PB

Prosperity Bancshares, Inc.

Fundamental data last updated:October 6, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. As of December 31, 2021, the company operated 273 full-service banking locations comprising 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 63 in the Dallas/Fort Worth, Texas area; 22 in the East Texas area; 29 in the Central Texas area, including Austin and San Antonio; 34 in the West Texas area, including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area doing business as LegacyTexas Bank. Prosperity Bancshares, Inc. was founded in 1983 and is based in Houston, Texas.

 


VALUATION

P/E

13.02

Market Cap ($M USD)

$6.95B

Forward P/E

8.64

PEG

0.17

PRICE TO SALES

4.10

PRICE TO BOOK

0.84

EV / EBITDA

9.58

5-Year Average P/E

Free Cash Flow Yield

7.71%

DCF Value

$98.42

Graham Number

$99.00

Price to FCF

12.98

EV to FCF

14.74

Earnings Yield

7.68%

FCF Yield

7.71%

DIVIDEND

Yield

3.42%

Annual Payout

$2.36

Payout Ratio

42.88%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.30

Next Year EPS Growth Estimate

$7.98

Next Year Revenue Growth Estimate

$2.16B

Return on Equity (ROE)

6.80%

FREE CASH FLOW

Operating Margin

39.97%

Debt-to-Equity

0.28

Piotroski F-Score

7

Altman Z-Score

0.31

Return on Invested Capital (ROIC)

1.65%

Current Ratio

0.68

Quick Ratio

0.68

Net Debt to EBITDA

1.15

Interest Coverage

1.41

Gross Profit margin

71.56%

FCF PER SHARE

$5.37

REVENUE PER SHARE

$16.98

Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing Prosperity Bancshares, Inc. Based on the data at the time of this analysis, the stock traded below its DCF Value and Graham Number, suggesting a potential mispricing. The Forward P/E of 8.68 and an Earnings Yield of 7.65% indicate a compelling valuation, especially for a bank with a solid operating margin of 39.97%. However, the Altman Z-score of 0.19 raises red flags about financial distress, hinting at underlying risks that investors should not ignore.

AI Exposure / Tech Reliance

In the rapidly evolving landscape of financial services, Prosperity Bancshares is positioned within the regional banking sector, which is traditionally slower to adopt AI and tech innovations. However, this conservative approach might shield it from the volatility associated with rapid tech shifts. The bank's focus remains on traditional banking services, which could limit its exposure to disruptive technologies.

The Bull Case

For value or GARP investors, Prosperity Bancshares offers an attractive proposition. The company boasts a Piotroski F-Score of 6, indicating decent financial health, and a robust operating margin of 39.97%, which speaks to its pricing power. With a Free Cash Flow Yield of 7.53%, the bank demonstrates efficient capital management, while its ROIC of 1.64% suggests room for improvement but also potential for growth. These metrics collectively paint a picture of a bank that is managing its resources effectively, making it a candidate for those seeking undervalued opportunities.

The Bear Case

Despite some strengths, Prosperity Bancshares faces significant structural risks. The Altman Z-score of 0.19 is alarmingly low, signaling potential financial distress. Additionally, the Price/Book ratio of 0.84 suggests the market is skeptical about the bank's asset quality. The stock's proximity to its 52-week high, with only an 11.46% distance, indicates it might be technically overextended. These factors, combined with a modest ROIC, suggest caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$73.00

Institutional Ownership %

1-Year Beta

0.67

Insider Buying % (6 Mo)

Distance to 52-Week High

11.95%

Distance to 52-Week Low

11.44%

EARNINGS SURPRISE %

6.38%

50-DAY SMA

$68.24

200-DAY SMA

$68.54

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.