Provident Financial Holdings (PROV) AI Stock Analysis

• Market Cap: $102.63M
• Dividend Yield: 3.61%
• Average Volume (3M): 6.81K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.22
• Revenue Growth: 5.62%
• EPS Growth: -5.99%
• Country: US
• Employees: 94
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.28
• Shares Outstanding: 6,621,150
• 10 Day Avg. Volume: 7,782
• 30 Day Avg. Volume: 6,809
• PEG Ratio: -4.35
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.84
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 6.25
• 1Y Price Target: $16.50
• Price Target Upside: 6.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $17.50 ▲(12.90%Upside)

Provident Financial Holdings is well-positioned with strong financial performance and positive earnings call sentiment, supported by favorable technical indicators. Challenges such as decreased loan origination and higher operating expenses slightly offset these strengths.

Provident Financial Holdings Business Overview & Revenue Model

Company Description

Provident Financial Holdings, Inc. (PROV) is a financial services company primarily engaged in providing community banking services. Headquartered in Riverside, California, the company operates through its wholly-owned subsidiary, Provident Savings Bank, F.S.B., offering a range of financial products and services including retail banking, mortgage banking, and investment services. The company serves individual and business customers by offering deposit products, residential and commercial real estate loans, consumer loans, and related financial services.

How the Company Makes Money

Provident Financial Holdings makes money primarily through its banking operations, which include generating interest income from loans and mortgages provided to customers. Additionally, the company earns revenue from service fees associated with deposit accounts, loan servicing, and other banking-related services. Interest income is a significant contributor to its revenue, derived from the difference between the interest earned on loans and mortgages and the interest paid on customer deposits. Furthermore, the company may also earn income from investment securities and other financial instruments. Factors such as prevailing interest rates, economic conditions, and regulatory changes can significantly impact the company's earnings.

Provident Financial Holdings Financial Statement Overview

Summary

Provident Financial Holdings demonstrates strong financial health with stable revenue growth and a debt-free balance sheet in the TTM period. Profit margins and return on equity have shown some weaknesses, which could impact future profitability. However, the company maintains strong cash flow management, ensuring liquidity and operational flexibility.

Income Statement

The company has shown consistent revenue growth over the years with a notable increase in the TTM period. Gross profit margins are strong at 100% due to the absence of cost of goods sold, indicating a service-oriented revenue stream. However, net profit margins have decreased in the TTM period to 11.46%, and there's a decline in EBIT and EBITDA margins, suggesting rising operational costs or other expenses impacting profitability.

Balance Sheet

Provident Financial Holdings maintains a conservative balance sheet with zero total debt in the TTM period, reducing financial risk. The equity ratio is relatively stable, contributing positively to financial health. However, there is a slight decline in return on equity to 4.84% in the TTM period, reflecting lower profitability relative to shareholder equity.

Cash Flow

The company shows a positive free cash flow in the TTM period, with a significant decrease in capital expenditures, enhancing cash reserves. The operating cash flow is robust compared to net income, although the free cash flow growth rate is fluctuating, indicating potential volatility in cash generation.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	55.80M	38.86M	41.06M	36.31M	39.77M	40.92M
Gross Profit	43.62M	38.86M	41.06M	36.31M	35.92M	40.92M
EBITDA	9.13M	0.00	12.42M	12.86M	16.45M	14.29M
Net Income	6.58M	7.35M	8.59M	9.09M	7.56M	7.69M
Balance Sheet
Total Assets	1.26B	1.27B	1.33B	1.19B	1.18B	1.18B
Cash, Cash Equivalents and Short-Term Investments	51.10M	51.38M	68.00M	26.09M	73.86M	116.03M
Total Debt	215.58M	238.50M	235.01M	85.00M	100.98M	141.05M
Total Liabilities	1.13B	1.14B	1.20B	1.06B	1.06B	1.05B
Stockholders Equity	128.88M	129.94M	129.69M	128.65M	127.28M	123.98M
Cash Flow
Free Cash Flow	5.14M	4.10M	15.58M	11.63M	11.35M	7.72M
Operating Cash Flow	5.45M	5.68M	16.32M	11.79M	11.57M	7.95M
Investing Cash Flow	27.91M	45.06M	-109.90M	-51.75M	-55.87M	-48.91M
Financing Cash Flow	-34.17M	-65.22M	136.01M	-6.90M	-1.47M	86.36M

Provident Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.50
• 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 PROV, the sentiment is Neutral. The current price of 15.5 is below the 20-day moving average (MA) of 15.62, above the 50-day MA of 15.47, and above the 200-day MA of 15.14, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 64.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PROV.

Provident Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PROV	74 Outperform	$102.63M	16.26	5.09%	3.61%	5.62%	-5.99%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
PBHC	67 Neutral	$93.41M	31.55	2.30%	3.29%	11.12%	53.85%
FGBI	64 Neutral	$148.02M	65.77	1.58%	1.27%	14.47%	-73.50%
BSBK	56 Neutral	$106.29M	―	-0.73%	―	-9.96%	-23.54%
FNWB	43 Neutral	$72.50M	―	-6.59%	3.51%	10.23%	-109.60%

Provident Financial Holdings Corporate Events

Provident Financial Appoints New CFO Peter C. Fan

On May 12, 2025, Provident Financial Holdings announced the appointment of Peter C. Fan as Senior Vice President, Chief Financial Officer, and Corporate Secretary, effective immediately. Mr. Fan brings extensive financial leadership experience from his previous roles at Royal Business Bank and Pacific Western Bank. His appointment is expected to strengthen Provident’s community banking focus and enhance its strategic corporate initiatives, liquidity and capital planning, and asset-liability management.

The most recent analyst rating on (PROV) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Provident Financial Holdings stock, see the PROV Stock Forecast page.

Provident Financial Reports Strong Q3 2025 Results

On April 28, 2025, Provident Financial Holdings announced its financial results for the third quarter of fiscal year 2025, ending March 31, 2025. The company reported a significant increase in net income to $1.86 million, up 113% from the previous quarter and 24% from the same quarter last year. This growth was driven by a rise in net interest income and a recovery of credit losses. The company also saw improvements in its net interest margin and maintained strong credit quality. Despite a decrease in net income for the nine months ending March 31, 2025, due to higher non-interest expenses, the company continues to actively engage in stock repurchase plans and maintain its quarterly cash dividend.