PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis
USA - NYSE:PB - US7436061052 - Common Stock
65.82 USD
+0.24 (+0.37%)
65.82 USD
0 (0%)
PB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 392 industry peers in the Banks industry. PB has a medium profitability rating, but doesn't score so well on its financial health evaluation. PB has a correct valuation and a medium growth rate. PB also has an excellent dividend rating.
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.
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.
1.2 Ratios
With an excellent Return On Assets value of 1.36%, PB belongs to the best of the industry, outperforming 86.22% of the companies in the same industry.
PB has a Return On Equity of 6.88%. This is in the lower half of the industry: PB underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 6.88% | ||
| 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
The Profit Margin of PB (42.58%) is better than 97.45% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 42.58% | ||
| 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.
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.
2.2 Solvency
PB has a debt to FCF ratio of 9.56. This is a negative value and a sign of low solvency as PB would need 9.56 years to pay back of all of its debts.
The Debt to FCF ratio of PB (9.56) is worse than 75.00% of its industry peers.
PB has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
PB's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. PB is outperformed by 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 9.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.56%
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 impressive 20.35% 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.
PB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
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)20.35%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%21.37%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%1.94%
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 13.32% 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 9.37% on average per year.
EPS Next Y15.8%
EPS Next 2Y13%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue Next Year7.4%
Revenue Next 2Y10.91%
Revenue Next 3Y9.37%
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 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 11.97, which indicates a very decent 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.
PB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 10.19, which indicates a very decent valuation of PB.
The rest of the industry has a similar Price/Forward Earnings ratio as PB.
PB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PB is valued a bit more expensive than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| 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 13.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)42.89
EPS Next 2Y13%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
PB has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.52, PB pays a bit more dividend than its industry peers.
PB's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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
5.3 Sustainability
41.92% 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.
DP41.92%
EPS Next 2Y13%
EPS Next 3Y13.32%
65.82
+0.24 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.9%
Inst Owner Change3%
Ins Owners3.84%
Ins Owner Change-9.99%
Market Cap6.25B
Analysts80.91
Price Target83.06 (26.19%)
Short Float %3.45%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend2.27
Dividend Growth(5Y)7.74%
DP41.92%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.1%
Min EPS beat(2)-2.34%
Max EPS beat(2)-1.85%
EPS beat(4)0
Avg EPS beat(4)-1.42%
Min EPS beat(4)-2.34%
Max EPS beat(4)-0.63%
EPS beat(8)1
Avg EPS beat(8)-3.09%
EPS beat(12)1
Avg EPS beat(12)-4.26%
EPS beat(16)1
Avg EPS beat(16)-3.56%
Revenue beat(2)0
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-4.26%
Max Revenue beat(2)-3.38%
Revenue beat(4)0
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)-1.64%
Revenue beat(8)1
Avg Revenue beat(8)-2.75%
Revenue beat(12)1
Avg Revenue beat(12)-3.36%
Revenue beat(16)1
Avg Revenue beat(16)-3%
PT rev (1m)0.34%
PT rev (3m)-0.32%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.19 | ||
| P/S | 5.09 | ||
| P/FCF | 19.39 | ||
| P/OCF | 18.12 | ||
| P/B | 0.82 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.5
EY8.36%
EPS(NY)6.46
Fwd EY9.82%
FCF(TTM)3.39
FCFY5.16%
OCF(TTM)3.63
OCFY5.52%
SpS12.92
BVpS80
TBVpS42.5
PEG (NY)0.76
PEG (5Y)42.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 6.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 42.58% | ||
| GM | N/A | ||
| FCFM | 26.26% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 9.56 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 65.7% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 61.68% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC10.56%
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)20.35%
EPS 3Y-3.44%
EPS 5Y0.28%
EPS Q2Q%21.37%
EPS Next Y15.8%
EPS Next 2Y13%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue 1Y (TTM)8.3%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%1.94%
Revenue Next Year7.4%
Revenue Next 2Y10.91%
Revenue Next 3Y9.37%
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-39.62%
FCF growth 3Y-12.57%
FCF growth 5Y3.27%
OCF growth 1Y-39.02%
OCF growth 3Y-12.04%
OCF growth 5Y3.24%