PROSPERITY BANCSHARES INC (PB)

US7436061052 - Common Stock

65.78  +0.72 (+1.11%)

After market: 65.78 0 (0%)

Fundamental Rating

3

Overall PB gets a fundamental rating of 3 out of 10. We evaluated PB against 415 industry peers in the Banks industry. Both the profitability and financial health of PB have multiple concerns. PB is quite expensive at the moment. It does show a decent growth rate. Finally PB also has an excellent dividend rating.



3

1. Profitability

1.1 Basic Checks

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

1.2 Ratios

PB has a better Return On Assets (1.09%) than 66.99% of its industry peers.
PB has a Return On Equity of 5.92%. This is in the lower half of the industry: PB underperforms 79.28% of its industry peers.
Industry RankSector Rank
ROA 1.09%
ROE 5.92%
ROIC N/A
ROA(3y)1.28%
ROA(5y)1.29%
ROE(3y)7.28%
ROE(5y)7.21%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

PB has a Profit Margin of 37.78%. This is amongst the best in the industry. PB outperforms 91.81% of its industry peers.
PB's Profit Margin has declined in the last couple of years.
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) 37.78%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.01%
PM growth 5Y-2.62%
GM growth 3YN/A
GM growth 5YN/A

0

2. Health

2.1 Basic Checks

PB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, PB has more shares outstanding
The number of shares outstanding for PB has been increased compared to 5 years ago.
Compared to 1 year ago, PB has a worse debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of PB is 6.59, which is on the high side as it means it would take PB, 6.59 years of fcf income to pay off all of its debts.
PB has a worse Debt to FCF ratio (6.59) than 72.53% of its industry peers.
PB has a Debt/Equity ratio of 0.57. This is a neutral value indicating PB is somewhat dependend on debt financing.
PB has a worse Debt to Equity ratio (0.57) than 73.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 6.59
Altman-Z N/A
ROIC/WACCN/A
WACC10.68%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

5

3. Growth

3.1 Past

The earnings per share for PB have decreased strongly by -20.94% in the last year.
PB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.
Looking at the last year, PB shows a decrease in Revenue. The Revenue has decreased by -3.53% in the last year.
The Revenue has been growing by 8.28% on average over the past years. This is quite good.
EPS 1Y (TTM)-20.94%
EPS 3Y-7.21%
EPS 5Y-0.35%
EPS growth Q2Q-32.45%
Revenue 1Y (TTM)-3.53%
Revenue growth 3Y-1.53%
Revenue growth 5Y8.28%
Revenue growth Q2Q-6.89%

3.2 Future

The Earnings Per Share is expected to grow by 16.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
EPS Next Y14.9%
EPS Next 2Y15.7%
EPS Next 3Y16.93%
EPS Next 5YN/A
Revenue Next Year4.52%
Revenue Next 2Y7.26%
Revenue Next 3Y8.38%
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.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.52, the valuation of PB can be described as correct.
Based on the Price/Earnings ratio, PB is valued more expensive than 80.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, PB is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of PB.
PB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PB is more expensive than 60.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, PB is valued a bit cheaper.
Industry RankSector Rank
PE 14.52
Fwd PE 12.64

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 10.05
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.
A more expensive valuation may be justified as PB's earnings are expected to grow with 16.93% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y15.7%
EPS Next 3Y16.93%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.53%, PB has a reasonable but not impressive dividend return.
PB's Dividend Yield is comparable with the industry average which is at 3.70.
PB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 3.53%

5.2 History

On average, the dividend of PB grows each year by 8.26%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.26%
Div Incr Years16
Div Non Decr Years16

5.3 Sustainability

49.06% 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.
DP49.06%
EPS Next 2Y15.7%
EPS Next 3Y16.93%

PROSPERITY BANCSHARES INC

NYSE:PB (3/28/2024, 8:04:00 PM)

After market: 65.78 0 (0%)

65.78

+0.72 (+1.11%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.15B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.53%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.52
Fwd PE 12.64
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.97
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.09%
ROE 5.92%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 37.78%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.94%
EPS 3Y-7.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.53%
Revenue growth 3Y-1.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y