Provident Financial Holdings (PROV) AI Stock Analysis

• Market Cap: $101.22M
• Dividend Yield: 3.53%
• 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: 4.46
• Enterprise Value/Gross Profit: 8.99
• Enterprise Value/Ebitda: 23.02
• 1Y Price Target: $16.00
• Price Target Upside: 5.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $17.00 ▲(11.77% Upside)

Provident Financial Holdings has a stable financial foundation with strong gross profit margins and improved cash flow, but faces challenges with revenue growth and leverage. The technical indicators suggest a stable price trend, while the valuation metrics are favorable with a reasonable P/E ratio and attractive dividend yield. The earnings call provided a cautiously optimistic outlook, highlighting improvements in loan origination and net interest margin, despite challenges in loan growth and increased nonperforming assets.

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	59.33M	60.16M	58.67M	50.07M	39.45M	39.77M
Gross Profit	29.45M	39.67M	38.93M	40.69M	38.77M	35.92M
EBITDA	11.50M	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	153.28M	162.49M	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	8.26M	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: Negative
• Last Price: 15.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROV, the sentiment is Negative. The current price of 15.21 is below the 20-day moving average (MA) of 15.64, below the 50-day MA of 15.66, and above the 200-day MA of 15.13, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%	4.08%	16.08%	739.42%
PROV	69 Neutral	$101.22M	17.13	4.68%	3.53%	0.99%	-16.23%
MGYR	69 Neutral	$108.50M	10.78	8.51%	1.70%	12.08%	29.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RVSB	61 Neutral	$116.05M	25.00	2.90%	1.44%	8.77%	369.81%
UNB	56 Neutral	$104.82M	11.01	―	6.25%	14.58%	7.73%
PBHC	48 Neutral	$93.33M	84.38	2.26%	2.65%	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.