Provident Financial Holdings (PROV) AI Stock Analysis

• Market Cap: $101.22M
• Dividend Yield: 3.66%
• Average Volume (3M): 8.84K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.22
• 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: 6,577,038
• 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: 2.62
• Enterprise Value/Revenue: 4.40
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: 21.50
• 1Y Price Target: $16.00
• Price Target Upside: 4.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $16.00 ▲(4.58% Upside)

Provident Financial Holdings' overall stock score is driven by stable financial performance and a cautiously optimistic earnings call. While the company shows solid profitability and cash flow, challenges such as high leverage and declining revenue growth pose risks. Technical analysis indicates potential bearish momentum, but valuation metrics suggest a fair market price. The positive sentiment from the earnings call, with improvements in loan origination and net interest margin, contributes to a moderately favorable outlook.

Positive Factors

Cash Generation Ability

Strong free cash flow growth indicates robust cash generation capabilities, providing the company with flexibility to invest in growth opportunities and manage debt.

Net Interest Margin Expansion

Improvement in net interest margin suggests better profitability from lending activities, enhancing the company's ability to generate income from its core operations.

Loan Origination Growth

Increased loan origination reflects growing demand for the company's loan products, supporting revenue growth and market position in the banking sector.

Negative Factors

High Leverage

High leverage can pose financial risks, especially in a rising interest rate environment, potentially impacting the company's ability to manage debt and invest in growth.

Declining Revenue Growth

Declining revenue growth suggests challenges in expanding the company's market presence and could impact long-term profitability if not addressed.

Increase in Nonperforming Assets

Rising nonperforming assets indicate potential credit quality issues, which could lead to higher loan loss provisions and affect overall financial health.

Provident Financial Holdings Business Overview & Revenue Model

Company Description

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. The company also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

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: 15.30
• 50DMA: Negative
• 100DMA: Negative
• 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 15.3 is above the 20-day moving average (MA) of 15.25, below the 50-day MA of 15.47, and above the 200-day MA of 14.99, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 42.92 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
AUBN	72 Outperform	$90.45M	12.65	8.22%	4.19%	24.17%	739.42%
MGYR	69 Neutral	$108.50M	10.78	8.51%	1.91%	12.08%	29.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNB	66 Neutral	$103.29M	9.09	15.11%	6.39%	14.52%	27.90%
PROV	62 Neutral	$101.22M	17.13	4.68%	3.66%	0.99%	-16.23%
RVSB	61 Neutral	$108.94M	23.43	2.90%	1.52%	8.77%	369.81%
PBHC	49 Neutral	$93.33M	84.38	2.26%	2.81%	0.84%	―

Provident Financial Holdings Corporate Events

Provident Financial Holdings Reports Q1 Fiscal 2026 Results

Provident Financial Holdings, Inc., a holding company for Provident Savings Bank, operates in the financial sector, primarily focusing on banking services in Riverside and San Bernardino Counties, California. The company is known for its community-focused banking approach and consistent dividend payments.

Provident Financial Holdings’ Optimistic Earnings Call Analysis

The recent earnings call of Provident Financial Holdings conveyed a cautiously optimistic sentiment. The company reported improvements in several financial metrics, such as loan origination and net interest margin expansion. However, it also acknowledged challenges, including increased nonperforming assets and difficulties in achieving significant loan growth due to prepayments.

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.

The most recent analyst rating on (PROV) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Provident Financial Holdings stock, see the PROV Stock Forecast page.

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.

The most recent analyst rating on (PROV) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Provident Financial Holdings stock, see the PROV Stock Forecast page.

Provident Financial Holdings Faces Compliance Challenges Amid Regulatory Shifts in DEI and ESG

Provident Financial Holdings faces significant business risks due to regulatory changes in diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) practices. The recent federal executive order, which shifts focus away from DEI initiatives, could increase compliance costs and operational complexity for the company. As financial institutions are under scrutiny from regulators and investors, Provident must navigate these changes carefully to avoid reputational damage, regulatory investigations, or litigation. Additionally, the potential for ESG ratings downgrades could impact their cost of capital and access to funding, making it crucial for Provident to align its practices with evolving legal obligations and stakeholder expectations.