NasdaqGS:PROV

Stock Analysis Report

Provident Financial Holdings

Executive Summary

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Provident Financial Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

PROV

-1.9%

US Mortgage

0.06%

US Market


1 Year Return

12.2%

PROV

5.7%

US Mortgage

19.4%

US Market

Return vs Industry: PROV exceeded the US Mortgage industry which returned 5.7% over the past year.

Return vs Market: PROV underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

PROVIndustryMarket
7 Day-0.5%-1.9%0.06%
30 Day1.7%-1.8%1.1%
90 Day1.6%-1.8%8.9%
1 Year15.2%12.2%8.2%5.7%21.9%19.4%
3 Year28.1%17.6%19.0%10.6%48.9%39.3%
5 Year65.5%43.6%60.2%42.4%71.9%53.1%

Price Volatility Vs. Market

How volatile is Provident Financial Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Provident Financial Holdings undervalued compared to its fair value and its price relative to the market?

29.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PROV ($22.1) is trading above our estimate of fair value ($6.12)

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


Price To Earnings Ratio

PE vs Industry: PROV is poor value based on its PE Ratio (29.6x) compared to the Mortgage industry average (13.7x).

PE vs Market: PROV is poor value based on its PE Ratio (29.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: PROV is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: PROV is overvalued based on its PB Ratio (1.3x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Provident Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PROV's forecast earnings growth (32.3% per year) is above the savings rate (1.7%).

Earnings vs Market: PROV's earnings (32.3% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PROV's revenue (2.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PROV's revenue (2.7% 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 PROV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Provident Financial Holdings performed over the past 5 years?

-18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PROV has a large one-off loss of $2.5M impacting its December 31 2019 financial results.

Growing Profit Margin: PROV's current net profit margins (12.4%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: PROV's earnings have declined by -18.9% per year over the past 5 years.

Accelerating Growth: PROV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PROV had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Mortgage industry average (11.1%).


Return on Equity

High ROE: PROV's Return on Equity (4.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Provident Financial Holdings'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: PROV has a low level of unsold assets or inventory.

Debt Coverage by Assets: PROV's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: PROV has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: PROV has an appropriate level of bad loans (0.36%)


Next Steps

Dividend

What is Provident Financial Holdings's current dividend yield, its reliability and sustainability?

2.53%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: PROV's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PROV's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (75%), PROV's dividend payments are 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

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

23.1yrs

Average board tenure


CEO

Craig Blunden (71yo)

24.1yrs

Tenure

US$1,345,703

Compensation

Mr. Craig G. Blunden has been Chief Executive Officer of Provident Savings Bank since 1991. Mr. Blunden has been the Chairman and Chief Executive Officer of Provident Financial Holdings, Inc. since its for ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.35M) is about average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Craig's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Craig Blunden
Chairman & CEO24.1yrsUS$1.35m2.48% $4.1m
William Thomas
Independent Director23.1yrsUS$74.45k1.21% $2.0m
Bruce Bennett
Independent Director27.1yrsUS$74.83k0.99% $1.6m
Debbi Guthrie
Independent Director26.1yrsUS$82.03k0.43% $705.9k
Roy Taylor
Lead Independent Director4.3yrsUS$82.68k0.81% $1.3m
Joseph Barr
Independent Director19.1yrsUS$81.94k0.30% $502.5k
Judy Carpenter
Independent Director7.3yrsUS$74.05k0.069% $115.0k

23.1yrs

Average Tenure

70yo

Average Age

Experienced Board: PROV's board of directors are seasoned and experienced ( 23.1 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.


Top Shareholders

Company Information

Provident Financial Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Provident Financial Holdings, Inc.
  • Ticker: PROV
  • Exchange: NasdaqGS
  • Founded: 1956
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$165.526m
  • Shares outstanding: 7.48m
  • Website: https://www.myprovident.com

Number of Employees


Location

  • Provident Financial Holdings, Inc.
  • 3756 Central Avenue
  • Riverside
  • California
  • 92506
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PROVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1996

Biography

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. The company’s deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of multi-family, commercial real estate, construction, commercial business, and consumer loans. It also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. The company operates through 12 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. Provident Financial Holdings, Inc. was founded in 1956 and is based in Riverside, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:16
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.