Ponce Financial Group Inc (PDLB) AI Stock Analysis

• Market Cap: $392.18M
• Dividend Yield: N/A
• Average Volume (3M): 74.25K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.78
• Revenue Growth: 16.03%
• EPS Growth: 145.10%
• Country: US
• Employees: 211
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.42
• Shares Outstanding: 24,001,125
• 10 Day Avg. Volume: 131,028
• 30 Day Avg. Volume: 74,251
• PEG Ratio: 0.13
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 64.90
• Enterprise Value/Market Cap: 2.60
• Enterprise Value/Revenue: 5.46
• Enterprise Value/Gross Profit: 10.72
• Enterprise Value/Ebitda: 29.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $18.00 ▲(12.71% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

Overall score is driven primarily by solid financial performance (improving margins and strong free cash flow growth/conversion), with supportive but not strong technical momentum (uptrend with neutral RSI). Valuation is a modest headwind given a mid-range P/E and no dividend yield data.

Positive Factors

Free Cash Flow Strength

Very strong FCF growth and nearly 1:1 conversion indicate durable cash generation from earnings. This supports organic loan growth, balance sheet reinvestment, regulatory capital maintenance, and reduces reliance on external funding over the medium term.

Improving Profitability

Sustained improvement in gross and net margins reflects better pricing, cost control, and business mix. Higher margins increase earnings resilience through economic cycles and provide ongoing capacity to fund growth, reserves, and strategic initiatives.

Loan & Deposit Growth with Strong Capital

Robust loan and deposit expansion alongside healthy capital ratios signal scalable core banking growth and prudent risk buffers. This combination strengthens franchise funding stability and underpins durable earnings power while supporting community lending strategy.

Negative Factors

Elevated Leverage

Although leverage has improved, a D/E near 1.0 is still material for a regional bank. Persistent debt levels raise sensitivity to credit stress and interest costs, constrain capital flexibility for lending or buybacks, and heighten refinancing and funding risks.

Weak Operating Cash Conversion

Low operating cash conversion versus reported profits suggests reliance on non-cash items or financing to support operations. Over time this can strain liquidity, force greater reliance on wholesale funding, and make sustainable loan growth or capital returns more difficult without rate or balance sheet shifts.

Modest Return on Equity and Margins

ROE and operating margins remain moderate, limiting capital efficiency and shareholder return potential. Without material margin expansion or capital reallocation, the company may struggle to convert growth into high returns versus peers, slowing long-term value creation.

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 generates revenue through various channels, including interest income from loans and mortgages, fees from banking services, and commissions from financial advisory services. Key revenue streams include personal loans, small business lending, and deposit services. The company may also benefit from partnerships with other financial institutions and technology firms that enhance its service offerings and expand its customer base. Additionally, Ponce Financial's focus on underserved markets can contribute to its growth and revenue generation by tapping into a demand for accessible financial services.

Ponce Financial Group Inc Financial Statement Overview

Summary

Financial statements show improving profitability (TTM net margin 11.54%) and better efficiency in gross margin (50.98%), supported by strong free cash flow growth (63.75%) and high FCF-to-net income conversion (0.99). Balance sheet leverage has improved (debt-to-equity 1.04) but remains a key risk given the still meaningful debt load and modest ROE (4.15%).

Income Statement

Ponce Financial Group Inc has shown a consistent increase in revenue over the years, with a notable TTM revenue growth rate of 3.6%. The gross profit margin has improved to 50.98% in the TTM, indicating efficient cost management. The net profit margin has also increased to 11.54%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improving, remain moderate at 15.66% and 17.64% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has decreased to 1.04 in the TTM, showing improved leverage management compared to previous years. Return on equity has increased to 4.15%, indicating better utilization of equity to generate profits. However, the equity ratio remains stable, suggesting a balanced asset structure. Despite these improvements, the company still carries a significant amount of debt, which could pose risks if not managed carefully.

Cash Flow

Ponce Financial Group Inc has demonstrated strong cash flow performance with a significant free cash flow growth rate of 63.75% in the TTM. The free cash flow to net income ratio is high at 0.99, indicating efficient conversion of profits into cash. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting operating activities into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.37M	167.29M	134.47M	87.12M	77.58M	60.96M
Gross Profit	95.01M	79.80M	72.89M	46.92M	66.61M	47.15M
EBITDA	33.97M	20.42M	10.38M	-32.58M	36.10M	7.75M
Net Income	21.50M	10.97M	3.35M	-30.00M	25.41M	3.85M
Balance Sheet
Total Assets	3.16B	3.04B	2.75B	2.31B	1.65B	1.36B
Cash, Cash Equivalents and Short-Term Investments	241.65M	245.06M	259.34M	185.36M	269.73M	92.31M
Total Debt	551.13M	626.80M	717.11M	551.91M	121.34M	148.70M
Total Liabilities	2.63B	2.53B	2.26B	1.82B	1.46B	1.20B
Stockholders Equity	529.84M	505.50M	491.39M	492.70M	189.26M	159.54M
Cash Flow
Free Cash Flow	43.04M	4.49M	6.08M	9.31M	14.38M	-29.40M
Operating Cash Flow	43.52M	7.21M	6.49M	9.80M	18.55M	-27.50M
Investing Cash Flow	-174.82M	-294.90M	-332.91M	-777.06M	-211.14M	-204.60M
Financing Cash Flow	122.07M	288.33M	411.25M	667.73M	274.40M	276.50M

Ponce Financial Group Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDLB, the sentiment is Neutral. The current price of 15.97 is below the 20-day moving average (MA) of 16.71, below the 50-day MA of 16.64, and above the 200-day MA of 14.95, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 25.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PDLB.

Ponce Financial Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	76 Outperform	$347.18M	14.30	14.96%	2.10%	15.45%	52.68%
FMAO	72 Outperform	$362.72M	11.02	8.98%	3.18%	6.52%	36.77%
BWFG	71 Outperform	$377.25M	10.57	10.04%	1.66%	2.52%	85.94%
SFST	69 Neutral	$488.46M	15.89	7.65%	―	4.74%	86.27%
WTBA	69 Neutral	$411.32M	12.76	13.14%	4.39%	4.47%	49.09%
PDLB	68 Neutral	$392.18M	13.72	5.48%	―	16.03%	145.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Ponce Financial Group Inc Corporate Events

Ponce Financial Group Reports Strong Fourth-Quarter 2025 Earnings

On January 27, 2026, Ponce Financial Group, Inc. reported strong fourth-quarter 2025 results, with net income available to common shareholders rising to $9.9 million, or $0.42 per diluted share, up from $6.2 million in the third quarter and $2.7 million a year earlier, driven by higher interest and non-interest income and an improved net interest margin of 3.57%. For full-year 2025, net income available to common stockholders more than doubled to $27.6 million, supported by a 30% increase in net interest income, higher non-interest income, flat operating expenses and robust loan growth of 13.67% to $2.60 billion, while deposits rose 7.99% and capital ratios remained well above regulatory requirements; management highlighted improved efficiency, strong profitability metrics and continued progress toward high-impact community lending targets as key elements reinforcing the company’s strategic and competitive position.

The most recent analyst rating on (PDLB) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Ponce Financial Group Inc stock, see the PDLB Stock Forecast page.