Prudential Bancorp (NasdaqGM:PBIP) - Share price, News & Analysis

Q: What is the Fair Price of PBIP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PBIP ($15.31) is trading below our estimate of [[fair value]] ($18.55)

PBIP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	6/6
Dividends	1/6

PBIP Stock Overview

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

Rewards

Trading at 17.5% below our estimate of its fair value

Earnings are forecast to grow 87.86% per year

Risk Analysis

Dividend of 1.83% is not well covered by earnings

Prudential Bancorp Competitors

Oconee Federal Financial

NasdaqCM:OFED

US$119.9m

Harleysville Financial

OTCPK:HARL

US$96.3m

BV Financial

OTCPK:BVFL

US$155.8m

Provident Financial Holdings

NasdaqGS:PROV

US$105.7m

Price History & Performance

Summary of all time highs, changes and price drops for Prudential Bancorp
Historical stock prices
Current Share Price	US$15.31
52 Week High	US$17.43
52 Week Low	US$13.25
Beta	0.084
1 Month Change	-4.37%
3 Month Change	-7.21%
1 Year Change	10.14%
3 Year Change	-16.34%
5 Year Change	-16.52%
Change since IPO	46.76%

Shareholder Returns

	PBIP	US Mortgage	US Market
7D	1.6%	4.2%	1.7%
1Y	10.1%	-37.7%	-20.4%

Return vs Industry: PBIP exceeded the US Mortgage industry which returned -37.1% over the past year.

Return vs Market: PBIP exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is PBIP's price volatile compared to industry and market?
PBIP volatility
PBIP Average Weekly Movement	3.0%
Mortgage Industry Average Movement	3.7%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PBIP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PBIP's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1886	89	Dennis Pollack	https://www.psbanker.com

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.

Prudential Bancorp Fundamentals Summary

How do Prudential Bancorp's earnings and revenue compare to its market cap?
PBIP fundamental statistics
Market Cap	US$119.05m
Earnings (TTM)	-US$448.00k
Revenue (TTM)	US$23.53m

1.0x

P/B Ratio

5.1x

P/S Ratio

Is PBIP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PBIP income statement (TTM)
Revenue	US$23.53m
Cost of Revenue	US$0
Gross Profit	US$23.53m
Other Expenses	US$23.98m
Earnings	-US$448.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.058
Gross Margin	100.00%
Net Profit Margin	-1.90%
Debt/Equity Ratio	172.1%

How did PBIP perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

-487%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PBIP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PBIP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PBIP. This is calculated by dividing PBIP's market cap by their current preferred multiple.
What is PBIP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$119.05m

PBIP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does PBIP's PB Ratio compare to its peers?

PBIP PB Ratio vs Peers

The above table shows the PB ratio for PBIP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	1.3x
OFED Oconee Federal Financial	1.5x	n/a	US$119.9m
HARL Harleysville Financial	1.2x	n/a	US$96.3m
BVFL BV Financial	1.7x	n/a	US$155.8m
PROV Provident Financial Holdings	0.8x	-6.3%	US$105.7m
PBIP Prudential Bancorp	1x	87.9%	US$119.1m

Price-To-Book vs Peers: PBIP is good value based on its Price-To-Book Ratio (1x) compared to the peer average (1.3x).

Price to Earnings Ratio vs Industry

How does PBIP's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Book vs Industry: PBIP is expensive based on its Price-To-Book Ratio (1x) compared to the US Mortgage industry average (0.9x)

Price to Book Ratio vs Fair Ratio

What is PBIP's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PBIP PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	1x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate PBIP's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PBIP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PBIP ($15.31) is trading below our estimate of fair value ($18.55)

Significantly Below Fair Value: PBIP is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

87.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBIP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: PBIP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PBIP is expected to become profitable in the next 3 years.

Revenue vs Market: PBIP's revenue (8.1% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: PBIP's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PBIP's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Prudential Bancorp performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PBIP is currently unprofitable.

Growing Profit Margin: PBIP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PBIP is unprofitable, but has reduced losses over the past 5 years at a rate of 11.8% per year.

Accelerating Growth: Unable to compare PBIP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PBIP is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (6.7%).

Return on Equity

High ROE: PBIP has a negative Return on Equity (-0.37%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: PBIP's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: PBIP has a sufficient allowance for bad loans (183%).

Low Risk Liabilities: 75% of PBIP's liabilities are made up of primarily low risk sources of funding.

Loan Level: PBIP has an appropriate level of Loans to Assets ratio (55%).

Low Risk Deposits: PBIP's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: PBIP has an appropriate level of bad loans (0.7%).

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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PBIP's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PBIP's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PBIP has been paying a dividend for less than 10 years.

Growing Dividend: PBIP's dividend payments have increased, but the company has only paid a dividend for 8 years.

Current Payout to Shareholders

Earnings Coverage: PBIP is paying a dividend but the company is unprofitable.

Future Payout to Shareholders

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

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure

CEO

Dennis Pollack (71 yo)

6.08yrs

Tenure

US$808,766

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 ($USD808.77K) is about average for companies of similar size in the US market ($USD752.76K).

Compensation vs Earnings: Dennis's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: PBIP's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: PBIP's board of directors are considered experienced (9.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30