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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Provident Financial Services's 3-Year RORE % for the quarter that ended in Mar. 2026 was 28.16%.
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Provident Financial Services 3-Year RORE % Related Terms
Provident Financial Services 3-Year RORE % 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.
FRA:PQ3 vs BANC, BOH, SBCF: 3-Year RORE % Comparison
For the Banks - Regional subindustry, Provident Financial Services's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Provident Financial Services's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Provident Financial Services's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Provident Financial Services (FRA:PQ3) has a 3-Year RORE % of 28.16 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Provident Financial Services and its competitors. According to the industry distribution chart, Provident Financial Services ranks #213 out of 1472 companies in the Banks industry, placing it in the top 14.5%.
Is Provident Financial Services' 3-Year RORE % too high?
Provident Financial Services' current 3-Year RORE % is 28.16. The Banks industry median 3-Year RORE % is 9.91. Provident Financial Services' value of 28.16 is 184.3% above this industry median. Based on the distribution chart, Provident Financial Services ranks #213 out of 1472 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Provident Financial Services has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Provident Financial Services' 3-Year RORE % compare to BANC and BOH?
According to the Banks industry distribution chart, Provident Financial Services ranks #213 out of 1472 companies for 3-Year RORE %. This places Provident Financial Services in the top 15% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 9.91. Provident Financial Services' value of 28.16 is 184.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Banks company?
The median 3-Year RORE % among Banks companies is 9.91, based on 1,472 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Provident Financial Services's current 3-Year RORE % of 28.16 is 184.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Provident Financial Services and its competitors. For the Banks industry, the median 3-Year RORE % is 9.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Provident Financial Services's current 3-Year RORE % is 28.16. 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 Significantly Overvalued. The stock's GF Value™ is €15.44, compared to a current price of €21.40 — trading 38.6% above its estimated fair value. The current 3-Year RORE % is 28.16 and 184.3% above the Banks industry median of 9.91. Provident Financial Services' overall GF Score™ is 59/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Provident Financial Services (FRA:PQ3), the current 3-Year RORE % is 28.16 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 €21.40 is trading 38.6% above its estimated GF Value™ of €15.44.
GuruFocus considers Provident Financial Services to be Significantly Overvalued.
Key valuation signals for FRA:PQ3:
3-Year RORE %: 28.16
GF Value™: €15.44 vs. price of €21.40 (38.6% above fair value)
Industry Position: 184.3% above the Banks median (#213 of 1472)
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.
59GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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