Ponce Financial Group Inc (PDLB) AI Stock Analysis

• Market Cap: $338.91M
• Dividend Yield: N/A
• Average Volume (3M): 39.80K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.95
• Revenue Growth: 17.80%
• EPS Growth: 86.24%
• Country: US
• Employees: 211
• Sector: Financial
• Sector Strength: 67
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 24,001,125
• 10 Day Avg. Volume: 44,587
• 30 Day Avg. Volume: 39,796
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.17
• Enterprise Value/Revenue: 6.44
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 103.12
• 1Y Price Target: $15.50
• Price Target Upside: 11.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $15.50 ▲(11.43% Upside)

Ponce Financial Group Inc's overall stock score reflects its strong financial recovery, positive technical indicators, and strategic initiatives. While the valuation is fair, the company's growth initiatives and improved financial performance are significant strengths. The absence of dividend yield slightly tempers the score.

Ponce Financial Group Inc Business Overview & Revenue Model

Company Description

Ponce Financial Group Inc (PDLB) operates as a bank holding company that provides a range of financial services primarily through its wholly-owned subsidiary, Ponce Bank. The company is headquartered in New York, serving both individual and business customers. Ponce Bank offers a variety of deposit products, loan services, and other traditional banking services, catering to the financial needs of its community-based clientele.

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
EBITDA	0.00	10.38M	-32.58M	36.10M	7.75M
Net Income	10.97M	3.35M	-30.00M	25.41M	3.85M
Balance Sheet
Total Assets	3.04B	2.75B	2.31B	1.65B	1.36B
Cash, Cash Equivalents and Short-Term Investments	245.06M	139.19M	185.36M	269.73M	92.31M
Total Debt	626.80M	717.11M	551.91M	121.34M	148.70M
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: 13.91
• 50DMA: Positive
• 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 Positive. The current price of 13.91 is below the 20-day moving average (MA) of 14.05, above the 50-day MA of 13.77, and above the 200-day MA of 13.01, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, 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
FNLC	77 Outperform	$281.85M	9.71	11.76%	5.85%	12.08%	9.69%
RBB	74 Outperform	$330.14M	14.42	4.47%	3.47%	-0.13%	-32.16%
CZFS	70 Outperform	$252.00M	7.96	10.53%	3.62%	2.41%	15.34%
PDLB	69 Neutral	$338.91M	19.72	3.42%	―	17.80%	86.24%
BCML	68 Neutral	$297.74M	12.41	7.50%	2.22%	1.75%	2.76%
Sector *	67 Neutral	$17.04B	11.59	9.79%	3.95%	10.64%	1.81%
BRBS	41 Neutral	$324.59M	―	-0.06%	―	-20.44%	99.91%

Ponce Financial Group Inc Corporate Events

Ponce Financial Reports Q2 2025 Financial Growth

Ponce Financial Group, Inc. reported its second quarter 2025 financial results, showing a net income of $5.8 million, a slight increase from the previous quarter. The company saw significant growth in net interest income and net interest margin, reflecting its strategic focus on high-yielding loans and reduced borrowing costs. Over the first half of 2025, the company’s net income doubled compared to the same period in 2024, driven by increased interest and non-interest income while maintaining stable expenses. The company is also progressing towards its commitments under the U.S. Treasury’s Emergency Capital Investment Program, achieving a high percentage of deep impact lending, which is crucial for maintaining favorable dividend rates on preferred stock.

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.