PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PB - US7436061052 - Common Stock
68.71 USD
-0.13 (-0.19%)
68.71 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. There are concerns on the financial health of PB while its profitability can be described as average. PB is not valued too expensively and it also shows a decent growth rate. Finally PB also has an excellent dividend rating.
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.
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 1.39%, PB belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
PB has a Return On Equity of 6.95%. This is in the lower half of the industry: PB underperforms 67.44% of its industry peers.
| 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 has a better Profit Margin (43.00%) than 97.42% of its industry peers.
PB's Profit Margin has been stable 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 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.
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.
The debt/assets ratio for PB has been reduced compared to a year ago.
2.2 Solvency
PB has a debt to FCF ratio of 10.87. This is a negative value and a sign of low solvency as PB would need 10.87 years to pay back of all of its debts.
The Debt to FCF ratio of PB (10.87) is worse 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.
The Debt to Equity ratio of PB (0.34) is worse than 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
WACC10.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.11%, which is quite good.
PB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.28% yearly.
Looking at the last year, PB shows a small growth in Revenue. The Revenue has grown by 7.03% in the last year.
The Revenue has been growing slightly by 7.77% on average over the past years.
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
Based on estimates for the next years, PB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.47% 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 10.84% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 12.25, which indicates a correct valuation of PB.
The rest of the industry has a similar Price/Earnings ratio as PB.
PB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 10.79, the valuation of PB can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as PB.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, PB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PB is valued a bit more expensive than the industry average as 76.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.44 | ||
| 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 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)43.9
EPS Next 2Y12.19%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
PB has a Yearly Dividend Yield of 3.64%.
Compared to an average industry Dividend Yield of 3.33, PB pays a bit more dividend than its industry peers.
PB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
PB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.44%
EPS Next 2Y12.19%
EPS Next 3Y12.47%
68.71
-0.13 (-0.19%)
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 Cap6.53B
Revenue(TTM)1.24B
Net Income(TTM)533.01M
Analysts79.17
Price Target79.76 (16.08%)
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 | 12.25 | ||
| Fwd PE | 10.79 | ||
| P/S | 5.26 | ||
| P/FCF | 27.44 | ||
| P/OCF | 24.6 | ||
| P/B | 0.85 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.61
EY8.16%
EPS(NY)6.37
Fwd EY9.27%
FCF(TTM)2.5
FCFY3.64%
OCF(TTM)2.79
OCFY4.07%
SpS13.05
BVpS80.69
TBVpS43.23
PEG (NY)0.8
PEG (5Y)43.9
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
WACC10.15%
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 12.25 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.