NasdaqGM:PBIP

Stock Analysis Report

Prudential Bancorp

Market Cap

US$156.6m

Last Updated

2020/01/18 23:55 UTC

Data Sources

Company Financials

Executive Summary

Prudential Bancorp, Inc. operates as the bank holding company for Prudential Bank that provides various banking products or services.

Rewards

PE ratio (16.2x) is below the US market (18.9x)

Earnings have grown 39.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record


Snowflake Analysis

Excellent balance sheet with acceptable track record.

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Share Price & News

How has Prudential Bancorp's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: PBIP has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return

-0.8%

PBIP

0.7%

US Mortgage

2.0%

US Market

1 Year Return

-3.0%

PBIP

16.6%

US Mortgage

23.6%

US Market

Return vs Industry: PBIP underperformed the US Mortgage industry which returned 18.8% over the past year.

Return vs Market: PBIP underperformed the US Market which returned 24.7% over the past year.

Shareholder returns

PBIPIndustryMarket
7 Day-0.8%0.7%2.0%
30 Day-2.8%-1.5%3.9%
90 Day4.1%1.7%12.0%
1 Year0.9%-3.0%19.2%16.6%26.2%23.6%
3 Year10.8%1.7%27.6%18.7%53.2%43.3%
5 Year61.9%44.5%72.2%53.6%75.7%56.3%

Price Volatility Vs. Market

How volatile is Prudential Bancorp's share price compared to the market and industry in the last 5 years?

Simply Wall St News

1 week ago | Simply Wall St

Who Has Been Selling Prudential Bancorp, Inc. (NASDAQ:PBIP) Shares?

4 weeks ago | Simply Wall St

Why Prudential Bancorp, Inc. (NASDAQ:PBIP) Is A Dividend Rockstar

1 month ago | Simply Wall St

Prudential Bancorp, Inc. (NASDAQ:PBIP) Looks Interesting, And It's About To Pay A Dividend

Valuation

Is Prudential Bancorp undervalued compared to its fair value and its price relative to the market?

15.35x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: PBIP ($17.6) is trading above our estimate of fair value ($4.46)

Significantly Below Fair Value: PBIP is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: PBIP is poor value based on its PE Ratio (16.2x) compared to the Mortgage industry average (14.2x).

PE vs Market: PBIP is good value based on its PE Ratio (16.2x) compared to the US market (18.9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PBIP's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: PBIP is good value based on its PB Ratio (1.1x) compared to the US Mortgage industry average (1.1x).

Next Steps

Future Growth

How is Prudential Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.4%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prudential Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Next Steps

Past Performance

How has Prudential Bancorp performed over the past 5 years?

39.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PBIP has high quality earnings.

Growing Profit Margin: PBIP's current net profit margins (34.3%) are higher than last year (26.8%).

Past Earnings Growth Analysis

Earnings Trend: PBIP's earnings have grown significantly by 39.3% per year over the past 5 years.

Accelerating Growth: PBIP's earnings growth over the past year (34.9%) is below its 5-year average (39.3% per year).

Earnings vs Industry: PBIP earnings growth over the past year (11.3%) underperformed the Mortgage industry 23.1%.

Return on Equity

High ROE: PBIP's Return on Equity (6.8%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Prudential Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Inventory Level: PBIP has a low level of unsold assets or inventory.

Debt Coverage by Assets: PBIP's debt is not covered by short term assets (assets are 0.2x debt).

Financial Institutions Analysis

Asset Level: PBIP's level of assets compared to its equity is low.

Allowance for Bad Loans: PBIP has a low allowance for bad loans.

Low Risk Liabilities: PBIP's liabilities are made up of primarily low risk sources of funding.

Loan Level: PBIP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PBIP's loans are broadly funded by customer deposits.

Level of Bad Loans: PBIP has an appropriate level of bad loans (1.87%)

Next Steps

Dividend

What is Prudential Bancorp's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield

Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PBIP's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PBIP's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.66%).

Stability and Growth of Payments

Stable Dividend: PBIP's dividend payments have been volatile in the past 10 years.

Growing Dividend: PBIP's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.4%), PBIP's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps

Management

What is the CEO of Prudential Bancorp's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure

CEO

Dennis Pollack (69yo)

3.7yrs

Tenure

US$711,375

Compensation

Mr. Dennis Pollack has been the Chief Executive Officer and President of Prudential Bank and Prudential Bancorp, Inc. since May 1, 2016. Mr. Pollack served as Chief Executive Officer at Presilient, LLC unt ...

CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD711.38K) is below average for companies of similar size in the US market ($USD1.07M).

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.

Management Age and Tenure

3.3yrs

Average Tenure

63yo

Average Age

Experienced Management: PBIP's management team is considered experienced (3.3 years average tenure).

Board Age and Tenure

10.5yrs

Average Tenure

82yo

Average Age

Experienced Board: PBIP's board of directors are seasoned and experienced ( 10.5 years average tenure).

Insider Trading

Insider Buying: PBIP insiders have only sold shares in the past 3 months.

Recent Insider Transactions

SellUS$46,25016 Dec 19
Anthony Migliorino
EntityIndividual
Shares2,500
Max PriceUS$18.50
SellUS$79,64316 Dec 19
Jack Rothkopf
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares4,305
Max PriceUS$18.50
BuyUS$17,24030 Jul 19
A. Fanelli
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$17.24

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Management Team

  • Dennis Pollack (69yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$711.38k

  • Kevin Gallagher (63yo)

    Senior VP & Chief Lending Officer

    • Tenure: 3yrs
    • Compensation: US$349.07k

  • Jack Rothkopf (55yo)

    Senior VP

    • Tenure: 4.5yrs
    • Compensation: US$214.01k

  • Kathleen Parmer

    Assistant Secretary of Prudential Savings Bank

    • Sharon Slater

      Senior VP

      • Gary Reilly

        Chief Credit Officer & Senior VP

        • Tenure: 3.3yrs

      • Dominique Genca

        Assistant VP & Director of Human Resources - Prudential Savings Bank

        • Robert Pollard (63yo)

          VP & Controller

          • Tenure: 2.2yrs

        Board Members

        • Dennis Pollack (69yo)

          President

          • Tenure: 3.7yrs
          • Compensation: US$711.38k

        • Joe Packer (90yo)

          Chairman Emeritus

          • Tenure: 7.1yrs
          • Compensation: US$142.79k

        • John Judge (99yo)

          Director Emeritus

          • Tenure: 11.5yrs
          • Compensation: US$79.25k

        • Francis Mulcahy (86yo)

          Independent Director

          • Tenure: 14.3yrs
          • Compensation: US$43.15k

        • A. Fanelli (82yo)

          Independent Director

          • Tenure: 14.3yrs
          • Compensation: US$63.15k

        • John Hosier (55yo)

          Independent Director

          • Tenure: 10.5yrs
          • Compensation: US$58.15k

        • Bruce Miller (58yo)

          Independent Chairman of the Board

          • Tenure: 4.1yrs
          • Compensation: US$88.15k

        Company Information

        Prudential Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources

        Key Information

        • Name: Prudential Bancorp, Inc.
        • Ticker: PBIP
        • Exchange: NasdaqGM
        • Founded: 1886
        • Industry: Thrifts and Mortgage Finance
        • Sector: Banks
        • Market Cap: US$156.649m
        • Shares outstanding: 8.90m
        • Website: https://www.psbanker.com

        Number of Employees

        Location

        • Prudential Bancorp, Inc.
        • 1834 West Oregon Avenue
        • Philadelphia
        • Pennsylvania
        • 19145
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        PBIPNasdaqGM (Nasdaq Global Market)YesNew Common StockUSUSDMar 2005

        Biography

        Prudential Bancorp, Inc. operates as the bank holding company for Prudential Bank that provides various banking products or services. The company accepts interest-bearing and non-interest-bearing checking, money market, savings, and certificates of deposit accounts. Its loan portfolio comprises single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, and commercial business loans, as well as consumer loans, such as loans secured by deposit accounts and unsecured personal loans. The company also manages a portfolio of investment and mortgage-backed securities; and provides ATM, and online and mobile banking services. As of November 20, 2019, it operated a main office in Philadelphia, Pennsylvania, as well as nine additional full-service financial centers, including seven in Philadelphia; one in Drexel Hill, Delaware County; and one in Huntingdon Valley, Montgomery County, Pennsylvania. Prudential Bancorp, Inc. was founded in 1886 and is headquartered in Philadelphia, Pennsylvania. 

        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/18 23:55
        End of Day Share Price2020/01/17 00:00
        Earnings2019/12/31
        Annual Earnings2019/09/30


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.