Ponce Financial Group Inc (PDLB) AI Stock Analysis

• Market Cap: $294.30M
• Dividend Yield: N/A
• Average Volume (3M): 45.21K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.12
• Revenue Growth: 27.46%
• EPS Growth: 206.86%
• Country: US
• Employees: 218
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.46
• Shares Outstanding: 23,966,190
• 10 Day Avg. Volume: 51,259
• 30 Day Avg. Volume: 45,210
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.75
• Price to Cash Flow (P/CF): 3.40
• P/FCF Ratio: 2.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Ponce Financial Group Inc's strong financial performance, characterized by revenue growth and a solid balance sheet with no debt, is a key strength. Technical indicators suggest a neutral trend, while valuation metrics hint at potential overvaluation. Positive corporate events further support the company's stability and strategic direction.

Ponce Financial Group Inc Business Overview & Revenue Model

Company Description

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It accepts various deposit products, including demand accounts, NOW/IOLA accounts, money market accounts, reciprocal deposits, savings accounts, and certificates of deposit. The company also provides one-to-four family investor-owned and owner-occupied residential, multifamily residential, nonresidential property, construction and land, commercial and industrial, business, and consumer loans; lines of credit; and paycheck protection program. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. It operates 4 banking offices in Bronx, 2 banking offices in Manhattan, 3 banking offices in Queens, and 3 banking offices in Brooklyn, New York; 1 banking office in Union City, New Jersey; and 2 mortgage loan offices in Queens, 1 mortgage loan office in Brooklyn, New York; and 1 mortgage loan office in Englewood Cliffs and 1 mortgage loan office in Bergenfield, New Jersey. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.

How the Company Makes Money

Ponce Financial Group Inc makes money primarily through the interest income generated from its lending activities, which include personal and commercial loans and mortgages. The company also earns revenue from fees associated with its banking services, such as account maintenance fees, transaction fees, and service charges. Additionally, Ponce Financial Group may generate income through investments and securities. The company's earnings are influenced by interest rate fluctuations, the demand for loans, and the overall economic environment in its operating regions.

Ponce Financial Group Inc Financial Statement Overview

Summary

Ponce Financial Group Inc demonstrates strong revenue growth and a solid balance sheet with no debt, reflecting financial stability. Profitability is improving, but there is room to enhance net margins and cash flow efficiency.

Income Statement

Ponce Financial Group Inc has shown strong revenue growth, with total revenue increasing significantly from $73.9M in 2023 to $162.6M in 2024. The company's gross profit margin remains healthy at 100% due to its banking nature. However, the net profit margin is modest at 6.7%, indicating room for improvement in controlling costs. The EBIT margin improved dramatically from previous years, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is strong with no total debt reported in 2024, resulting in a debt-to-equity ratio of 0. This indicates a low financial risk. The equity ratio is approximately 16.6%, showing a stable capital structure. Return on equity (ROE) is decent at 2.2%, with potential for growth as the company continues to enhance profitability.

Cash Flow

The operating cash flow has improved slightly, but the free cash flow growth rate is not substantial. The operating cash flow to net income ratio is favorable, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio indicates that cash flow from operations is not significantly exceeding net income, highlighting potential constraints in cash flow flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
162.64M	73.87M	70.97M	69.33M	49.59M
	Gross Profit
162.64M	69.08M	65.86M	64.76M	49.59M
	EBIT
155.78M	4.37M	-24.96M	33.62M	5.24M
	EBITDA
0.00	10.38M	-32.58M	36.10M	7.75M
	Net Income Common Stockholders
10.97M	3.35M	-30.00M	25.41M	3.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.45M	139.19M	185.36M	269.73M	92.31M
	Total Assets
3.04B	2.75B	2.31B	1.65B	1.36B
	Total Debt
626.80M	717.11M	551.91M	121.34M	148.70M
	Net Debt
486.71M	577.67M	496.05M	-35.04M	73.88M
	Total Liabilities
2.53B	2.26B	1.82B	1.46B	1.20B
	Stockholders Equity
505.50M	491.39M	492.70M	189.26M	159.54M
Cash Flow		Free Cash Flow
7.21M	6.08M	9.31M	14.38M	-29.40M
	Operating Cash Flow
7.21M	6.49M	9.80M	18.55M	-27.50M
	Investing Cash Flow
-294.90M	-332.91M	-777.06M	-211.14M	-204.60M
	Financing Cash Flow
288.33M	411.25M	667.73M	274.40M	276.50M

Ponce Financial Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDLB, the sentiment is Negative. The current price of 11.78 is below the 20-day moving average (MA) of 12.66, below the 50-day MA of 13.02, and below the 200-day MA of 11.79, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PDLB.

Ponce Financial Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNOB	74 Outperform	$829.27M	12.31	5.99%	3.33%	6.06%	-15.21%
NBTB	73 Outperform	$1.87B	13.37	9.53%	3.45%	18.58%	11.39%
OCFC	73 Outperform	$882.46M	9.15	5.95%	5.31%	7.54%	-2.82%
INDB	72 Outperform	$2.36B	12.26	6.52%	4.15%	6.21%	-16.59%
PDLB	66 Neutral	$294.30M	25.70	2.20%	―	27.46%	206.86%
Sector *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%
KRNY	50 Neutral	$371.98M	―	-8.79%	7.64%	11.26%	-498.90%

Ponce Financial Group Inc Corporate Events

Ponce Financial Group Reports Strong 2024 Financial Results

Ponce Financial Group, Inc. reported its financial results for the fourth quarter and full year of 2024, showcasing a significant improvement in net income compared to the previous year. The company saw an 8.97% increase in net interest income for the quarter and a 20.54% increase from the same quarter last year, alongside a rise in net interest margin to 2.80%. Full-year net income for 2024 reached $10.3 million, a substantial increase from 2023. The company also reported growth in net loans receivable and deposits. Notably, an agreement with the U.S. Treasury positions Ponce Financial to potentially repurchase its ECIP preferred shares, contingent upon meeting specific conditions, highlighting its strategic moves aimed at strengthening financial stability and operational efficiency.