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PROSPERITY BANCSHARES INC (PB) Stock Fundamental Analysis

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

72.48  -1.15 (-1.56%)

After market: 72.48 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to PB. PB was compared to 396 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.


Dividend Valuation Growth Profitability Health

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4

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.
PB had a positive operating cash flow in each of the past 5 years.
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

Looking at the Return On Assets, with a value of 1.29%, PB belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
PB's Return On Equity of 6.64% is on the low side compared to the rest of the industry. PB is outperformed by 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.
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) 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.
PB has more shares outstanding than it did 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.
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

PB has a debt to FCF ratio of 6.59. This is a slightly negative value and a sign of low solvency as PB would need 6.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.59, PB is doing worse than 73.74% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that PB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, PB is not doing good in the industry: 74.49% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 6.59
Altman-Z N/A
ROIC/WACCN/A
WACC10.48%
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.
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)20.97%
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

PB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.69% yearly.
Based on estimates for the next years, PB will show a small growth in Revenue. The Revenue will grow by 7.93% on average per year.
EPS Next Y17.93%
EPS Next 2Y14.29%
EPS Next 3Y14.69%
EPS Next 5YN/A
Revenue Next Year8.38%
Revenue Next 2Y8.02%
Revenue Next 3Y7.93%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

The Price/Earnings ratio is 13.81, which indicates a correct valuation of PB.
The rest of the industry has a similar Price/Earnings ratio as PB.
When comparing the Price/Earnings ratio of PB to the average of the S&P500 Index (27.46), we can say PB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.97, the valuation of PB can be described as very reasonable.
PB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PB to the average of the S&P500 Index (36.44), we can say PB is valued rather cheaply.
Industry RankSector Rank
PE 13.81
Fwd PE 10.97
PB Price Earnings VS Forward Price EarningsPB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, PB is valued a bit more expensive than 62.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.61
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 14.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)49.48
EPS Next 2Y14.29%
EPS Next 3Y14.69%

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7

5. Dividend

5.1 Amount

PB has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
PB's Dividend Yield is comparable with the industry average which is at 3.29.
Compared to an average S&P500 Dividend Yield of 2.34, PB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.14%

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
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.
PB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.52%
EPS Next 2Y14.29%
EPS Next 3Y14.69%
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 (7/21/2025, 8:04:00 PM)

After market: 72.48 0 (0%)

72.48

-1.15 (-1.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners84.46%
Inst Owner Change-0.05%
Ins Owners4.18%
Ins Owner Change-9.95%
Market Cap6.91B
Analysts80.91
Price Target84.19 (16.16%)
Short Float %2.36%
Short Ratio3.18
Dividend
Industry RankSector Rank
Dividend Yield 3.14%
Yearly Dividend2.27
Dividend Growth(5Y)7.74%
DP43.52%
Div Incr Years17
Div Non Decr Years17
Ex-Date09-15 2025-09-15 (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)1.04%
PT rev (3m)-8.21%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0.16%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
Industry RankSector Rank
PE 13.81
Fwd PE 10.97
P/S 5.65
P/FCF 15.61
P/OCF 14.9
P/B 0.92
P/tB 1.75
EV/EBITDA N/A
EPS(TTM)5.25
EY7.24%
EPS(NY)6.61
Fwd EY9.12%
FCF(TTM)4.64
FCFY6.41%
OCF(TTM)4.86
OCFY6.71%
SpS12.82
BVpS78.89
TBVpS41.47
PEG (NY)0.77
PEG (5Y)49.48
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
WACC10.48%
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 Y17.93%
EPS Next 2Y14.29%
EPS Next 3Y14.69%
EPS Next 5YN/A
Revenue 1Y (TTM)10.57%
Revenue growth 3Y1.71%
Revenue growth 5Y7.77%
Sales Q2Q%10.67%
Revenue Next Year8.38%
Revenue Next 2Y8.02%
Revenue Next 3Y7.93%
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%