Provident Bancorp (PVBC) AI Stock Analysis

• Market Cap: $222.30M
• Dividend Yield: N/A
• Average Volume (3M): 31.09K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.59
• Revenue Growth: -3.01%
• EPS Growth: 48.26%
• Country: US
• Employees: 177
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.17
• Shares Outstanding: 17,784,048
• 10 Day Avg. Volume: 37,524
• 30 Day Avg. Volume: 31,090
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 4.70
• Enterprise Value/Ebitda: 35.24
• 1Y Price Target: $13.50
• Price Target Upside: 7.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $13.50 ▲(7.74% Upside)

Provident Bancorp's stock score is primarily influenced by its stable financial position and positive technical trends. However, the stock faces challenges with declining profitability, legal issues post-merger announcement, and a valuation that suggests it may be overvalued. These factors contribute to a cautious outlook.

Provident Bancorp Business Overview & Revenue Model

Company Description

Provident Bancorp, Inc. operates as the bank holding company for The Provident Bank that provides various financial services to individuals and small businesses in the United States. It offers checking, term certificate, negotiable order of withdrawal, money market, and savings accounts, as well as certificates of deposit. The company also provides commercial real estate, multi-family residential real estate, commercial business, construction and land development, mortgage warehouse, one- to four-family residential, and consumer loans, as well as home equity loans and lines of credit; and invests in securities, and state and municipal bonds. As of December 31, 2021, it operated through its main office and six branch offices located in Amesbury and Newburyport, Massachusetts; and Bedford, Exeter, Portsmouth, and Seabrook, New Hampshire, as well as two loan production offices located in Boston, Massachusetts, and Ponte Vedra, Florida. The company was founded in 1828 and is headquartered in Amesbury, Massachusetts.

How the Company Makes Money

Provident Bancorp generates revenue primarily through the interest earned on loans and investments, which constitutes its main revenue stream. The bank provides a variety of loans, including commercial loans, real estate loans, and consumer loans, charging interest that contributes significantly to its income. Additionally, the company earns revenue from fees associated with deposit accounts, transaction services, and other banking services. Other revenue streams may include gains from the sale of investment securities. The bank also engages in strategic partnerships with local businesses and community organizations to enhance its service offerings and expand its customer base, further contributing to its earnings.

Provident Bancorp Financial Statement Overview

Summary

Provident Bancorp shows a stable financial position with strong cash flow management. While the income statement reflects challenges with declining profitability and inconsistent revenue growth, the balance sheet shows moderate leverage. The cash flow is particularly strong, indicating potential for reinvestment or debt reduction.

Income Statement

Provident Bancorp shows a mixed performance in its income statement. The TTM gross profit margin stands at 52.88%, indicating efficient cost management. However, the TTM net profit margin has decreased to 4.81% from 7.71% in the last annual report, reflecting declining profitability. Revenue growth is inconsistent, showing a decline in recent periods. Margins such as EBIT and EBITDA have also worsened over the last year, indicating operational challenges.

Balance Sheet

The balance sheet reveals a stable equity position with an equity ratio of 15.06% in TTM. The debt-to-equity ratio increased to 0.56 in TTM, signaling moderate leverage but within acceptable limits for a regional bank. Return on equity decreased to 1.91% in TTM, highlighting decreased efficiency in generating profits with shareholders' equity.

Cash Flow

Cash flow metrics present a promising outlook with a strong operating cash flow to net income ratio of 3.71 in TTM, indicating robust cash generation relative to profits. Free cash flow remains positive, with a growth rate of 40.85% from the last annual report, signaling efficient capital expenditure management and potential for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.73M	94.24M	96.20M	84.55M	69.27M	63.95M
Gross Profit	49.04M	54.27M	64.76M	23.82M	62.01M	52.42M
EBITDA	6.54M	10.46M	15.87M	-26.16M	23.12M	17.70M
Net Income	4.46M	7.27M	10.95M	-21.47M	16.14M	11.98M
Balance Sheet
Total Assets	1.55B	1.59B	1.67B	1.64B	1.73B	1.51B
Cash, Cash Equivalents and Short-Term Investments	124.98M	169.14M	248.90M	109.23M	189.95M	116.03M
Total Debt	131.36M	48.42M	108.87M	131.11M	17.89M	17.99M
Total Liabilities	1.32B	1.36B	1.45B	1.43B	1.50B	1.27B
Stockholders Equity	234.03M	231.09M	221.90M	207.54M	233.78M	235.86M
Cash Flow
Free Cash Flow	16.23M	11.53M	5.21M	21.64M	23.90M	17.27M
Operating Cash Flow	16.53M	11.90M	5.55M	21.91M	24.31M	18.18M
Investing Cash Flow	27.34M	19.38M	104.73M	-22.34M	-155.72M	-360.45M
Financing Cash Flow	-109.74M	-82.47M	29.42M	-72.05M	200.70M	366.43M

Provident Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PVBC, the sentiment is Positive. The current price of 12.53 is below the 20-day moving average (MA) of 12.78, below the 50-day MA of 12.64, and above the 200-day MA of 11.88, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PVBC.

Provident Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISTR	77 Outperform	$227.27M	10.34	8.39%	1.85%	3.25%	47.03%
FUNC	75 Outperform	$238.48M	10.04	12.42%	2.39%	11.42%	63.24%
LCNB	73 Outperform	$213.91M	10.10	5.33%	5.87%	14.84%	169.99%
CFFI	68 Neutral	$216.84M	8.86	8.76%	2.71%	11.71%	32.12%
PVBC	62 Neutral	$222.30M	19.94	4.59%	―	-3.01%	48.26%
BPRN	57 Neutral	$212.02M	33.34	2.61%	3.77%	16.39%	-72.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Provident Bancorp Corporate Events

Provident Bancorp Faces Legal Challenges Post-Merger Announcement

On June 5, 2025, NB Bancorp, Inc. and its subsidiary Needham Bank entered into a merger agreement with Provident Bancorp, Inc. and its subsidiary BankProv. This transaction involves a series of mergers, with Needham ultimately acquiring Provident and BankProv. However, following the announcement, Provident faced lawsuits and demand letters from stockholders alleging false and misleading proxy statements. Provident denies these allegations but has made additional disclosures to avoid litigation delays and costs.