Peoples Financial Services (PFIS) AI Stock Analysis

• Market Cap: $444.57M
• Dividend Yield: 5.09%
• Average Volume (3M): 24.14K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.95
• Revenue Growth: 40.44%
• EPS Growth: -70.58%
• Country: US
• Employees: 511
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): 1.12
• Shares Outstanding: 9,997,069
• 10 Day Avg. Volume: 22,786
• 30 Day Avg. Volume: 24,137
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.96
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 2.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Peoples Financial Services has a moderate overall score. Its strengths lie in solid revenue growth and a strong equity base, but challenges include declining profit margins and cash flow volatility. The technical indicators show bearish trends, and the high P/E ratio suggests potential overvaluation, though the attractive dividend yield offers some valuation support. Recent leadership changes and a strategic merger could positively impact future performance.

Peoples Financial Services Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Peoples Financial Services Corp. generates revenue primarily through interest income from its loan portfolio, which includes personal, business, and real estate loans. Additionally, the company earns income from non-interest sources such as service charges on deposit accounts, fees from wealth management and investment advisory services, and transaction fees. PFIS also benefits from its investment securities portfolio, contributing to its overall earnings. The company's partnerships with financial service providers and its strategic focus on community banking enable it to maintain a diversified revenue stream, ensuring consistent financial performance.

Peoples Financial Services Financial Statement Overview

Summary

Peoples Financial Services demonstrates solid financial health with consistent revenue growth and a strong cash flow position. The balance sheet remains stable with moderate leverage. However, profitability margins have contracted, impacting the income statement score. The company should focus on improving profitability margins and managing debt to sustain long-term growth.

Income Statement

Peoples Financial Services shows a stable revenue growth trend, with a significant increase from $90.64M in 2019 to $172.56M in the TTM period. However, the net profit margin has declined from 30.5% in 2020 to 3.5% in the TTM period, indicating pressure on profitability. The gross profit margin is impressive at 116.8% for TTM, suggesting strong revenue generation capabilities.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio of 0.4 in TTM, indicating moderate leverage. The equity ratio is stable at 8.9% in TTM, reflecting a solid equity base. Although stockholders' equity has grown consistently, the total debt has also increased, which could pose potential risks if not managed properly.

Cash Flow

Operating cash flow has increased to $39.85M in TTM, indicating strong cash generation. The free cash flow to net income ratio is 5.7 in TTM, showcasing efficient cash flow management. However, free cash flow growth has slowed, which might affect future liquidity if not addressed.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
172.56M	163.61M	108.07M	98.12M	96.44M	90.64M
	Gross Profit
201.66M	163.61M	108.07M	98.12M	96.44M	90.64M
	EBIT
13.29M	35.94M	64.62M	52.91M	34.17M	31.18M
	EBITDA
11.34M	36.00M	49.40M	57.16M	38.42M	33.10M
	Net Income Common Stockholders
6.04M	27.38M	38.09M	43.52M	29.35M	27.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.97M	187.37M	515.57M	554.83M	341.10M	361.63M
	Total Assets
541.45M	3.74B	3.55B	3.37B	2.88B	2.48B
	Total Debt
62.57M	75.59M	148.49M	35.71M	97.77M	184.88M
	Net Debt
54.60M	32.92M	110.62M	-1.80M	52.58M	153.73M
	Total Liabilities
494.79M	3.40B	3.24B	3.03B	2.57B	2.18B
	Stockholders Equity
46.66M	340.42M	315.35M	340.13M	316.88M	300.82M
Cash Flow		Free Cash Flow
34.69M	27.33M	34.53M	35.89M	34.89M	31.48M
	Operating Cash Flow
39.84M	33.25M	42.36M	40.77M	37.18M	37.08M
	Investing Cash Flow
314.30M	-25.75M	-467.82M	-440.10M	-201.24M	-184.72M
	Financing Cash Flow
-298.54M	142.00M	183.40M	451.07M	361.10M	146.18M

Peoples Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFIS, the sentiment is Negative. The current price of 44.61 is below the 20-day moving average (MA) of 45.47, below the 50-day MA of 48.25, and below the 200-day MA of 47.18, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 13.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PFIS.

Peoples Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUBI	75 Outperform	$1.60B	10.16	10.44%	―	-3.61%	-29.58%
UVSP	68 Neutral	$833.22M	11.12	8.80%	2.92%	11.77%	7.54%
CZNC	67 Neutral	$308.70M	11.83	9.58%	5.61%	3.55%	6.97%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
FULT	62 Neutral	$3.24B	11.33	9.69%	3.87%	21.10%	-4.20%
TMP	61 Neutral	$909.08M	12.68	10.25%	3.93%	41.65%	668.73%
PFIS	57 Neutral	$444.57M	44.93	2.10%	5.09%	40.44%	-70.58%

Peoples Financial Services Corporate Events

Peoples Financial Services Announces Key Leadership Changes

On January 31, 2025, Peoples Financial Services Corp. announced the appointments of James M. Bone, Jr. as Chief Financial Officer and John R. Anderson, III as Chief Operating Officer, effective March 31, 2025. This leadership change is part of a strategic move following PFIS’ merger with FNCB Bancorp, Inc., aiming to leverage the extensive experience of Mr. Bone and Mr. Anderson to enhance the company’s community banking services and strengthen its market position.