ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Provident Financial Services's annualizedNet Income for the quarter that ended in Mar. 2026 was €274.8 Mil.
Provident Financial Services's average Total Assets over the quarter that ended in Mar. 2026 was €21,566.5 Mil. Therefore, Provident Financial Services's annualized ROA % for the quarter that ended in Mar. 2026 was 1.27%.
The historical rank and industry rank for Provident Financial Services's ROA % or its related term are showing as below:
FRA:PQ3'
s ROA % Range Over the Past 10 Years
Min: 0.6 Med: 1.06 Max: 1.27
Current: 1.24
During the past 13 years, Provident Financial Services's highest ROA % was 1.27%. The lowest was 0.60%. And the median was 1.06%.
FRA:PQ3's ROA % is ranked better than 66.71% of 1532
companies
in the Banks industry
Industry Median: 0.98
vs FRA:PQ3: 1.24
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Provident Financial Services ROA % Related Terms
Provident Financial Services ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Provident Financial Services's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Provident Financial Services ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Provident Financial Services's ROA % distribution charts can be found below:
* The bar in red indicates where Provident Financial Services's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Provident Financial Services (FRA:PQ3) has a ROA % of 1.27% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Provident Financial Services and its competitors. This is 20% above median its historical median of 1.06. Over the past decade, Provident Financial Services' ROA % has ranged from 0.60 to 1.27. According to the industry distribution chart, Provident Financial Services ranks #510 out of 1532 companies in the Banks industry, placing it in the top 33.3%.
Is Provident Financial Services' ROA % too high?
Provident Financial Services' current ROA % of 1.27% is 20% above median its 10-year median of 1.06. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 1.27. The Banks industry median ROA % is 0.98. Provident Financial Services' value of 1.27% is 29.6% above this industry median. Based on the distribution chart, Provident Financial Services ranks #510 out of 1532 companies in the Banks industry, which is above the industry midpoint. Overall, Provident Financial Services has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Provident Financial Services' ROA % compare to SBCF and BANC?
According to the Banks industry distribution chart, Provident Financial Services ranks #510 out of 1532 companies for ROA %. This puts Provident Financial Services in the upper half of its industry. The industry median ROA % is 0.98. Provident Financial Services' value of 1.27% is 29.6% above this benchmark. Historically, Provident Financial Services' own ROA % has ranged from 0.60 to 1.27 over the past decade. While the company's 10-year median is 1.06 vs. the industry median of 0.98, Provident Financial Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,532 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Provident Financial Services's current ROA % of 1.27% is 29.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Provident Financial Services and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Provident Financial Services's current ROA % is 1.27%, which is 20% above median its own 10-year median of 1.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Provident Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Provident Financial Services (FRA:PQ3) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.77, compared to a current price of €20.20 — trading 28.1% above its estimated fair value. The current ROA % is 1.27%, which is 20% above median its 10-year median of 1.06 and 29.6% above the Banks industry median of 0.98. Provident Financial Services' overall GF Score™ is 54/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Provident Financial Services (FRA:PQ3), the current ROA % is 1.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Provident Financial Services (FRA:PQ3) Overvalued in 2026?
Based on GuruFocus' analysis, Provident Financial Services stock appears to be overvalued.
The current stock price of €20.20 is trading 28.1% above its estimated GF Value™ of €15.77.
GuruFocus considers Provident Financial Services to be Modestly Overvalued.
Key valuation signals for FRA:PQ3:
ROA %: 1.27% (20% above median its 10-year median of 1.06)
GF Value™: €15.77 vs. price of €20.20 (28.1% above fair value)
Industry Position: 29.6% above the Banks median (#510 of 1532)
No single metric tells the full story. See the FRA:PQ3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Provident Financial Services Inc is the holding company for The Provident Bank, a community-oriented bank. The company's operations are solely in the financial services industry and include providing traditional banking and other financial services to its customers. The company operates in the geographical regions of northern and central New Jersey, Queens and Nassau Counties in New York and eastern Pennsylvania. The company has a single reporting segment for financial reporting purposes. The majority of the revenue-generating activities that are components of non-interest income. These revenue streams can generally be classified into three broad categories: wealth management revenue, insurance agency income, and banking service charges and other fees.
54GF Score
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