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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Jun. 2026, Provident Financial Services has a Sloan Ratio of 4.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Provident Financial Services (NYSE:PFS) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Provident Financial Services has a Sloan Ratio of 4.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Provident Financial Services Sloan Ratio % Related Terms
Provident Financial Services Sloan Ratio % 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 Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, Provident Financial Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Provident Financial Services's Sloan Ratio % falls into.
Provident Financial Services Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Provident Financial Services's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 71.72 (Sep. 2025 ) + 83.431 (Dec. 2025 ) + 79.417 (Mar. 2026 ) + 78.147 (Jun. 2026 ) = $312.7 Mil.
Provident Financial Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 98.034 (Sep. 2025 ) + 68.948 (Dec. 2025 ) + 84.652 (Mar. 2026 ) + 118.844 (Jun. 2026 ) = $370.5 Mil.
Provident Financial Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -242.306 (Sep. 2025 ) + -206.817 (Dec. 2025 ) + -232.388 (Mar. 2026 ) + -450.731 (Jun. 2026 ) = $-1,132.2 Mil.
* 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.
Provident Financial Services (PFS) has a Sloan Ratio % of 4.19% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Provident Financial Services and its competitors.
Is Provident Financial Services' Sloan Ratio % too high?
Provident Financial Services' current Sloan Ratio % is 4.19%. Overall, Provident Financial Services has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Provident Financial Services' Sloan Ratio % compare to SBCF and FBK?
Provident Financial Services' Sloan Ratio % of 4.19% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Banks company?
A good Sloan Ratio % depends on the Banks industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Provident Financial Services and its competitors. Provident Financial Services's current Sloan Ratio % is 4.19%. 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 (PFS) is currently considered Modestly Overvalued. The stock's GF Value™ is $20.12, compared to a current price of $25.01 — trading 24.3% above its estimated fair value. The current Sloan Ratio % is 4.19%. Provident Financial Services' overall GF Score™ is 58/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Provident Financial Services (PFS), the current Sloan Ratio % is 4.19% as of Jun. 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 (PFS) Overvalued in 2026?
Based on GuruFocus' analysis, Provident Financial Services stock appears to be overvalued.
The current stock price of $25.01 is trading 24.3% above its estimated GF Value™ of $20.12.
GuruFocus considers Provident Financial Services to be Modestly Overvalued.
Key valuation signals for PFS:
Sloan Ratio %: 4.19%
GF Value™: $20.12 vs. price of $25.01 (24.3% above fair value)
No single metric tells the full story. See the PFS 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.
58GF Score
Get the complete analysis for PFS
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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