Ponce Financial Group Inc (PDLB) AI Stock Analysis

• Market Cap: $316.60M
• Dividend Yield: N/A
• Average Volume (3M): 39.59K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.93
• Revenue Growth: 20.07%
• EPS Growth: 147.42%
• Country: US
• Employees: 211
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 23,984,800
• 10 Day Avg. Volume: 36,113
• 30 Day Avg. Volume: 39,595
• PEG Ratio: 0.04
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.72
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: 15.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $14.00 ▲(6.06%Upside)

Ponce Financial Group Inc's overall stock score reflects strong financial recovery and growth, bolstered by positive corporate events and strategic initiatives. Technical analysis suggests a potential for reversal, although valuation metrics indicate moderate attractiveness. The absence of dividend yield is a minor detractor.

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 primarily through the interest income obtained from its lending activities, which include residential, commercial real estate, and consumer loans. The company also earns income from service charges on deposit accounts and other banking-related fees. Additionally, Ponce Bank invests in securities, which contribute to its interest income. The company's earnings are further supported by strategic partnerships and initiatives aimed at expanding its customer base and enhancing its service offerings.

Ponce Financial Group Inc Financial Statement Overview

Summary

Ponce Financial Group Inc showcases strong revenue growth and a solid balance sheet with no debt, reflecting financial stability. The company's profitability is improving, though there is room to enhance net margins. Cash flow efficiency remains a concern, with potential constraints highlighted in free cash flow generation.

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
81.14M	73.87M	70.97M	69.33M	49.59M
	Gross Profit
81.14M	69.08M	65.86M	64.76M	49.59M
	EBIT
15.69M	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
245.06M	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
4.49M	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: Positive
• Last Price: 13.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDLB, the sentiment is Positive. The current price of 13.2 is below the 20-day moving average (MA) of 13.29, above the 50-day MA of 12.90, and above the 200-day MA of 12.57, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDLB.

Ponce Financial Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCML	74 Outperform	$293.00M	12.68	7.28%	2.98%	2.11%	-5.15%
CZFS	72 Outperform	$270.65M	9.51	9.62%	3.48%	9.53%	63.45%
FNLC	71 Outperform	$265.05M	9.40	11.19%	6.04%	13.08%	1.42%
RBB	71 Outperform	$292.35M	14.20	4.09%	3.88%	-4.09%	-44.36%
PDLB	68 Neutral	$316.60M	22.05	2.88%	―	20.07%	147.42%
Sector *	65 Neutral	$12.76B	9.91	7.89%	78.91%	12.06%	-7.95%
BRBS	44 Neutral	$299.98M	―	-4.98%	―	-16.75%	86.60%

Ponce Financial Group Inc Corporate Events

Ponce Financial Group Highlights Growth at Annual Meeting

On June 12, 2025, Ponce Financial Group, Inc. held its annual stockholder meeting where key decisions were made, including the election of directors and the ratification of an accounting firm. The company highlighted significant growth, with assets reaching $3 billion and net income increasing by over 200% in 2024. Ponce Bank is focusing on community impact through initiatives like affordable housing loans and digital banking expansion, positioning itself for continued success despite economic uncertainties.

Ponce Financial Group Plans National Bank Conversion

On May 13, 2025, Ponce Financial Group, Inc. announced that Ponce Bank plans to convert to a national bank to enhance its banking capabilities, including eligibility for municipal deposits in New York. The company has applied to become a bank holding company, but does not anticipate significant changes to its core business operations.

Ponce Financial Group Reports Strong Q1 2025 Results

Ponce Financial Group, Inc. reported strong financial results for the first quarter of 2025, with net income available to common stockholders reaching $5.7 million, a significant increase from previous periods. The company’s strategic focus on net interest margin, operating expenses, and fee income contributed to positive trends, including an 18 basis point increase in net interest margin. The company’s construction lending initiatives, which qualify as Deep Impact lending, have also been beneficial in reducing dividends payable on preferred stock, reflecting conservative underwriting and high developer equity requirements.