Provident Financial HoldingsPROV +0.06%58 Return-on-Tangible-Equity is 4.26% as of Mar. 2026, which is 23% below its 10-year median of 5.55. GuruFocus rates PROV with a GF Score™ of 58/100 and a GF Value™ of $16.31 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,525 Banks companies, Provident Financial Holdings ranks worse than 84.2% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Provident Financial Holdings's annualized net income for the quarter that ended in Mar. 2026 was $5.42 Mil. Provident Financial Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $127.03 Mil. Therefore, Provident Financial Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.26%.
The historical rank and industry rank for Provident Financial Holdings's Return-on-Tangible-Equity or its related term are showing as below:
PROV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.71 Med: 5.55 Max: 7.11
Current: 4.76
During the past 13 years, Provident Financial Holdings's highest Return-on-Tangible-Equity was 7.11%. The lowest was 1.71%. And the median was 5.55%.
PROV's Return-on-Tangible-Equity is ranked worse than 84.2% of 1525
companies
in the Banks industry
Industry Median: 11.21
vs PROV: 4.76
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Provident Financial Holdings Return-on-Tangible-Equity Related Terms
Provident Financial Holdings Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PROV vs RVSB, OXBC, GSBX: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Provident Financial Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Provident Financial Holdings Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Provident Financial Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Provident Financial Holdings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.26% mean?
Provident Financial Holdings (PROV) has a Return-on-Tangible-Equity of 4.26% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Provident Financial Holdings and its competitors. This is 23% below median its historical median of 5.55. Over the past decade, Provident Financial Holdings' Return-on-Tangible-Equity has ranged from 1.71 to 7.11. According to the industry distribution chart, Provident Financial Holdings ranks #1284 out of 1525 companies in the Banks industry, placing it in the top 84.2%.
Is Provident Financial Holdings' Return-on-Tangible-Equity too high?
Provident Financial Holdings' current Return-on-Tangible-Equity of 4.26% is 23% below median its 10-year median of 5.55. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 7.11. The Banks industry median Return-on-Tangible-Equity is 11.21. Provident Financial Holdings' value of 4.26% is 62% below this industry median. Based on the distribution chart, Provident Financial Holdings ranks #1284 out of 1525 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Provident Financial Holdings has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Provident Financial Holdings' Return-on-Tangible-Equity compare to RVSB and OXBC?
According to the Banks industry distribution chart, Provident Financial Holdings ranks #1284 out of 1525 companies for Return-on-Tangible-Equity. This places Provident Financial Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.21. Provident Financial Holdings' value of 4.26% is 62% below this benchmark. Historically, Provident Financial Holdings' own Return-on-Tangible-Equity has ranged from 1.71 to 7.11 over the past decade. While the company's 10-year median is 5.55 vs. the industry median of 11.21, Provident Financial Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.21, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Provident Financial Holdings's current Return-on-Tangible-Equity of 4.26% is 62% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Provident Financial Holdings and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Provident Financial Holdings's current Return-on-Tangible-Equity is 4.26%, which is 23% below median its own 10-year median of 5.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Provident Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Provident Financial Holdings (PROV) is currently considered Fairly Valued. The stock's GF Value™ is $16.31, compared to a current price of $17.20 — trading 5.5% above its estimated fair value. The current Return-on-Tangible-Equity is 4.26%, which is 23% below median its 10-year median of 5.55 and 62% below the Banks industry median of 11.21. Provident Financial Holdings' overall GF Score™ is 58/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Provident Financial Holdings (PROV), the current Return-on-Tangible-Equity is 4.26% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Provident Financial Holdings (PROV) Overvalued in 2026?
Based on GuruFocus' analysis, Provident Financial Holdings stock appears to be overvalued.
The current stock price of $17.20 is trading 5.5% above its estimated GF Value™ of $16.31.
GuruFocus considers Provident Financial Holdings to be Fairly Valued.
Key valuation signals for PROV:
Return-on-Tangible-Equity: 4.26% (23% below median its 10-year median of 5.55)
GF Value™: $16.31 vs. price of $17.20 (5.5% above fair value)
Industry Position: 62% below the Banks median (#1284 of 1525)
No single metric tells the full story. See the PROV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Provident Financial Holdings Inc is a holding company of Provident Savings Bank, F.S.B. It is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its business activities consist of community banking, investment services and trustee services for real estate transactions. The group operates in Bank segment that include attracting deposits, offering banking services and originating and purchasing single-family, multi-family, commercial real estate, construction and, to a lesser extent, other mortgage, commercial business and consumer loans. Its evenues are derived from interest earned on its loan and investment portfolios, and fees generated through its community banking activities.
58GF Score
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