PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PB - US7436061052 - Common Stock
68.84 USD
-0.55 (-0.79%)
68.84 USD
0 (0%)
PB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 387 industry peers in the Banks industry. While PB is still in line with the averages on profitability rating, there are concerns on its financial health. PB has a correct valuation and a medium growth rate. PB also has an excellent dividend rating.
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.
PB had positive earnings in each of the past 5 years.
In the past 5 years PB always reported a positive cash flow from operatings.
1.2 Ratios
PB has a Return On Assets of 1.39%. This is amongst the best in the industry. PB outperforms 86.05% of its industry peers.
With a Return On Equity value of 6.95%, PB is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 6.95% | ||
| 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
1.3 Margins
PB's Profit Margin of 43.00% is amongst the best of the industry. PB outperforms 97.42% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 43% | ||
| 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
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.
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.
2.2 Solvency
The Debt to FCF ratio of PB is 10.87, which is on the high side as it means it would take PB, 10.87 years of fcf income to pay off all of its debts.
PB has a worse Debt to FCF ratio (10.87) than 78.04% of its industry peers.
PB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
PB has a Debt to Equity ratio of 0.34. This is in the lower half of the industry: PB underperforms 70.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 10.87 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.13%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.11% 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.
The Revenue has been growing slightly by 7.03% in the past year.
PB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.77% yearly.
EPS 1Y (TTM)19.11%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%8.21%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%3.92%
3.2 Future
The Earnings Per Share is expected to grow by 12.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.84% on average over the next years. This is quite good.
EPS Next Y15.31%
EPS Next 2Y12.19%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year6.24%
Revenue Next 2Y12.78%
Revenue Next 3Y10.84%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.27, which indicates a correct valuation of PB.
Compared to the rest of the industry, the Price/Earnings ratio of PB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.15, PB is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.81, the valuation of PB can be described as very reasonable.
PB's Price/Forward Earnings ratio is in line with the industry average.
PB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
76.23% of the companies in the same industry are cheaper than PB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.49 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PB's earnings are expected to grow with 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)43.98
EPS Next 2Y12.19%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, PB has a reasonable but not impressive dividend return.
PB's Dividend Yield is a higher than the industry average which is at 3.33.
PB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
5.2 History
On average, the dividend of PB grows each year by 7.74%, 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)7.74%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
41.44% of the earnings are spent on dividend by PB. 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.
DP41.44%
EPS Next 2Y12.19%
EPS Next 3Y12.47%
68.84
-0.55 (-0.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.9%
Inst Owner Change0.57%
Ins Owners3.84%
Ins Owner Change-9.17%
Market Cap6.54B
Revenue(TTM)1.24B
Net Income(TTM)533.01M
Analysts79.17
Price Target79.76 (15.86%)
Short Float %3.12%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend2.27
Dividend Growth(5Y)7.74%
DP41.44%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.35%
Min EPS beat(2)-2.35%
Max EPS beat(2)-2.34%
EPS beat(4)0
Avg EPS beat(4)-1.79%
Min EPS beat(4)-2.35%
Max EPS beat(4)-0.63%
EPS beat(8)0
Avg EPS beat(8)-3.5%
EPS beat(12)1
Avg EPS beat(12)-4.19%
EPS beat(16)1
Avg EPS beat(16)-3.62%
Revenue beat(2)0
Avg Revenue beat(2)-4.03%
Min Revenue beat(2)-4.26%
Max Revenue beat(2)-3.79%
Revenue beat(4)0
Avg Revenue beat(4)-3.27%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)-1.64%
Revenue beat(8)1
Avg Revenue beat(8)-2.79%
Revenue beat(12)1
Avg Revenue beat(12)-3.38%
Revenue beat(16)1
Avg Revenue beat(16)-3.17%
PT rev (1m)-2.57%
PT rev (3m)-3.64%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-3.61%
Revenue NQ rev (3m)-4.71%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 10.81 | ||
| P/S | 5.27 | ||
| P/FCF | 27.49 | ||
| P/OCF | 24.65 | ||
| P/B | 0.85 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.61
EY8.15%
EPS(NY)6.37
Fwd EY9.25%
FCF(TTM)2.5
FCFY3.64%
OCF(TTM)2.79
OCFY4.06%
SpS13.05
BVpS80.69
TBVpS43.23
PEG (NY)0.8
PEG (5Y)43.98
Graham Number100.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 6.95% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 43% | ||
| GM | N/A | ||
| FCFM | 19.19% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 10.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 80.08% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 44.63% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC10.13%
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)19.11%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%8.21%
EPS Next Y15.31%
EPS Next 2Y12.19%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue 1Y (TTM)7.03%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%3.92%
Revenue Next Year6.24%
Revenue Next 2Y12.78%
Revenue Next 3Y10.84%
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-59.01%
FCF growth 3Y-12.57%
FCF growth 5Y3.27%
OCF growth 1Y-57.06%
OCF growth 3Y-12.04%
OCF growth 5Y3.24%
PROSPERITY BANCSHARES INC / PB FAQ
Can you provide the ChartMill fundamental rating for PROSPERITY BANCSHARES INC?
ChartMill assigns a fundamental rating of 4 / 10 to PB.
What is the valuation status of PROSPERITY BANCSHARES INC (PB) stock?
ChartMill assigns a valuation rating of 4 / 10 to PROSPERITY BANCSHARES INC (PB). This can be considered as Fairly Valued.
What is the profitability of PB stock?
PROSPERITY BANCSHARES INC (PB) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for PB stock?
The Price/Earnings (PE) ratio for PROSPERITY BANCSHARES INC (PB) is 12.27 and the Price/Book (PB) ratio is 0.85.
What is the earnings growth outlook for PROSPERITY BANCSHARES INC?
The Earnings per Share (EPS) of PROSPERITY BANCSHARES INC (PB) is expected to grow by 15.31% in the next year.