NasdaqCM:PVBC

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PVBC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

PVBC

3.3%

US Mortgage

2.6%

US Market


1 Year Return

-1.1%

PVBC

-0.01%

US Mortgage

26.0%

US Market

Return vs Industry: PVBC underperformed the US Mortgage industry which returned -0% over the past year.

Return vs Market: PVBC underperformed the US Market which returned 26% over the past year.


Shareholder returns

PVBCIndustryMarket
7 Day0.9%3.3%2.6%
30 Day-0.6%5.7%5.1%
90 Day39.4%14.7%17.1%
1 Year-0.03%-1.1%2.9%-0.01%28.9%26.0%
3 Year2.3%1.2%17.2%7.8%46.3%36.6%
5 Year89.9%87.9%78.0%52.8%126.9%101.6%

Long-Term 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?

20.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PVBC ($12.02) is trading above our estimate of fair value ($6.11)

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 (20.6x) compared to the US Mortgage industry average (13.1x).

PE vs Market: PVBC is good value based on its PE Ratio (20.6x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: PVBC is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PVBC's PB Ratio (0.9x) is in line with the US Mortgage industry average.


Next Steps

Future Growth

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

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PVBC's forecast earnings growth (20% per year) is above the savings rate (2%).

Earnings vs Market: PVBC's earnings (20% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: PVBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: PVBC's revenue (8.3% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: PVBC's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PVBC's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Provident Bancorp performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PVBC has a high level of non-cash earnings.

Growing Profit Margin: PVBC's current net profit margins (21.4%) are lower than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: PVBC's earnings have grown by 19.4% per year over the past 5 years.

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

Earnings vs Industry: PVBC had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Mortgage industry average (3.2%).


Return on Equity

High ROE: PVBC's Return on Equity (4.3%) 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 (6.3x) is low.

Allowance for Bad Loans: PVBC has a low allowance for bad loans (71%).

Low Risk Liabilities: 93% 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 (90%).

Low Risk Deposits: PVBC's Loans to Deposits ratio (115%) is appropriate.

Level of Bad Loans: PVBC has an appropriate level of bad loans (1.8%).


Next Steps

Dividend

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

1.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PVBC's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: PVBC's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.85%).


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: With its low payout ratio (10.3%), PVBC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PVBC's dividends in 3 years are forecast to be thoroughly covered by earnings (13% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Dave Mansfield (58 yo)

8yrs

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 ($USD784.59K) is about average for companies of similar size in the US market ($USD996.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Mansfield
President8yrsUS$784.59k1.54%
$ 3.4m
Carol Houle
Executive VP7.25yrsUS$481.48k0.89%
$ 1.9m
Kimberly Scholtz
Corporate Secretaryno datano datano data
Anne Lapointe
Chief Administrative Officer of Provident Bank5.08yrsno datano data
Denise Gallant
Vice President of Loan Operations at The Provident Bankno datano datano data

7.3yrs

Average Tenure

Experienced Management: PVBC's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Mansfield
President8yrsUS$784.59k1.54%
$ 3.4m
Jay Gould
Independent Director3.83yrsUS$26.25k0.55%
$ 1.2m
Charles Withee
Director3.83yrsUS$558.47k0.72%
$ 1.6m
Frank Cousins
Independent Director18yrsUS$40.63k0.17%
$ 367.5k
Laurie Knapp
Independent Director23yrsUS$44.25k0.28%
$ 598.6k
Lisa DeStefano
Independent Director4.67yrsUS$35.50k0.15%
$ 325.7k
Arthur Sullivan
Independent Director4.67yrsUS$32.00k0.55%
$ 1.2m
James DeLeo
Independent Director4.33yrsUS$32.00k0.12%
$ 255.4k
Joseph Reilly
Independent Chairman of the Board1.75yrsUS$38.50k0.39%
$ 851.5k
Barbara Piette
Independent Director1.08yrsUS$158.46k0.10%
$ 217.8k

4.5yrs

Average Tenure

61yo

Average Age

Experienced Board: PVBC's board of directors are considered experienced (4.5 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 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$217.554m
  • 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, negotiabl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 00:54
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.