PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis
NYSE:PB - US7436061052 - Common Stock
68.03 USD
-0.77 (-1.12%)
68.03 USD
0 (0%)
Taking everything into account, PB scores 4 out of 10 in our fundamental rating. PB was compared to 395 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.
Each year in the past 5 years PB has been profitable.
PB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PB has a Return On Assets of 1.36%. This is amongst the best in the industry. PB outperforms 86.33% of its industry peers.
The Return On Equity of PB (6.88%) is worse than 64.05% 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
PB has a better Profit Margin (42.58%) than 97.47% of its industry peers.
PB's Profit Margin has been stable 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) | 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.
PB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PB is 9.56, which is on the high side as it means it would take PB, 9.56 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.56, PB is doing worse than 75.44% of the companies in the same industry.
PB has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PB (0.41) is worse than 74.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 9.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.38%
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.
Measured over the past 5 years, PB shows a small growth in Earnings Per Share. The EPS has been growing by 0.28% on average per year.
PB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
The Revenue has been growing slightly by 7.77% on average over the past years.
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
PB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.78% yearly.
PB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.37% yearly.
EPS Next Y16.19%
EPS Next 2Y13.22%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue Next Year7.4%
Revenue Next 2Y10.91%
Revenue Next 3Y9.37%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.37, the valuation of PB can be described as correct.
PB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PB to the average of the S&P500 Index (27.06), we can say PB is valued rather cheaply.
The Price/Forward Earnings ratio is 10.49, which indicates a very decent valuation of PB.
PB's Price/Forward Earnings is on the same level as the industry average.
PB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
PB's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PB is more expensive than 69.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | N/A |
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.
PB's earnings are expected to grow with 13.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)44.33
EPS Next 2Y13.22%
EPS Next 3Y13.78%
5. Dividend
5.1 Amount
PB has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
PB's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.41, PB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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 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
PB pays out 41.92% 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.
DP41.92%
EPS Next 2Y13.22%
EPS Next 3Y13.78%
68.03
-0.77 (-1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners84.46%
Inst Owner Change3.01%
Ins Owners3.83%
Ins Owner Change-9.96%
Market Cap6.46B
Analysts80.91
Price Target82.93 (21.9%)
Short Float %2.88%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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)-1.68%
PT rev (3m)-0.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.49 | ||
| P/S | 5.26 | ||
| P/FCF | 20.05 | ||
| P/OCF | 18.72 | ||
| P/B | 0.85 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.5
EY8.08%
EPS(NY)6.49
Fwd EY9.54%
FCF(TTM)3.39
FCFY4.99%
OCF(TTM)3.63
OCFY5.34%
SpS12.92
BVpS80
TBVpS42.5
PEG (NY)0.76
PEG (5Y)44.33
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
WACC10.38%
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 Y16.19%
EPS Next 2Y13.22%
EPS Next 3Y13.78%
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%