Fact based stock research
Provident Bancorp (NasdaqCM:PVBC)

US74383L1052

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Provident Bancorp stock research in summary

investors.bankprov.comoverviewdefault.aspx

ANALYSIS: With an Obermatt Combined Rank of 11 (worse than 89% compared with investment alternatives), Provident Bancorp (Thrifts & Mortgage Finance, USA) shares have lower financial characteristics compared with similar stocks. Shares of Provident Bancorp are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives), show below-average growth (Growth Rank of 19), and are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 11, is a sell recommendation based on Provident Bancorp's financial characteristics. As the company Provident Bancorp's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 27), low growth (Obermatt Growth Rank of 19), and risky financing practices (Obermatt Safety Rank of 49), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	27
Growth Rank	19
Safety Rank	49
Combined Rank	11

Country	USA
Industry	Thrifts & Mortgage Finance
Index	Sound Pay USA, NASDAQ
Size class	X-Small

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Provident Bancorp

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	11	13	29	27
GROWTH
GROWTH	52	63	55	19
SAFETY
SAFETY	26	49	37	49
SENTIMENT
SENTIMENT	n/a	57	3	^new
360° VIEW
360° VIEW	n/a	43	17	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Provident Bancorp is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	11	13	29	27
GROWTH
GROWTH	52	63	55	19
SAFETY
SAFETY	26	49	37	49
COMBINED
COMBINED	19	25	33	11

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Provident Bancorp the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), Provident Bancorp shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Provident Bancorp. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 78, which means that the stock price is lower compared with invested capital than for 78% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 49 which means the stock price compared with what market professionals expect for future profits is higher than 51% of comparable companies, indicating a low value concerning Provident Bancorp's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 78 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on Provident Bancorp's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Provident Bancorp, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11	32	51	49
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	10	5	5	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	32	84	78
DIVIDEND YIELD
DIVIDEND YIELD	27	29	21	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	11	13	29	27

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Provident Bancorp; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Provident Bancorp shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Provident Bancorp. Sales Growth has a rank of 38, which means that currently professionals expect the company to grow less than 62% of its competitors. The same is valid for Profit Growth, with a rank of 8, and Capital Growth with 43. In addition, Stock Returns have a below market rank of 35, which means that the stock returns have recently been below 65% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	67	69	6	38
PROFIT GROWTH
PROFIT GROWTH	n/a	45	98	8
CAPITAL GROWTH
CAPITAL GROWTH	n/a	13	31	43
STOCK RETURNS
STOCK RETURNS	83	97	97	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	52	63	55	19

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Provident Bancorp.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 49 (better than 49% compared with alternatives), the company Provident Bancorp has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Provident Bancorp is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Provident Bancorp and the other two below average. Leverage is at a rank of 92 meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors.Refinancing is at a rank of 42, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 58% of its competitors. Liquidity is at a rank of 19, meaning that the company generates less profit to service its debt than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 49 (worse than 51% compared with alternatives), Provident Bancorp has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Provident Bancorp are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Provident Bancorp and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	65	72	94	92
REFINANCING
REFINANCING	6	34	43	42
LIQUIDITY
LIQUIDITY	43	41	1	19
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	26	49	37	49

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Provident Bancorp and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	73	25	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	62	1	^new
MARKET PULSE
MARKET PULSE	n/a	1	2	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	57	3	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Provident Bancorp.
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