Ponce Financial Group Inc (PDLB) AI Stock Analysis

• Market Cap: $405.86M
• Dividend Yield: N/A
• Average Volume (3M): 73.13K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.79
• Revenue Growth: 16.03%
• EPS Growth: 145.10%
• Country: US
• Employees: 211
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.27
• Shares Outstanding: 24,001,125
• 10 Day Avg. Volume: 72,499
• 30 Day Avg. Volume: 73,130
• 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: 2.68
• Enterprise Value/Revenue: 5.83
• Enterprise Value/Gross Profit: 11.44
• Enterprise Value/Ebitda: 31.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $17.50 ▲(9.58% Upside)

Ponce Financial Group Inc's overall stock score is driven by strong financial performance and positive corporate events. The bullish technical indicators further support the stock's potential. However, the moderate valuation and absence of a dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Transition to National Bank

Transitioning to a national bank expands operational capabilities and market reach, providing structural growth opportunities.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility and supports sustainable growth and strategic investments.

Negative Factors

Debt Levels

High debt levels can strain financial resources and limit strategic options, posing long-term risks if not managed effectively.

Moderate Profit Margins

Moderate profit margins suggest room for improvement in operational efficiency, which could impact long-term profitability.

Operating Cash Flow Challenges

Challenges in converting operating activities into cash could affect liquidity and limit the ability to finance growth initiatives.

Ponce Financial Group Inc Business Overview & Revenue Model

Company Description

Ponce Financial Group Inc (PDLB) is a financial services company that primarily operates in the banking and financial technology sectors. The company focuses on providing a range of financial products and services, including personal and commercial banking, consumer loans, and financial advisory services. Ponce Financial aims to serve diverse communities, emphasizing inclusivity and accessibility in financial solutions.

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

Ponce Financial Group Inc exhibits a positive financial trajectory with strong revenue growth, improved profitability, and robust cash flow generation. The company has made strides in managing its leverage, though it still carries a considerable debt load. Continued focus on operational efficiency and cash flow management will be crucial for sustaining its financial health.

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: Positive
• Last Price: 15.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 15.97 is above the 20-day moving average (MA) of 15.81, above the 50-day MA of 15.12, and above the 200-day MA of 13.97, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 73.82 is Negative, neither overbought nor oversold. The STOCH value of 91.10 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
USCB	78 Outperform	$350.44M	12.31	14.96%	2.07%	15.45%	52.68%
WTBA	76 Outperform	$397.77M	12.38	13.14%	4.21%	4.47%	49.09%
SFST	75 Outperform	$450.16M	17.21	7.65%	―	4.74%	86.27%
BWFG	74 Outperform	$384.89M	13.55	10.04%	1.61%	2.52%	85.94%
PDLB	73 Outperform	$405.86M	19.67	4.16%	―	16.03%	145.10%
FMAO	68 Neutral	$378.95M	11.96	8.98%	3.22%	6.52%	36.77%
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 Q3 2025 Earnings

Ponce Financial Group, Inc. reported a significant increase in net income for the third quarter of 2025, with net income available to common stockholders reaching $6.2 million, up from $5.8 million in the previous quarter and $2.2 million in the same period last year. The company has shown strong financial performance with increased net interest income and a higher net interest margin, reflecting improved profitability and operational efficiency. Additionally, Ponce Financial Group has been actively expanding its operations, including opening a new branch in Manhattan and modernizing its charter, which is expected to enhance its competitive edge and funding capabilities.

Ponce Financial Group Transitions to National Bank

On October 10, 2025, Ponce Financial Group, Inc. announced that its subsidiary, Ponce Bank, has successfully transitioned to a national bank, now operating as Ponce Bank, National Association. This change allows the bank to increase its powers, such as receiving municipal deposits in New York. Concurrently, Ponce Financial Group became a bank holding company and a financial holding company, enabling it to engage in a broader range of financial activities. Despite these changes, the company and the bank do not anticipate significant alterations to their core business operations.