NYSE:PB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Prosperity Bancshares

Executive Summary

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to businesses and consumers. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Prosperity Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

PB

0.3%

US Banks

-1.4%

US Market


1 Year Return

-20.2%

PB

-28.7%

US Banks

17.8%

US Market

Return vs Industry: PB exceeded the US Banks industry which returned -28.7% over the past year.

Return vs Market: PB underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

PBIndustryMarket
7 Day5.1%0.3%-1.4%
30 Day18.3%5.8%4.7%
90 Day3.9%-0.5%8.2%
1 Year-17.5%-20.2%-26.1%-28.7%20.5%17.8%
3 Year-6.1%-13.0%-19.3%-26.0%42.2%32.7%
5 Year26.0%11.7%14.8%0.6%83.4%62.7%

Price Volatility Vs. Market

How volatile is Prosperity Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Prosperity Bancshares undervalued compared to its fair value and its price relative to the market?

25.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PB ($58.53) is trading below our estimate of fair value ($78.79)

Significantly Below Fair Value: PB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PB is poor value based on its PE Ratio (11.6x) compared to the US Banks industry average (10.1x).

PE vs Market: PB is good value based on its PE Ratio (11.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PB's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Prosperity Bancshares forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PB's earnings are forecast to decline over the next 3 years (-4.3% per year).

Earnings vs Market: PB's earnings are forecast to decline over the next 3 years (-4.3% per year).

High Growth Earnings: PB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PB's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: PB's revenue is forecast to decline over the next 3 years (-1.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PB's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Prosperity Bancshares performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PB has high quality earnings.

Growing Profit Margin: PB's current net profit margins (42.4%) are lower than last year (44.8%).


Past Earnings Growth Analysis

Earnings Trend: PB's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: PB's earnings growth over the past year (30%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: PB earnings growth over the past year (30%) exceeded the Banks industry -3.2%.


Return on Equity

High ROE: PB's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Prosperity Bancshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: PB's Assets to Equity ratio (5.5x) is low.

Allowance for Bad Loans: PB has a sufficient allowance for bad loans (453%).

Low Risk Liabilities: 97% of PB's liabilities are made up of primarily low risk sources of funding.

Loan Level: PB has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: PB's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: PB has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

What is Prosperity Bancshares's current dividend yield, its reliability and sustainability?

3.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PB's dividend (3.14%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: PB's dividend (3.14%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: PB's dividends per share have been stable in the past 10 years.

Growing Dividend: PB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), PB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PB's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

David Zalman (63 yo)

19.75yrs

Tenure

US$3,720,949

Compensation

Mr. David E. Zalman serves as the Senior Chairman of Prosperity Bancshares Inc. since November 1, 2019. He served as the Chairman of Prosperity Bancshares Inc. since 2001 until November 1, 2019 and also is ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.72M) is below average for companies of similar size in the US market ($USD7.32M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Zalman
Senior Chairman & CEO19.75yrsUS$3.72m0.87%
$ 47.1m
H. Timanus
Chairman of the Board0.92yrUS$1.99m0.51%
$ 27.7m
Kevin Hanigan
President0.92yrUS$2.87m0.19%
$ 10.2m
Asylbek Osmonov
Chief Financial Officer1.5yrsUS$809.39k0.0077%
$ 420.3k
Edward Safady
Advisory Director & Vice Chairmanno dataUS$1.98m0.13%
$ 7.3m
Charlotte Rasche
Executive VP & General Counsel8.5yrsUS$1.51m0.041%
$ 2.2m
Lori Wakefield
Senior Vice President of Prosperity Bank16.17yrsno datano data
Mike Reaves
Senior Vice President of Prosperity Bank16.17yrsno datano data
Denny Buchanan
Senior Vice President of Prosperity Bank16.17yrsno datano data
Robert Dowdell
Executive Vice President1.67yrsno data0.024%
$ 1.3m
Annette Tripp
Senior VP & Associate General Counselno datano datano data
John Davenport
Executive VP & Director of Corporate Strategy0.92yrno data0.068%
$ 3.7m

8.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: PB's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Zalman
Senior Chairman & CEO19.75yrsUS$3.72m0.87%
$ 47.1m
H. Timanus
Chairman of the Board0.92yrUS$1.99m0.51%
$ 27.7m
Kevin Hanigan
President0.92yrUS$2.87m0.19%
$ 10.2m
Edward Safady
Advisory Director & Vice Chairmanno dataUS$1.98m0.13%
$ 7.3m
Ned Holmes
Independent Director37.75yrsUS$98.57k0.41%
$ 22.4m
Robert Steelhammer
Independent Director37.75yrsUS$99.84k0.15%
$ 8.0m
James Bouligny
Independent Presiding Director7.75yrsUS$94.75k0.36%
$ 19.5m
Harrison Stafford
Independent Director20.5yrsUS$104.65k0.32%
$ 17.6m
William Luedke
Independent Director6.5yrsUS$97.70k0.017%
$ 931.2k
Leah Henderson
Independent Director13.5yrsUS$98.78k0.020%
$ 1.1m
Mark Humphrey
Chairman of Bryanno datano datano data
John Zacek
Chairman of South Texas Area - Prosperity Bank6.92yrsno datano data

7.3yrs

Average Tenure

71yo

Average Age

Experienced Board: PB's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 34.2%.


Top Shareholders

Company Information

Prosperity Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prosperity Bancshares, Inc.
  • Ticker: PB
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$5.423b
  • Shares outstanding: 92.66m
  • Website: https://www.prosperitybankusa.com

Number of Employees


Location

  • Prosperity Bancshares, Inc.
  • Prosperity Bank Plaza
  • 4295 San Felipe
  • Houston
  • Texas
  • 77027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1998
PPYDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1998

Biography

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to businesses and consumers. It accepts various deposit products, s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 23:35
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.