NYSE:PB

Stock Analysis Report

Prosperity Bancshares

Executive Summary

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential and pays a dividend.


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

-3.2%

PB

-1.0%

US Banks

0.7%

US Market


1 Year Return

1.5%

PB

9.0%

US Banks

13.7%

US Market

Return vs Industry: PB underperformed the US Banks industry which returned 9% over the past year.

Return vs Market: PB underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

PBIndustryMarket
7 Day-3.2%-1.0%0.7%
30 Day-1.5%6.4%4.7%
90 Day6.9%15.6%6.1%
1 Year3.9%1.5%12.2%9.0%16.2%13.7%
3 Year14.7%7.6%39.2%29.5%48.8%39.2%
5 Year33.1%19.5%72.6%53.5%62.5%44.5%

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?

3.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PB ($69.73) is trading below our estimate of fair value ($72.04)

Significantly Below Fair Value: PB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PB is poor value based on its PE Ratio (14.7x) compared to the Banks industry average (12.7x).

PE vs Market: PB is good value based on its PE Ratio (14.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: PB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PB is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Prosperity Bancshares forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PB's forecast earnings growth (22.3% per year) is above the savings rate (2.7%).

Earnings vs Market: PB's earnings (22.3% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PB's revenue (20.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PB's revenue (20.8% per year) is forecast to grow faster than 20% 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 (8.2%).


Next Steps

Past Performance

How has Prosperity Bancshares performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PB has high quality earnings.

Growing Profit Margin: PB's current net profit margins (44.8%) are higher than last year (42.2%).


Past Earnings Growth Analysis

Earnings Trend: PB's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: PB's earnings growth over the past year (7.9%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: PB earnings growth over the past year (7.9%) underperformed the Banks industry 27.5%.


Return on Equity

High ROE: PB's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: PB has a low level of unsold assets or inventory.

Debt Coverage by Assets: PB's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: PB's level of assets compared to its equity is low.

Allowance for Bad Loans: PB has a sufficient allowance for bad loans.

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

Loan Level: PB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PB's loans are broadly funded by customer deposits.

Level of Bad Loans: PB has an appropriate level of bad loans (0.47%)


Next Steps

Dividend

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

2.64%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Prosperity Bancshares before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: PB's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: PB's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (34.6%), 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 (35.2% payout ratio).


Next Steps

Management

What is the CEO of Prosperity Bancshares's salary, the management and board of directors tenure and is there insider trading?

15.3yrs

Average management tenure


CEO

David Zalman (62yo)

18.8yrs

Tenure

US$4,879,348

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 it ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD4.88M) is about average for companies of similar size in the US market ($USD6.73M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

15.3yrs

Average Tenure

62yo

Average Age

Experienced Management: PB's management team is seasoned and experienced (15.3 years average tenure).


Board Age and Tenure

15.7yrs

Average Tenure

64yo

Average Age

Experienced Board: PB's board of directors are seasoned and experienced ( 15.7 years average tenure).


Insider Trading

Insider Buying: PB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$497,43106 Sep 19
Robert Dowdell
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares7,600
Max PriceUS$65.45
BuyUS$643,86406 Aug 19
H. Timanus
EntityIndividual
Role
Member of the Board of Directors
Chairman of the Board
Shares10,000
Max PriceUS$64.75
BuyUS$288,25027 Dec 18
H. Timanus
EntityIndividual
Role
Member of the Board of Directors
Chairman of the Board
Shares5,000
Max PriceUS$57.65
BuyUS$295,70021 Dec 18
H. Timanus
EntityIndividual
Role
Member of the Board of Directors
Chairman of the Board
Shares5,000
Max PriceUS$59.14

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Zalman (62yo)

    Senior Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$4.88m
  • Tim Timanus (74yo)

    Chairman of the Board

    • Tenure: 18.8yrs
    • Compensation: US$2.32m
  • Cindy Swindle (64yo)

    Senior Vice President

    • Tenure: 16.5yrs
  • Lori Wakefield

    Senior Vice President of Prosperity Bank

    • Tenure: 15.3yrs
  • Mike Reaves

    Senior Vice President of Prosperity Bank

    • Tenure: 15.3yrs
  • Denny Buchanan

    Senior Vice President of Prosperity Bank

    • Tenure: 15.3yrs
  • Charlotte Rasche (54yo)

    Executive VP & General Counsel

    • Tenure: 7.6yrs
    • Compensation: US$1.51m
  • Kevin Hanigan (62yo)

    President

    • Tenure: 0yrs
  • Bob Dowdell (62yo)

    Executive Vice President

    • Tenure: 0.8yrs
  • Asylbek Osmonov (39yo)

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • David Zalman (62yo)

    Senior Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$4.88m
  • Tim Timanus (74yo)

    Chairman of the Board

    • Tenure: 18.8yrs
    • Compensation: US$2.32m
  • Eddie Safady (61yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$2.29m
  • Robert Steelhammer (78yo)

    Independent Director

    • Tenure: 36.8yrs
    • Compensation: US$98.22k
  • Harrison Stafford (77yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: US$100.42k
  • Will Luedke (66yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$97.17k
  • Leah Henderson (52yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$98.22k
  • Kevin Hanigan (62yo)

    President

    • Tenure: 0yrs
  • Mark Humphrey

    Chairman of Bryan

    • Tenure: 0yrs
  • John Zacek

    Chairman of South Texas Area - Prosperity Bank

    • Tenure: 6yrs

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$6.583b
  • Shares outstanding: 94.40m
  • 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 small and medium-sized businesses, and consumers. It accepts var ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:43
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.