NasdaqGS:PROV

Stock Analysis Report

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Provident Financial Holdings

Market Cap

US$126.7m

Last Updated

2021/08/01 22:13 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PROV's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

PROV

1.8%

US Mortgage

-0.5%

US Market


1 Year Return

38.2%

PROV

48.5%

US Mortgage

35.9%

US Market

Return vs Industry: PROV underperformed the US Mortgage industry which returned 48.6% over the past year.

Return vs Market: PROV exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

PROVIndustryMarket
7 Day-2.6%1.8%-0.5%
30 Day-2.9%-1.2%0.09%
90 Day3.2%-6.6%3.2%
1 Year43.6%38.2%52.9%48.5%38.0%35.9%
3 Year1.6%-7.9%24.8%15.5%62.8%52.6%
5 Year1.6%-13.1%64.4%40.8%121.2%96.9%

Long-Term 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?

16.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PROV ($16.86) is trading above our estimate of fair value ($7.59)

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 (16.7x) compared to the US Mortgage industry average (12x).

PE vs Market: PROV is good value based on its PE Ratio (16.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: PROV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PROV's PB Ratio (1x) is in line with the US Mortgage industry average.


Future Growth

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

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PROV's earnings are forecast to decline over the next 3 years (-2.7% per year).

Earnings vs Market: PROV's earnings are forecast to decline over the next 3 years (-2.7% per year).

High Growth Earnings: PROV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PROV's revenue (3.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PROV's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PROV's Return on Equity is forecast to be low in 3 years time (5.5%).


Past Performance

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

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PROV has high quality earnings.

Growing Profit Margin: PROV's current net profit margins (21%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: PROV's earnings have grown by 4.3% 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 (-1.7%) over the past year, making it difficult to compare to the Mortgage industry average (39.5%).


Return on Equity

High ROE: PROV's Return on Equity (5.9%) is considered low.


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


Financial Institutions Analysis

Asset Level: PROV's Assets to Equity ratio (9.3x) is low.

Allowance for Bad Loans: PROV has a low allowance for bad loans (86%).

Low Risk Liabilities: 89% of PROV's liabilities are made up of primarily low risk sources of funding.

Loan Level: PROV has an appropriate level of Loans to Assets ratio (72%).

Low Risk Deposits: PROV's Loans to Deposits ratio (91%) is appropriate.

Level of Bad Loans: PROV has an appropriate level of bad loans (1.1%).


Dividend

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

3.32%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 01 2021Ex Dividend DateAug 11 2021Dividend Pay DateSep 02 202122 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PROV's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: PROV's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: PROV's dividends per share have been stable 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 (55.4%), PROV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PROV's dividends in 3 years are forecast to be covered by earnings (58.3% payout ratio).


Next Steps

Management

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

24.5yrs

Average board tenure


CEO

Craig Blunden (73 yo)

25.5yrs

Tenure

US$542,682

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 ($USD542.68K) is about average for companies of similar size in the US market ($USD548.02K).

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


Board Members

Experienced Board: PROV's board of directors are seasoned and experienced ( 24.5 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.


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$126.729m
  • Shares outstanding: 7.52m
  • Website: https://www.myprovident.com

Number of Employees


Location

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

Listings


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 E...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:13
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.