PROSPERITY BANCSHARES INC (PB)
US7436061052 - Common Stock
Overall PB gets a fundamental rating of 3 out of 10. We evaluated PB against 406 industry peers in the Banks industry. Both the profitability and financial health of PB have multiple concerns. PB is not valued too expensively and it also shows a decent growth rate. PB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PB was profitable.
PB had a positive operating cash flow in the past year.
In the past 5 years PB has always been profitable.
PB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PB's Return On Assets of 1.11% is fine compared to the rest of the industry. PB outperforms 75.50% of its industry peers.
PB has a worse Return On Equity (6.04%) than 66.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.11% | ||
| ROE | 6.04% | ||
| ROIC | N/A |
ROA(3y)1.28%
ROA(5y)1.29%
ROE(3y)7.28%
ROE(5y)7.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 38.40%, PB belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
PB's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for PB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 38.4% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.01%
PM growth 5Y-2.62%
GM growth 3YN/A
GM growth 5YN/A
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
The number of shares outstanding for PB has been increased compared to 5 years ago.
PB has a worse debt/assets ratio than last year.
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.
PB has a worse Debt to FCF ratio (6.02) than 65.10% of its industry peers.
PB has a Debt/Equity ratio of 0.56. This is a neutral value indicating PB is somewhat dependend on debt financing.
The Debt to Equity ratio of PB (0.56) is worse than 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.89%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for PB have decreased by -6.18% in the last year.
PB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.
Looking at the last year, PB shows a small growth in Revenue. The Revenue has grown by 2.50% in the last year.
PB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.28% yearly.
EPS 1Y (TTM)-6.18%
EPS 3Y-7.21%
EPS 5Y-0.35%
EPS Q2Q%11.67%
Revenue 1Y (TTM)2.5%
Revenue growth 3Y-1.53%
Revenue growth 5Y8.28%
Sales Q2Q%8.81%
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 13.78% on average per year.
The Revenue is expected to grow by 7.71% on average over the next years.
EPS Next Y14.09%
EPS Next 2Y14.92%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue Next Year5.83%
Revenue Next 2Y7.66%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.91, which indicates a correct valuation of PB.
67.33% of the companies in the same industry are cheaper than PB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PB to the average of the S&P500 Index (27.73), we can say PB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.53, PB is valued correctly.
PB's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. PB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
PB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PB is cheaper than 68.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PB's earnings are expected to grow with 13.78% in the coming years.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y14.92%
EPS Next 3Y13.78%
5. Dividend
5.1 Amount
PB has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
PB's Dividend Yield is comparable with the industry average which is at 3.02.
PB's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
On average, the dividend of PB grows each year by 8.26%, which is quite nice.
PB has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
47.58% of the earnings are spent on dividend by PB. 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 2Y14.92%
EPS Next 3Y13.78%
PROSPERITY BANCSHARES INC
NYSE:PB (12/20/2024, 8:04:00 PM)
After market: 74.95 0 (0%)74.95
+0.84 (+1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.99%
Inst Owner Change1.23%
Ins Owners3.8%
Ins Owner Change-0.18%
Market Cap7.14B
Analysts82.61
Price Target85.75 (14.41%)
Short Float %2.01%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Dividend Growth(5Y)8.26%
DP47.58%
Div Incr Years17
Div Non Decr Years17
Ex-Date
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)4.23%
PT rev (3m)6.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 12.53 | ||
| P/S | 6.16 | ||
| P/FCF | 10.42 | ||
| P/OCF | 10.11 | ||
| P/B | 0.97 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.71
EY6.28%
EPS(NY)5.98
Fwd EY7.98%
FCF(TTM)7.2
FCFY9.6%
OCF(TTM)7.42
OCFY9.9%
SpS12.16
BVpS77.28
TBVpS39.75
PEG (NY)1.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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)1.28%
ROA(5y)1.29%
ROE(3y)7.28%
ROE(5y)7.21%
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-6.01%
PM growth 5Y-2.62%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector 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-Score7
WACC9.89%
ROIC/WACCN/A
Cap/Depr(3y)108.11%
Cap/Depr(5y)97.27%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.52%
Profit Quality(3y)121.53%
Profit Quality(5y)117.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.18%
EPS 3Y-7.21%
EPS 5Y-0.35%
EPS Q2Q%11.67%
EPS Next Y14.09%
EPS Next 2Y14.92%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue 1Y (TTM)2.5%
Revenue growth 3Y-1.53%
Revenue growth 5Y8.28%
Sales Q2Q%8.81%
Revenue Next Year5.83%
Revenue Next 2Y7.66%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.15%
EBIT Next 3Y14.36%
EBIT Next 5YN/A
FCF growth 1Y26.08%
FCF growth 3Y3%
FCF growth 5Y14.95%
OCF growth 1Y21.39%
OCF growth 3Y3.54%
OCF growth 5Y15.09%