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Provident Financial ServicesFRA:PQ3 58 5-Year Yield-on-Cost % is 4.21 as of Jul. 30, 2026, which is 3% below its 10-year median of 4.33. GuruFocus rates FRA:PQ3 with a GF Score™ of 58/100 and a GF Value™ of €15.55 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,251 Banks companies, Provident Financial Services ranks better than 55% on this metric.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Provident Financial Services 5-Year Yield-on-Cost % Related Terms
FRA:PQ3 vs SBCF, FBK, BANC: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, Provident Financial Services's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Provident Financial Services's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Provident Financial Services's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Provident Financial Services (FRA:PQ3) has a 5-Year Yield-on-Cost % of 4.21 as of Jul. 30, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Provident Financial Services and its competitors. This is near median its historical median of 4.33. Over the past decade, Provident Financial Services' 5-Year Yield-on-Cost % has ranged from 2.58 to 9.22. According to the industry distribution chart, Provident Financial Services ranks #563 out of 1251 companies in the Banks industry, placing it in the top 45%.
Is Provident Financial Services' 5-Year Yield-on-Cost % too high?
Provident Financial Services' current 5-Year Yield-on-Cost % of 4.21 is near median its 10-year median of 4.33. Over the past 10 years, this metric has ranged from a low of 2.58 to a high of 9.22. The Banks industry median 5-Year Yield-on-Cost % is 3.84. Provident Financial Services' value of 4.21 is 9.6% above this industry median. Based on the distribution chart, Provident Financial Services ranks #563 out of 1251 companies in the Banks industry, which is above the industry midpoint. Overall, Provident Financial Services has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Provident Financial Services' 5-Year Yield-on-Cost % compare to SBCF and FBK?
According to the Banks industry distribution chart, Provident Financial Services ranks #563 out of 1251 companies for 5-Year Yield-on-Cost %. This puts Provident Financial Services in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.84. Provident Financial Services' value of 4.21 is 9.6% above this benchmark. Historically, Provident Financial Services' own 5-Year Yield-on-Cost % has ranged from 2.58 to 9.22 over the past decade. While the company's 10-year median is 4.33 vs. the industry median of 3.84, 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 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.84, based on 1,251 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Provident Financial Services's current 5-Year Yield-on-Cost % of 4.21 is 9.6% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Provident Financial Services and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Provident Financial Services's current 5-Year Yield-on-Cost % is 4.21, which is near median its own 10-year median of 4.33. 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 €15.55, compared to a current price of €20.40 — trading 31.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 4.21, which is near median its 10-year median of 4.33 and 9.6% above the Banks industry median of 3.84. Provident Financial Services' overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Provident Financial Services (FRA:PQ3), the current 5-Year Yield-on-Cost % is 4.21 as of Jul. 30, 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 €20.40 is trading 31.2% above its estimated GF Value™ of €15.55.
GuruFocus considers Provident Financial Services to be Significantly Overvalued.
Key valuation signals for FRA:PQ3:
5-Year Yield-on-Cost %: 4.21 (near median its 10-year median of 4.33)
GF Value™: €15.55 vs. price of €20.40 (31.2% above fair value)
Industry Position: 9.6% above the Banks median (#563 of 1251)
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.
58GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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