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PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis

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

70.02  +0.13 (+0.19%)

After market: 70.02 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to PB. PB was compared to 397 industry peers in the Banks industry. There are concerns on the financial health of PB while its profitability can be described as average. PB has a decent growth rate and is not valued too expensively. Finally PB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year PB was profitable.
In the past year PB had a positive cash flow from operations.
PB had positive earnings in each of the past 5 years.
PB had a positive operating cash flow in each of the past 5 years.
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 Return On Assets of 1.21%. This is in the better half of the industry: PB outperforms 78.34% of its industry peers.
Looking at the Return On Equity, with a value of 6.44%, PB is doing worse than 66.75% of the companies in the same industry.
Industry RankSector Rank
ROA 1.21%
ROE 6.44%
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

PB's Profit Margin of 40.21% is amongst the best of the industry. PB outperforms 95.97% of its industry peers.
In the last couple of years the Profit Margin of PB has remained more or less at the same level.
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) 40.21%
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.
The number of shares outstanding for PB has been increased compared to 1 year ago.
Compared to 5 years ago, PB has more shares outstanding
Compared to 1 year ago, PB has an improved debt to assets ratio.
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 7.58, which is on the high side as it means it would take PB, 7.58 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.58, PB is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
PB has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PB (0.46) is worse than 76.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 7.58
Altman-Z N/A
ROIC/WACCN/A
WACC10.34%
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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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 20.97% over the past year.
PB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.28% yearly.
Looking at the last year, PB shows a quite strong growth in Revenue. The Revenue has grown by 10.57% in the last year.
Measured over the past years, PB shows a small growth in Revenue. The Revenue has been growing by 7.77% on average per year.
EPS 1Y (TTM)20.97%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%16.1%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%10.67%

3.2 Future

The Earnings Per Share is expected to grow by 15.01% on average over the next years. This is quite good.
Based on estimates for the next years, PB will show a quite strong growth in Revenue. The Revenue will grow by 8.26% on average per year.
EPS Next Y18.24%
EPS Next 2Y14.85%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue Next Year9.29%
Revenue Next 2Y8.55%
Revenue Next 3Y8.26%
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.
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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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.34 indicates a correct valuation of PB.
The rest of the industry has a similar Price/Earnings ratio as PB.
PB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
PB is valuated reasonably with a Price/Forward Earnings ratio of 10.49.
PB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PB to the average of the S&P500 Index (20.74), we can say PB is valued slightly cheaper.
Industry RankSector Rank
PE 13.34
Fwd PE 10.49
PB Price Earnings VS Forward Price EarningsPB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of PB is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 14.77
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 15.01% in the coming years.
PEG (NY)0.73
PEG (5Y)47.8
EPS Next 2Y14.85%
EPS Next 3Y15.01%

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7

5. Dividend

5.1 Amount

PB has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.49, PB has a dividend in line with its industry peers.
PB's Dividend Yield is a higher than the S&P500 average which is at 2.43.
Industry RankSector Rank
Dividend Yield 3.41%

5.2 History

The dividend of PB is nicely growing with an annual growth rate of 7.74%!
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)7.74%
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 44.72% 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.
DP44.72%
EPS Next 2Y14.85%
EPS Next 3Y15.01%
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 (5/5/2025, 8:04:00 PM)

After market: 70.02 0 (0%)

70.02

+0.13 (+0.19%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners84.64%
Inst Owner Change-2.18%
Ins Owners4.19%
Ins Owner Change-0.05%
Market Cap6.67B
Analysts80
Price Target89.29 (27.52%)
Short Float %2.16%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 3.41%
Yearly Dividend2.27
Dividend Growth(5Y)7.74%
DP44.72%
Div Incr Years17
Div Non Decr Years17
Ex-Date06-13 2025-06-13 (0.58)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.74%
Min EPS beat(2)-0.86%
Max EPS beat(2)-0.63%
EPS beat(4)0
Avg EPS beat(4)-1.58%
Min EPS beat(4)-3.39%
Max EPS beat(4)-0.63%
EPS beat(8)1
Avg EPS beat(8)-5.25%
EPS beat(12)1
Avg EPS beat(12)-4.13%
EPS beat(16)2
Avg EPS beat(16)-3.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)-1.64%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-3.09%
Revenue beat(16)1
Avg Revenue beat(16)-2.83%
PT rev (1m)-2.65%
PT rev (3m)-0.52%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)1.78%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.15%
Valuation
Industry RankSector Rank
PE 13.34
Fwd PE 10.49
P/S 5.59
P/FCF 14.77
P/OCF 14.11
P/B 0.9
P/tB 1.72
EV/EBITDA N/A
EPS(TTM)5.25
EY7.5%
EPS(NY)6.67
Fwd EY9.53%
FCF(TTM)4.74
FCFY6.77%
OCF(TTM)4.96
OCFY7.09%
SpS12.52
BVpS78.09
TBVpS40.62
PEG (NY)0.73
PEG (5Y)47.8
Profitability
Industry RankSector Rank
ROA 1.21%
ROE 6.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 40.21%
GM N/A
FCFM 37.87%
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-Score8
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 7.58
Debt/EBITDA N/A
Cap/Depr 60.88%
Cap/Sales 1.77%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 94.19%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC10.34%
ROIC/WACCN/A
Cap/Depr(3y)107.01%
Cap/Depr(5y)91.12%
Cap/Sales(3y)2.85%
Cap/Sales(5y)2.42%
Profit Quality(3y)109.56%
Profit Quality(5y)112.94%
High Growth Momentum
Growth
EPS 1Y (TTM)20.97%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%16.1%
EPS Next Y18.24%
EPS Next 2Y14.85%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue 1Y (TTM)10.57%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%10.67%
Revenue Next Year9.29%
Revenue Next 2Y8.55%
Revenue Next 3Y8.26%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.49%
EBIT Next 3Y13.83%
EBIT Next 5YN/A
FCF growth 1Y-26.24%
FCF growth 3Y-12.57%
FCF growth 5Y3.27%
OCF growth 1Y-26.87%
OCF growth 3Y-12.04%
OCF growth 5Y3.24%