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PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis

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

69.16  -0.61 (-0.87%)

After market: 69.16 0 (0%)

Fundamental Rating

4

Overall PB gets a fundamental rating of 4 out of 10. We evaluated PB against 396 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 decent growth rate and is not valued too expensively. PB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

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.
In the past 5 years PB has always been profitable.
Each year in the past 5 years PB had a positive operating cash flow.
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

PB's Return On Assets of 1.29% is amongst the best of the industry. PB outperforms 83.08% of its industry peers.
PB has a worse Return On Equity (6.64%) than 64.39% of its industry peers.
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 Profit Margin of 40.85%. This is amongst the best in the industry. PB outperforms 96.46% 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 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.
Compared to 1 year ago, PB has more shares outstanding
PB has more shares outstanding than it did 5 years ago.
PB has a better debt/assets ratio than last year.
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

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.
With a Debt to FCF ratio value of 6.59, PB is not doing good in the industry: 74.24% of the companies in the same industry are doing better.
PB has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
PB has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: PB underperforms 74.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 6.59
Altman-Z N/A
ROIC/WACCN/A
WACC10.4%
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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5

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.
Looking at the last year, PB shows a quite strong growth in Revenue. The Revenue has grown by 10.57% in the last 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)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

The Earnings Per Share is expected to grow by 14.93% on average over the next years. This is quite good.
PB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y17.74%
EPS Next 2Y14.3%
EPS Next 3Y14.93%
EPS Next 5YN/A
Revenue Next Year8.3%
Revenue Next 2Y7.9%
Revenue Next 3Y7.95%
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

With a Price/Earnings ratio of 13.17, PB is valued correctly.
Based on the Price/Earnings ratio, PB is valued a bit more expensive than 60.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of PB to the average of the S&P500 Index (26.43), we can say PB is valued rather cheaply.
A Price/Forward Earnings ratio of 10.46 indicates a reasonable valuation of PB.
Based on the Price/Forward Earnings ratio, PB is valued a bit more expensive than the industry average as 60.86% of the companies are valued more cheaply.
PB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.17
Fwd PE 10.46
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

Compared to the rest of the industry, the Price/Free Cash Flow ratio of PB indicates a slightly more expensive valuation: PB is more expensive than 62.88% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.89
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

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 14.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)47.22
EPS Next 2Y14.3%
EPS Next 3Y14.93%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.31%, PB has a reasonable but not impressive dividend return.
PB's Dividend Yield is comparable with the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.38, PB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.31%

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
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

43.52% 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.
DP43.52%
EPS Next 2Y14.3%
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 (6/4/2025, 8:04:00 PM)

After market: 69.16 0 (0%)

69.16

-0.61 (-0.87%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners84.64%
Inst Owner Change0.47%
Ins Owners4.19%
Ins Owner Change0.02%
Market Cap6.59B
Analysts80
Price Target83.05 (20.08%)
Short Float %2.41%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 3.31%
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)-6.99%
PT rev (3m)-10.15%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.35%
Valuation
Industry RankSector Rank
PE 13.17
Fwd PE 10.46
P/S 5.39
P/FCF 14.89
P/OCF 14.22
P/B 0.88
P/tB 1.67
EV/EBITDA N/A
EPS(TTM)5.25
EY7.59%
EPS(NY)6.61
Fwd EY9.56%
FCF(TTM)4.64
FCFY6.71%
OCF(TTM)4.86
OCFY7.03%
SpS12.82
BVpS78.89
TBVpS41.47
PEG (NY)0.74
PEG (5Y)47.22
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
WACC10.4%
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 2Y14.3%
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 Year8.3%
Revenue Next 2Y7.9%
Revenue Next 3Y7.95%
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%