Provident Financial Holdings (PROV) AI Stock Analysis

• Market Cap: $102.60M
• Dividend Yield: 3.59%
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.22
• Revenue Growth: 2.53%
• EPS Growth: -12.02%
• Country: US
• Employees: 94
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 0.24
• Shares Outstanding: 6,577,038
• 10 Day Avg. Volume: 7,530
• 30 Day Avg. Volume: 5,181
• PEG Ratio: -0.99
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 20.83
• Enterprise Value/Market Cap: 2.58
• Enterprise Value/Revenue: 4.37
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: 20.81
• 1Y Price Target: $16.50
• Price Target Upside: 6.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $16.50 ▲(6.45% Upside)

Provident Financial Holdings maintains a relatively stable position with consistent revenue growth and effective cash flow management. The main challenges include declining profitability and bearish momentum in technical indicators. The mixed results from the earnings call reflect both opportunities and challenges in the current financial landscape.

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 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 exhibits solid financial performance with consistent revenue growth and effective cash flow management. However, the decline in profitability margins and moderately high leverage suggests room for improvement.

Income Statement

Provident Financial Holdings has shown consistent revenue growth with a solid TTM (Trailing-Twelve-Months) revenue of $60.56M, compared to $58.67M in the previous year. However, the gross profit margin slightly decreased, indicating rising costs. The net profit margin for TTM is 10.87%, which is slightly lower than the previous year's 12.53%, showing a decline in profitability. The EBIT and EBITDA margins are stable, reflecting decent operational efficiency.

Balance Sheet

The company's balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 1.67, which is relatively high but manageable. Stockholders' equity represents 10.23% of total assets, showing a modest equity buffer. Return on equity for TTM is 5.11%, reflecting satisfactory returns for shareholders, although there's room for improvement.

Cash Flow

Cash flow analysis reveals a positive free cash flow trend with a TTM free cash flow of $5.14M, a healthy increase from the previous year. The operating cash flow to net income ratio of 0.83 suggests efficient cash generation from operations. The company's ability to generate free cash flow is strong, supporting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.56M	58.67M	50.07M	39.45M	39.77M	46.98M
Gross Profit	39.67M	38.93M	40.69M	38.77M	35.92M	39.80M
EBITDA	12.72M	13.54M	15.60M	17.71M	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	53.23M	68.00M	26.09M	73.86M	120.75M
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: Positive
• Last Price: 15.50
• 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 15.5 is above the 20-day moving average (MA) of 15.35, above the 50-day MA of 15.36, and above the 200-day MA of 15.09, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 74.80 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
PROV	69 Neutral	$102.60M	16.67	4.84%	3.59%	2.53%	-12.02%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
PBHC	65 Neutral	$91.48M	160.43	2.33%	2.70%	8.19%	―
BSBK	55 Neutral	$121.63M	―	-0.25%	―	-12.23%	83.58%
WMPN	53 Neutral		―		―	2.25%	-261.40%
FGBI	46 Neutral	$129.88M	65.81	-4.06%	1.30%	9.81%	-220.92%
FNWB	44 Neutral	$67.81M	―	-6.59%	3.89%	10.23%	-110.17%

Provident Financial Holdings Corporate Events

Provident Financial Holdings Reports Q4 2025 Results

On July 28, 2025, Provident Financial Holdings reported its fourth quarter and fiscal year 2025 results, showing a net income of $1.63 million for the June 2025 quarter, a decline of 12% from the previous quarter and 17% from the same quarter last year. The decrease in net income was mainly due to a reduction in non-interest income and an increase in non-interest expenses, despite improvements in net interest income and credit loss recoveries. The company noted an improved operating environment over the fiscal year, with stabilized deposit balances and strong credit quality, although loan prepayments interrupted loan portfolio growth. Looking forward, the company is optimistic about fiscal 2026, expecting improving fundamentals supported by stable economic conditions.

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 Announces Quarterly Dividend Payment

On July 24, 2025, Provident Financial Holdings, Inc. announced a quarterly cash dividend of $0.14 per share, payable on September 4, 2025, to shareholders of record as of August 14, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

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 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.