Peoples Financial Services (PFIS) has wrapped up FY 2025 with fourth quarter revenue of US$45.8 million and EPS of US$1.20, alongside trailing twelve month revenue of US$187.6 million and EPS of US$5.92, capped by a trailing net profit margin of 31.6% versus 7.4% a year earlier. Over the past few quarters, revenue has moved from US$40.8 million in Q4 2024 to US$48.7 million in Q2 2025 before landing at US$45.8 million in Q4 2025. Quarterly EPS shifted from US$0.61 in Q4 2024 to US$1.70 in Q2 2025 and US$1.20 in Q4 2025, creating a backdrop in which higher recent profitability and a 4.74% dividend yield are putting margins and earnings quality firmly in focus for investors.

See our full analysis for Peoples Financial Services.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the prevailing narratives around growth, quality, and income, and where those stories might need a rethink.

Margin and Cost Metrics Set the Tone

• Across FY 2025, net interest margin sat in a fairly tight range of 3.5% to 3.7%, while the cost to income ratio moved between 53.9% and 59.53%, giving you a clear view of how much Peoples Financial Services is earning on loans versus what it spends to run the bank.
• What stands out for a bullish view is how these banking metrics sit alongside a trailing 12 month net profit margin of 31.6% and a very large year over year earnings jump, which heavily supports the idea of improved profitability, yet:
  • Consensus style rewards data highlight that earnings over the past year rose by roughly 7x versus a five year average earnings decline of 3.7% per year, so the strong margin period contrasts with a weaker longer run record.
  • Net interest margin at 3.58% on a trailing basis is higher than the 2.84% level reported a year earlier, while the cost to income ratio moved from 63.8% to 56.45%, so the profitability picture today looks stronger than it did in the prior year according to these specific banking measures.

Loan Book And Credit Quality Shift

• Total loans were just over US$4.0b at US$4,066.9 million in Q4 2025, and non performing loans on a trailing 12 month view went from US$23.7 million at the start of the period to US$11.3 million by Q4 2025, which shows how much of the loan book was tagged as not performing at each point.
• For investors thinking in a more cautious, bearish way, this credit picture interacts with the big earnings swing in a few important ways:
  • Bears may point to the five year earnings decline of 3.7% per year as a sign that strong trailing 12 month results could sit against a longer period where the bank did not grow earnings, even though non performing loans are lower at US$11.3 million than the US$23.7 million level shown a year earlier in the trailing data.
  • Net income on a trailing basis is US$59.2 million versus US$8.5 million a year earlier, which is a very large jump, so skeptics might question how durable this level of performance is when they look back at prior periods that included a quarterly net income loss of US$4.3 million in Q3 2024.

On the back of these swings in earnings and credit quality, some investors will want to dig into how much of the recent improvement they think can stick over time. 🐻 Peoples Financial Services Bear Case

Valuation, Yield And Earnings Trend Tension

• With the share price at US$52.10, the stock trades at a P/E of 8.8x, below both the reported P/E for peers at 13.8x and the US Banks industry at 11.8x, while the DCF fair value is stated at US$79.83 and the trailing dividend yield sits at 4.74%.
• Supporters taking a bullish angle see this combination of valuation and income as compelling, yet the numbers also invite a closer look:
  • The DCF fair value of US$79.83 is well above the current US$52.10 share price and the company pays a 4.74% dividend yield, which heavily supports bullish arguments that investors are paying less than this model based value while collecting income.
  • At the same time, earnings are forecast to grow 8.7% per year following a very large year over year earnings increase and a five year earnings decline of 3.7% per year, so the strong recent jump and modest forecasted growth rate sit side by side and give bulls and bears different parts of the same story to focus on.

When you put the lower P/E, DCF fair value gap, and dividend together with the mixed earnings track record, it creates a useful starting point for forming your own view of whether the recent profitability is enough to justify today’s pricing. 📊 Read the full Peoples Financial Services Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Peoples Financial Services's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Peoples Financial Services pairs a very large recent earnings jump with a five year earnings decline of 3.7% per year and past quarterly losses, which may concern investors who prefer steadier trends.

If that kind of stop start record makes you uneasy, you may want to look at CTA_SCREENER_STABLE_GROWTH to focus on companies that have already been filtered for more consistent revenue and earnings momentum.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.