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PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis

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

70.12  -0.66 (-0.93%)

After market: 70.12 0 (0%)

Fundamental Rating

4

PB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 395 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 correct valuation and a medium growth rate. PB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

PB had positive earnings in the past year.
In the past year PB had a positive cash flow from operations.
Each year in the past 5 years PB has been profitable.
In the past 5 years PB always reported a positive cash flow from operatings.
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

Looking at the Return On Assets, with a value of 1.29%, PB belongs to the top of the industry, outperforming 82.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.64%, PB is doing worse than 64.56% of the companies in the same industry.
Industry RankSector Rank
ROA 1.29%
ROE 6.64%
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 has a better Profit Margin (40.85%) than 96.46% of its industry peers.
In the last couple of years the Profit Margin of PB has remained more or less at the same level.
PB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 40.85%
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.
The number of shares outstanding for PB has been increased compared to 5 years ago.
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

PB has a debt to FCF ratio of 6.59. This is a slightly negative value and a sign of low solvency as PB would need 6.59 years to pay back of all of its debts.
The Debt to FCF ratio of PB (6.59) is worse than 74.43% of its industry peers.
PB has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, PB is not doing good in the industry: 74.68% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 6.59
Altman-Z N/A
ROIC/WACCN/A
WACC10.96%
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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3. Growth

3.1 Past

PB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.97%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.28% on average over the past years.
The Revenue has grown by 10.57% in the past year. This is quite good.
PB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.77% yearly.
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

Based on estimates for the next years, PB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.93% on average per year.
The Revenue is expected to grow by 7.88% on average over the next years.
EPS Next Y17.74%
EPS Next 2Y14.36%
EPS Next 3Y14.93%
EPS Next 5YN/A
Revenue Next Year8.38%
Revenue Next 2Y7.98%
Revenue Next 3Y7.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

PB is valuated correctly with a Price/Earnings ratio of 13.36.
PB's Price/Earnings is on the same level as the industry average.
PB is valuated cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.60, which indicates a very decent valuation of PB.
PB's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. PB is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.36
Fwd PE 10.6
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

60.76% of the companies in the same industry are cheaper than PB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.1
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 14.93% in the coming years.
PEG (NY)0.75
PEG (5Y)47.87
EPS Next 2Y14.36%
EPS Next 3Y14.93%

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7

5. Dividend

5.1 Amount

PB has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, PB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, PB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.28%

5.2 History

The dividend of PB is nicely growing with an annual growth rate of 7.74%!
PB has been paying a dividend for at least 10 years, so it has a reliable track record.
PB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 43.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.52%
EPS Next 2Y14.36%
EPS Next 3Y14.93%
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 (6/27/2025, 8:04:00 PM)

After market: 70.12 0 (0%)

70.12

-0.66 (-0.93%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners84.46%
Inst Owner Change0.47%
Ins Owners4.18%
Ins Owner Change-10.12%
Market Cap6.68B
Analysts80.91
Price Target83.33 (18.84%)
Short Float %2.2%
Short Ratio2.89
Dividend
Industry RankSector Rank
Dividend Yield 3.28%
Yearly Dividend2.27
Dividend Growth(5Y)7.74%
DP43.52%
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)-1.24%
Min EPS beat(2)-1.85%
Max EPS beat(2)-0.63%
EPS beat(4)0
Avg EPS beat(4)-1.68%
Min EPS beat(4)-3.39%
Max EPS beat(4)-0.63%
EPS beat(8)1
Avg EPS beat(8)-5.36%
EPS beat(12)1
Avg EPS beat(12)-4.2%
EPS beat(16)1
Avg EPS beat(16)-3.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.64%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-2.93%
Revenue beat(12)1
Avg Revenue beat(12)-3.2%
Revenue beat(16)1
Avg Revenue beat(16)-2.96%
PT rev (1m)0.34%
PT rev (3m)-9.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.27%
Valuation
Industry RankSector Rank
PE 13.36
Fwd PE 10.6
P/S 5.47
P/FCF 15.1
P/OCF 14.42
P/B 0.89
P/tB 1.69
EV/EBITDA N/A
EPS(TTM)5.25
EY7.49%
EPS(NY)6.62
Fwd EY9.44%
FCF(TTM)4.64
FCFY6.62%
OCF(TTM)4.86
OCFY6.94%
SpS12.82
BVpS78.89
TBVpS41.47
PEG (NY)0.75
PEG (5Y)47.87
Profitability
Industry RankSector Rank
ROA 1.29%
ROE 6.64%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 40.85%
GM N/A
FCFM 36.21%
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-Score7
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 6.59
Debt/EBITDA N/A
Cap/Depr 59.72%
Cap/Sales 1.72%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 88.63%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC10.96%
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 Y17.74%
EPS Next 2Y14.36%
EPS Next 3Y14.93%
EPS Next 5YN/A
Revenue 1Y (TTM)10.57%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%10.67%
Revenue Next Year8.38%
Revenue Next 2Y7.98%
Revenue Next 3Y7.88%
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 1Y5.02%
FCF growth 3Y-12.57%
FCF growth 5Y3.27%
OCF growth 1Y2.86%
OCF growth 3Y-12.04%
OCF growth 5Y3.24%