NasdaqCM:PVBC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Provident Bancorp, Inc. operates as a holding company for The Provident Bank that provides various financial services to individuals and small businesses in the United States.


Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PVBC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

PVBC

5.3%

US Mortgage

2.5%

US Market


1 Year Return

-20.9%

PVBC

-9.9%

US Mortgage

8.4%

US Market

Return vs Industry: PVBC underperformed the US Mortgage industry which returned -9.9% over the past year.

Return vs Market: PVBC underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

PVBCIndustryMarket
7 Day6.7%5.3%2.5%
30 Day-7.0%5.6%5.1%
90 Day-16.1%-17.8%2.0%
1 Year-20.6%-20.9%-7.6%-9.9%10.9%8.4%
3 Year-12.0%-12.3%4.8%-2.7%30.5%21.9%
5 Yearn/a6.5%-5.1%56.9%39.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PVBC ($9.22) is trading above our estimate of fair value ($5)

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


Price To Earnings Ratio

PE vs Industry: PVBC is poor value based on its PE Ratio (16.7x) compared to the Mortgage industry average (11.1x).

PE vs Market: PVBC is poor value based on its PE Ratio (16.7x) compared to the US market (16x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PVBC is good value based on its PB Ratio (0.7x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

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

4.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PVBC's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if PVBC's earnings are forecast to grow faster than the US market

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

Revenue vs Market: PVBC's revenue (4.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: PVBC's revenue (4.9% 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 PVBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Provident Bancorp performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PVBC has high quality earnings.

Growing Profit Margin: PVBC's current net profit margins (23.2%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: PVBC's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: PVBC's earnings growth over the past year (3.1%) is below its 5-year average (21.2% per year).

Earnings vs Industry: PVBC earnings growth over the past year (3.1%) underperformed the Mortgage industry 4.5%.


Return on Equity

High ROE: PVBC's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Provident 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


Financial Institutions Analysis

Asset Level: PVBC's Assets to Equity ratio (5.4x) is low.

Allowance for Bad Loans: PVBC has a low allowance for bad loans (67%).

Low Risk Liabilities: 86% of PVBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: PVBC has an appropriate level of Loans to Assets ratio (89%).

Low Risk Deposits: PVBC's Loans to Deposits ratio (126%) is high.

Level of Bad Loans: PVBC has a high level of bad loans (2.2%).


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PVBC's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PVBC's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PVBC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PVBC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its 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?

6.6yrs

Average management tenure


CEO

Dave Mansfield (57yo)

7.33yrs

Tenure

US$784,585

Compensation

Mr. David P. Mansfield, also known as Dave, has been the Chief Executive Officer and President of Provident Bancorp, Inc. since May 2013. Mr. Mansfield served as the Chief Financial Officer of Provident Ba ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD784.59K) is below average for companies of similar size in the US market ($USD1.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Mansfield
President7.33yrsUS$784.59k1.02% $1.7m
Carol Houle
Executive VP6.58yrsUS$481.48k0.72% $1.2m
Kimberly Scholtz
Corporate Secretaryno datano datano data
Anne Lapointe
Executive VP & Chief Administrative Officer of The Provident Bank4.42yrsno datano data

6.6yrs

Average Tenure

Experienced Management: PVBC's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Mansfield
President7.33yrsUS$784.59k1.02% $1.7m
Jay Gould
Independent Director3.17yrsUS$26.25k0.50% $831.3k
Charles Withee
Director3.17yrsUS$558.47k0.84% $1.4m
Frank Cousins
Independent Director17.33yrsUS$40.63k0.11% $187.8k
Laurie Knapp
Independent Director22.33yrsUS$44.25k0.22% $364.2k
Richard Peeke
Independent Director30.33yrsUS$37.25k0.13% $224.4k
Lisa DeStefano
Independent Director4yrsUS$35.50k0.093% $155.7k
Arthur Sullivan
Independent Director4yrsUS$32.00k0.50% $830.3k
James DeLeo
Independent Director3.67yrsUS$32.00k0.061% $101.7k
Joseph Reilly
Independent Chairman of the Board1.08yrsUS$38.50k0.34% $559.1k

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: PVBC's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PVBC 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 Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Provident Bancorp, Inc.
  • Ticker: PVBC
  • Exchange: NasdaqCM
  • Founded: 1828
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$166.879m
  • Shares outstanding: 18.10m
  • Website: https://www.theprovidentbank.com

Number of Employees


Location

  • Provident Bancorp, Inc.
  • 5 Market Street
  • Amesbury
  • Massachusetts
  • 1913
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PVBCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2015

Biography

Provident Bancorp, Inc. operates as a holding company for The Provident Bank that provides various financial services to individuals and small businesses in the United States. It offers checking, 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, one- to four-family residential, and consumer loans, as well as home equity loans and lines of credit. As of December 31, 2018, it operated through its main office and seven branch offices located in Amesbury and Newburyport, Massachusetts; and Bedford, Exeter, Hampton, Portsmouth, and Seabrook, New Hampshire, as well as four loan production offices located in Boston and Dedham, Massachusetts, and Nashua and Portsmouth, New Hampshire. The company was founded in 1828 and is headquartered in Amesbury, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 08:22
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.