Ponce Financial Group Inc (PDLB) AI Stock Analysis

• Market Cap: $355.70M
• Dividend Yield: N/A
• Average Volume (3M): 39.25K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.90
• Revenue Growth: 17.80%
• EPS Growth: 86.24%
• Country: US
• Employees: 211
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 24,001,125
• 10 Day Avg. Volume: 37,978
• 30 Day Avg. Volume: 39,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.02
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 12.10
• Enterprise Value/Ebitda: 37.78
• 1Y Price Target: $16.00
• Price Target Upside: 7.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $16.00 ▲(7.45% Upside)

Ponce Financial Group Inc's overall stock score is driven by strong financial performance and positive corporate events. The technical analysis supports a bullish trend, while the valuation suggests moderate pricing. The absence of a dividend yield and potential operational inefficiencies slightly temper the score.

Ponce Financial Group Inc Business Overview & Revenue Model

Company Description

Ponce Financial Group Inc (PDLB) is a financial services company primarily focused on providing banking and financial solutions to the underserved and Hispanic communities in the United States. The company operates through its banking subsidiary, offering a range of services including personal and business banking, loans, and financial education. Ponce Financial aims to enhance financial inclusion by delivering tailored products that meet the unique needs of its customers.

How the Company Makes Money

Ponce Financial Group generates revenue through various streams, primarily from interest income on loans, including personal loans, mortgages, and business loans provided to its customers. Additionally, the company earns fees from banking services, such as account maintenance fees, transaction fees, and other service-related charges. Ponce Financial may also generate income from investment activities and partnerships with other financial institutions that enable them to expand their service offerings. The company's focus on niche markets, particularly within Hispanic communities, allows it to establish strong customer relationships and drive loyalty, further contributing to its revenue growth.

Ponce Financial Group Inc Financial Statement Overview

Summary

Ponce Financial Group Inc exhibits strong financial recovery and growth, particularly in revenue and profitability, after a challenging year in 2022. The balance sheet remains solid with a growing equity base, although debt levels require careful monitoring. Cash flow generation is positive and improving, supporting the company's operational and strategic objectives. Overall, the financial outlook is optimistic, with prudent management of potential risks needed to sustain growth.

Income Statement

Ponce Financial Group Inc has demonstrated robust revenue growth, with a significant increase from $60.96M in 2020 to $172.64M in TTM 2025. The gross profit margin has been strong, maintaining over 45% throughout, and net profit margins have improved from negative figures in 2022 to 8.4% in TTM 2025. EBIT and EBITDA margins are also healthy, indicating operational efficiency. However, the company faced challenges in 2022 with negative EBIT and net income, but has since recovered well.

Balance Sheet

The balance sheet of Ponce Financial Group Inc shows a solid equity base with a consistent increase in stockholders' equity, reaching $513.89M in TTM 2025. The debt-to-equity ratio is moderate, reflecting manageable leverage, though there was an increase in total debt over the years. The equity ratio has remained stable, ensuring financial stability. However, the increase in total liabilities may pose a risk if not managed carefully.

Cash Flow

The company's cash flow statement indicates a positive trend in operating cash flows, increasing significantly in TTM 2025. Free cash flow has also improved, showing a strong recovery from 2022. The free cash flow to net income ratio suggests effective cash generation relative to net income. However, fluctuations in investing cash flow, particularly large outflows, could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.91M	167.29M	134.47M	87.12M	77.58M	60.96M
Gross Profit	88.69M	79.80M	72.89M	46.92M	66.61M	47.15M
EBITDA	28.41M	20.42M	10.38M	-32.58M	36.10M	7.75M
Net Income	17.43M	10.97M	3.35M	-30.00M	25.41M	3.85M
Balance Sheet
Total Assets	3.15B	3.04B	2.75B	2.31B	1.65B	1.36B
Cash, Cash Equivalents and Short-Term Investments	132.33M	245.06M	259.34M	185.36M	269.73M	92.31M
Total Debt	566.60M	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	521.09M	505.50M	491.39M	492.70M	189.26M	159.54M
Cash Flow
Free Cash Flow	26.29M	4.49M	6.08M	9.31M	14.38M	-29.40M
Operating Cash Flow	27.57M	7.21M	6.49M	9.80M	18.55M	-27.50M
Investing Cash Flow	-294.76M	-294.90M	-332.91M	-777.06M	-211.14M	-204.60M
Financing Cash Flow	290.67M	288.33M	411.25M	667.73M	274.40M	276.50M

Ponce Financial Group Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.89 is above the 20-day moving average (MA) of 14.48, above the 50-day MA of 14.16, and above the 200-day MA of 13.23, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 is Negative, 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	$304.93M	10.49	11.76%	5.37%	12.08%	9.69%
RBB	76 Outperform	$353.47M	15.87	4.47%	3.11%	-0.13%	-32.16%
BCML	74 Outperform	$333.83M	14.02	7.50%	1.97%	1.75%	2.76%
CZFS	72 Outperform	$297.81M	9.41	10.53%	3.16%	2.41%	15.34%
PDLB	70 Outperform	$355.70M	20.88	3.42%	―	17.80%	86.24%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
BRBS	51 Neutral	$357.45M	―	-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.