Provident Financial Holdings (PROV) AI Stock Analysis

• Market Cap: $103.59M
• Dividend Yield: 3.5%
• Average Volume (3M): 8.84K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.35
• Revenue Growth: 0.99%
• EPS Growth: -16.23%
• Country: US
• Employees: 94
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 6,474,230
• 10 Day Avg. Volume: 9,911
• 30 Day Avg. Volume: 8,842
• PEG Ratio: -1.36
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 12.77
• Enterprise Value/Market Cap: 2.56
• Enterprise Value/Revenue: 4.40
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: 21.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $16.00 ▼(-0.62% Downside)

Provident Financial Holdings' overall stock score is primarily influenced by its stable financial performance and attractive valuation. The company's strong cash flow and profitability are offset by challenges in revenue growth and high leverage. Technical analysis indicates a bearish trend, which weighs on the score. The earnings call provided a cautiously optimistic outlook, but highlighted challenges in loan growth and increased nonperforming assets.

Positive Factors

Net Interest Margin Expansion

The increase in net interest margin indicates improved profitability from lending activities, which can enhance long-term earnings stability and competitiveness.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Capital Management

Effective capital management through dividends and buybacks demonstrates a commitment to shareholder value and financial discipline.

Negative Factors

High Leverage

Significant leverage poses risks, especially in rising interest rate environments, potentially impacting financial stability and flexibility.

Declining Revenue Growth

Decreasing revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic initiatives to reverse the trend.

Increased Nonperforming Assets

Rising nonperforming assets can strain financial resources and indicate potential weaknesses in credit risk management, affecting profitability.

Provident Financial Holdings Business Overview & Revenue Model

Company Description

Provident Financial Holdings, Inc. (PROV) is a financial services company primarily engaged in the banking sector. The company operates through its wholly-owned subsidiary, Provident Savings Bank, which offers a range of financial products and services, including residential and commercial real estate loans, consumer loans, and deposit accounts. Headquartered in Riverside, California, PROV serves a diverse customer base and focuses on providing personalized banking solutions while maintaining a commitment to community involvement and support.

How the Company Makes Money

Provident Financial Holdings generates revenue primarily through interest income from loans and fees associated with its banking services. A significant portion of its earnings comes from the interest charged on various loan products, including mortgages, home equity lines of credit, and commercial loans. Additionally, the company earns non-interest income from service fees, transaction fees, and other banking-related activities. The bank's ability to attract deposits at competitive interest rates plays a crucial role in its funding strategy, allowing it to lend funds effectively. Partnerships with local businesses and real estate agencies also enhance its market reach and contribute to the company's overall revenue generation.

Provident Financial Holdings Financial Statement Overview

Summary

Provident Financial Holdings shows a mixed financial performance. While the company maintains strong gross profit margins and has improved free cash flow, it faces challenges with declining revenue growth and increased leverage. The balance sheet stability is a positive aspect, but the company needs to address operational efficiency and leverage to ensure sustainable growth.

Income Statement

Provident Financial Holdings has experienced fluctuating revenue growth, with a significant decline in the most recent year. Gross profit margins remain strong, but net profit margins have decreased. The EBIT and EBITDA margins have also seen a decline, indicating pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage, which could pose a risk. Return on equity has decreased, reflecting lower profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has shown significant growth recently, indicating improved cash generation. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. The free cash flow to net income ratio is strong, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	60.14M	60.16M	58.67M	50.07M	39.45M	39.77M
Gross Profit	39.82M	39.67M	38.93M	40.69M	38.77M	35.92M
EBITDA	12.31M	12.36M	13.54M	15.60M	17.71M	16.45M
Net Income	6.04M	6.25M	7.35M	8.59M	9.09M	7.56M
Balance Sheet
Total Assets	1.23B	1.25B	1.27B	1.33B	1.19B	1.18B
Cash, Cash Equivalents and Short-Term Investments	49.66M	53.16M	53.23M	68.00M	26.09M	73.86M
Total Debt	213.07M	213.07M	238.50M	235.01M	85.00M	100.98M
Total Liabilities	1.10B	1.12B	1.14B	1.20B	1.06B	1.06B
Stockholders Equity	128.37M	128.54M	129.94M	129.69M	128.65M	127.28M
Cash Flow
Free Cash Flow	8.22M	8.15M	4.10M	15.58M	11.63M	11.35M
Operating Cash Flow	8.62M	8.69M	5.68M	16.32M	11.79M	11.57M
Investing Cash Flow	25.91M	26.46M	45.06M	-109.90M	-51.75M	-55.87M
Financing Cash Flow	-33.31M	-33.43M	-65.22M	136.01M	-6.90M	-1.47M

Provident Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROV, the sentiment is Positive. The current price of 16.1 is above the 20-day moving average (MA) of 15.61, above the 50-day MA of 15.48, and above the 200-day MA of 15.05, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PROV.

Provident Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNB	75 Outperform	$109.02M	9.56	15.11%	6.08%	14.52%	27.90%
AUBN	72 Outperform	$95.03M	12.68	8.22%	3.97%	24.17%	739.42%
MGYR	69 Neutral	$114.18M	11.32	8.51%	1.81%	12.08%	27.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PROV	63 Neutral	$103.59M	17.72	4.68%	3.50%	0.99%	-16.23%
RVSB	61 Neutral	$109.98M	23.20	2.90%	1.51%	8.77%	369.81%
PBHC	49 Neutral	$86.17M	80.09	2.26%	2.87%	0.84%	―

Provident Financial Holdings Corporate Events

Provident Financial Holds Annual Shareholder Meeting

Provident Financial Holdings held its virtual Annual Meeting of Shareholders on November 20, 2025, where 88.20% of eligible votes were represented. Shareholders elected three directors, approved executive compensation, and ratified the appointment of Deloitte & Touche, LLP as the independent auditor for the fiscal year ending June 30, 2026.

Provident Financial Holdings Reports Q1 Fiscal 2026 Results

On October 28, 2025, Provident Financial Holdings reported its financial results for the first quarter of fiscal 2026, ending September 30, 2025. The company achieved a net income of $1.68 million, marking a 3% increase from the previous quarter but a 12% decrease from the same period last year. The net interest margin improved to 3.00%, and the company saw a significant recovery from credit losses due to lower mortgage interest rates. However, total deposits and loans held for investment slightly declined. The company continues its stock buyback program and maintains a consistent cash dividend, with expectations of improving fundamentals despite challenges in balance sheet growth.

Provident Financial Holdings Declares Quarterly Cash Dividend

On October 23, 2025, Provident Financial Holdings, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on December 4, 2025, to shareholders of record as of November 13, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders, amidst a competitive banking environment and varying economic conditions.