROIC (Qtr) 6.49
Div Yield % 5.75
Rev 1y % (Qtr) 55.79
Total Debt (Qtr) 304.56 Mn
Debt/Equity (Qtr) 0.60

About

Peoples Financial Services Corp., often abbreviated as PFIS, operates in the banking industry, offering a plethora of financial services to its customers. The company's primary offerings include commercial and consumer loans, deposit services, and other fee-based products. PFIS's operations span across various markets, including numerous counties in Pennsylvania, New Jersey, and New York. The company has a robust presence in its legacy market, which encompasses the southern tier of New York and Northeastern Pennsylvania. In recent times, PFIS has...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 5.05B provides 16.60x coverage of total debt 304.56M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 41.15M exceeds capital expenditure of 351000 by 117.24x, indicating strong organic growth funding capability.
  • Retained earnings of 267.69M represent substantial 0.53x of equity 509.26M, indicating strong internal capital generation.
  • Retained earnings of 267.69M provide strong 2.54x coverage of intangibles 105.22M, indicating quality earnings retention.
  • Operating cash flow of 41.50M provides strong 118.24x coverage of capital expenditure 351000, enabling organic growth.

Bear case

  • Operating cash flow of 41.50M barely covers its investment activities of 113.82M, with a coverage ratio of 0.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 41.50M provides thin coverage of dividend payments of (24.63M) with a -1.68 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 179.92M provide limited coverage of acquisition spending of (744000), which is -241.83x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 41.50M shows concerning coverage of stock compensation expenses of (213000), with a -194.85 ratio indicating potential earnings quality issues.
  • Retained earnings of 267.69M provide limited buffer against comprehensive income items of (29.18M), which is -9.17x, indicating elevated exposure to market risks.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PNC Pnc Financial Services Group, Inc. 116.04 Bn 32.12 7.88 62.34 Bn
2 USB Us Bancorp \De\ 92.41 Bn 16.38 4.66 77.98 Bn
3 NU Nu Holdings Ltd. 81.91 Bn 32.39 5.82 4.49 Bn
4 NWG NatWest Group plc 65.96 Bn 9.79 3.02 169.04 Bn
5 TFC Truist Financial Corp 65.29 Bn -29.96 6.01 71.11 Bn
6 FITB Fifth Third Bancorp 34.56 Bn 14.24 4.21 18.94 Bn
7 RF Regions Financial Corp 34.00 Bn -44.56 11.28 6.09 Bn
8 CFG Citizens Financial Group Inc/Ri 33.38 Bn 38.59 7.16 10.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.06 0.13
EV to Cash from Ops. EV/CFO 9.72 10.77
EV to Debt EV to Debt 1.08 6.49
EV to EBIT EV/EBIT 38.96 6.25
EV to EBITDA EV/EBITDA 19.37 192.10
EV to Free Cash Flow [EV/FCF] EV/FCF 9.95 4.75
EV to Market Cap EV to Market Cap 0.78 1.03
EV to Revenue EV/Rev 2.86 5.61
Price to Book Value [P/B] P/B 0.91 1.83
Price to Earnings [P/E] P/E 50.07 26.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.16 273.23
Dividend Payout Ratio % Div Payout % (Qtr) 45.50 34.77
Dividend per Basic Share Div per Share (Qtr) 2.47 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 60.07 33.82
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 92.98 -74.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -36.97 16.02
Dividend Growth (1y) % Div 1y % (Qtr) 33.89 5.29
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 782.27 111.43
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 462.75 39.20
EBIT Growth (1y) % EBIT 1y % (Qtr) 821.85 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 821.85 61.56
EPS Growth (1y) % EPS 1y % (Qtr) 417.14 76.44
FCF Growth (1y) % FCF 1y % (Qtr) 33.59 162.62
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 89.84 14.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.59 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.60 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.06
Times Interest Earned Times Interest Earned 0.00 -0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 41.40 148.90
EBIT Margin % EBIT Margin % (Qtr) 34.68 156.32
EBT Margin % EBT Margin % (Qtr) 34.68 155.57
Gross Margin % Gross Margin % (Qtr) 100.00 97.81
Net Profit Margin % Net Margin % (Qtr) 29.20 116.30