Provident Financial Holdings, Inc. Fundamental Analysis (NASDAQ: PROV)
Provident Financial Holdings, Inc. Fundamental Analysis (NASDAQ: PROV)
Provident Financial Holdings, Inc. (NASDAQ: PROV) shows weak financial fundamentals with a PE ratio of 18.40, profit margin of 10.27%, and ROE of 4.77%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PROV's fundamental strength across five key dimensions:
Efficiency Score
WeakPROV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPROV trades at attractive valuation levels.
Growth Score
ModeratePROV shows steady but slowing expansion.
Financial Health Score
WeakPROV carries high financial risk with limited liquidity.
Profitability Score
WeakPROV struggles to sustain strong margins.
Key Financial Metrics
Is PROV Expensive or Cheap?
P/E Ratio
PROV trades at 18.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PROV's PEG of -5.95 indicates potential undervaluation.
Price to Book
The market values Provident Financial Holdings, Inc. at 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.62 times EBITDA. This is generally considered low.
How Well Does PROV Make Money?
Net Profit Margin
For every $100 in sales, Provident Financial Holdings, Inc. keeps $10.27 as profit after all expenses.
Operating Margin
Core operations generate 15.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.77 in profit for every $100 of shareholder equity.
ROA
Provident Financial Holdings, Inc. generates $0.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Provident Financial Holdings, Inc. produces operating cash flow of $7.94M, showing steady but balanced cash generation.
Free Cash Flow
Provident Financial Holdings, Inc. generates strong free cash flow of $7.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.20 in free cash annually.
FCF Yield
PROV converts 7.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How PROV Stacks Against Its Sector Peers
| Metric | PROV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.40 | 21.06 | Better (Cheaper) |
| ROE | 4.77% | 651.00% | Weak |
| Net Margin | 10.27% | -599.00% (disorted) | Strong |
| Debt/Equity | 1.47 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.68 | 887.27 | Weak Liquidity |
| ROA | 0.50% | 6570.00% | Weak |
PROV outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Provident Financial Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical