Provident Bancorp currently holds roughly 154.8
M in cash with 24.31
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.89, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Provident Bancorp, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Provident Bancorp along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Provident Bancorp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Provident Bancorp. Your research has to be compared to or analyzed against Provident Bancorp's peers to derive any actionable benefits. When done correctly, Provident Bancorp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Provident Bancorp.
How important is Provident Bancorp's Liquidity
Provident Bancorp
financial leverage refers to using borrowed capital as a funding source to finance Provident Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Provident Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Provident Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Provident Bancorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Provident Bancorp's total debt and its cash.
Provident Bancorp Gross Profit
Provident Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Provident Bancorp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Provident Bancorp Gross Profit growth over the last 10 years. Please check Provident Bancorp's
gross profit and other
fundamental indicators for more details.
Provident Bancorp Correlation with Peers
Investors in Provident can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Provident Bancorp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Provident Bancorp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Provident is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Provident for more details
Breaking down Provident Bancorp Further
Provident Bancorp maintains Sharpe Ratio (i.e., Efficiency) of -0.2, which implies the firm had -0.2% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Provident Bancorp exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to check Provident Bancorp
risk adjusted performance of
(0.26), and Coefficient Of Variation of
(500.11) to confirm the risk estimate we provide.
Will Provident pull back in January 2023?
Provident Bancorp current maximum drawdown builds up over 26.09.
As of the 26th of December, Provident Bancorp holds the
coefficient of variation of
(500.11), and Risk Adjusted Performance of
(0.26). Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Provident Bancorp, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We have analyzed nineteen
technical drivers for Provident Bancorp, which can be compared to its competitors. Please check
Provident Bancorp treynor ratio, as well as the
relationship between the potential upside and
expected short fall to decide if Provident Bancorp is priced some-what accurately, providing market reflects its current price of 7.39 per share. Given that Provident Bancorp has
jensen alpha of
(0.85), we recommend you to check out Provident Bancorp's recent market performance to make sure the company can sustain itself at a future point.
Our Bottom Line On Provident Bancorp
Whereas some other companies within the banks—regional industry are still a little expensive, even after the recent corrections, Provident Bancorp may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Provident valuation and our trade advice on Provident Bancorp is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Provident Bancorp.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Provident Bancorp. Please refer to our
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