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PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis

NYSE:PB - New York Stock Exchange, Inc. - US7436061052 - Common Stock - Currency: USD

80.25  +1.71 (+2.18%)

Premarket: 80.3 +0.05 (+0.06%)

Fundamental Rating

3

Overall PB gets a fundamental rating of 3 out of 10. We evaluated PB against 405 industry peers in the Banks industry. Both the profitability and financial health of PB have multiple concerns. PB has a decent growth rate and is not valued too expensively. PB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

PB had positive earnings in the past year.
PB had a positive operating cash flow in the past year.
Each year in the past 5 years PB has been profitable.
Of the past 5 years PB 4 years had a positive operating cash flow.
PB Yearly Net Income VS EBIT VS OCF VS FCFPB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

PB has a better Return On Assets (1.11%) than 75.63% of its industry peers.
PB's Return On Equity of 6.04% is on the low side compared to the rest of the industry. PB is outperformed by 67.34% of its industry peers.
Industry RankSector Rank
ROA 1.11%
ROE 6.04%
ROIC N/A
ROA(3y)1.23%
ROA(5y)1.32%
ROE(3y)6.73%
ROE(5y)7.38%
ROIC(3y)N/A
ROIC(5y)N/A
PB Yearly ROA, ROE, ROICPB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

The Profit Margin of PB (38.40%) is better than 95.23% of its industry peers.
PB's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for PB so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 38.4%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.26%
PM growth 5Y-0.17%
GM growth 3YN/A
GM growth 5YN/A
PB Yearly Profit, Operating, Gross MarginsPB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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1

2. Health

2.1 Basic Checks

PB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, PB has more shares outstanding
PB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PB has been reduced compared to a year ago.
PB Yearly Shares OutstandingPB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
PB Yearly Total Debt VS Total AssetsPB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

The Debt to FCF ratio of PB is 6.02, which is on the high side as it means it would take PB, 6.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PB (6.02) is worse than 66.83% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that PB is somewhat dependend on debt financing.
PB has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: PB underperforms 78.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 6.02
Altman-Z N/A
ROIC/WACCN/A
WACC9.9%
PB Yearly LT Debt VS Equity VS FCFPB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PB Yearly Current Assets VS Current LiabilitesPB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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5

3. Growth

3.1 Past

PB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.70%, which is quite good.
PB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.28% yearly.
PB shows a small growth in Revenue. In the last year, the Revenue has grown by 7.44%.
PB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.77% yearly.
EPS 1Y (TTM)11.7%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%34.31%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%12.45%

3.2 Future

Based on estimates for the next years, PB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.98% on average per year.
Based on estimates for the next years, PB will show a quite strong growth in Revenue. The Revenue will grow by 8.91% on average per year.
EPS Next Y17.99%
EPS Next 2Y14.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.86%
Revenue Next 2Y8.81%
Revenue Next 3Y8.91%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
PB Yearly Revenue VS EstimatesPB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
PB Yearly EPS VS EstimatesPB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.86, which indicates a correct valuation of PB.
Compared to the rest of the industry, the Price/Earnings ratio of PB indicates a slightly more expensive valuation: PB is more expensive than 66.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PB to the average of the S&P500 Index (28.47), we can say PB is valued slightly cheaper.
PB is valuated correctly with a Price/Forward Earnings ratio of 13.44.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PB indicates a slightly more expensive valuation: PB is more expensive than 61.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PB to the average of the S&P500 Index (92.74), we can say PB is valued rather cheaply.
Industry RankSector Rank
PE 15.86
Fwd PE 13.44
PB Price Earnings VS Forward Price EarningsPB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

62.81% of the companies in the same industry are more expensive than PB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.15
EV/EBITDA N/A
PB Per share dataPB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PB's earnings are expected to grow with 14.98% in the coming years.
PEG (NY)0.88
PEG (5Y)56.84
EPS Next 2Y14.98%
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

PB has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 3.15, PB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, PB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.95%

5.2 History

On average, the dividend of PB grows each year by 8.26%, which is quite nice.
PB has been paying a dividend for at least 10 years, so it has a reliable track record.
PB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.26%
Div Incr Years17
Div Non Decr Years17
PB Yearly Dividends per sharePB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

PB pays out 47.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
PB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.58%
EPS Next 2Y14.98%
EPS Next 3YN/A
PB Yearly Income VS Free CF VS DividendPB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
PB Dividend Payout.PB Dividend Payout, showing the Payout Ratio.PB Dividend Payout.PayoutRetained Earnings

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PROSPERITY BANCSHARES INC

NYSE:PB (2/4/2025, 8:04:00 PM)

Premarket: 80.3 +0.05 (+0.06%)

80.25

+1.71 (+2.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-29 2025-01-29/bmo
Earnings (Next)N/A N/A
Inst Owners82.89%
Inst Owner Change0.01%
Ins Owners4.19%
Ins Owner Change-0.25%
Market Cap7.64B
Analysts80.91
Price Target89.76 (11.85%)
Short Float %1.5%
Short Ratio2.87
Dividend
Industry RankSector Rank
Dividend Yield 2.95%
Yearly Dividend2.23
Dividend Growth(5Y)8.26%
DP47.58%
Div Incr Years17
Div Non Decr Years17
Ex-Date03-14 2025-03-14 (0.58)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.12%
Min EPS beat(2)-3.39%
Max EPS beat(2)-0.86%
EPS beat(4)0
Avg EPS beat(4)-5.21%
Min EPS beat(4)-15.14%
Max EPS beat(4)-0.86%
EPS beat(8)1
Avg EPS beat(8)-5.39%
EPS beat(12)1
Avg EPS beat(12)-4.23%
EPS beat(16)3
Avg EPS beat(16)-2.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)1.3%
Revenue beat(4)1
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-5.16%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.44%
Revenue beat(12)1
Avg Revenue beat(12)-3.13%
Revenue beat(16)2
Avg Revenue beat(16)-2.68%
PT rev (1m)0.08%
PT rev (3m)9.11%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.15%
Valuation
Industry RankSector Rank
PE 15.86
Fwd PE 13.44
P/S 6.6
P/FCF 11.15
P/OCF 10.82
P/B 1.04
P/tB 2.02
EV/EBITDA N/A
EPS(TTM)5.06
EY6.31%
EPS(NY)5.97
Fwd EY7.44%
FCF(TTM)7.2
FCFY8.97%
OCF(TTM)7.42
OCFY9.24%
SpS12.16
BVpS77.28
TBVpS39.75
PEG (NY)0.88
PEG (5Y)56.84
Profitability
Industry RankSector Rank
ROA 1.11%
ROE 6.04%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 38.4%
GM N/A
FCFM 59.19%
ROA(3y)1.23%
ROA(5y)1.32%
ROE(3y)6.73%
ROE(5y)7.38%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.26%
PM growth 5Y-0.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 6.02
Debt/EBITDA N/A
Cap/Depr 61.75%
Cap/Sales 1.81%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 154.12%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC9.9%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.7%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%34.31%
EPS Next Y17.99%
EPS Next 2Y14.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.44%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%12.45%
Revenue Next Year9.86%
Revenue Next 2Y8.81%
Revenue Next 3Y8.91%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.55%
EBIT Next 3Y13.84%
EBIT Next 5YN/A
FCF growth 1Y18.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.34%
OCF growth 3YN/A
OCF growth 5YN/A