Prosperity Bancshares, Inc. (PB), Discounted Cash Flow Valuation

Prosperity Bancshares, Inc. (PB) Company Profile

US | Financial Services | Banks - Regional | NYSE
65.77 -0.15 (-0.23%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
6.26B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
1.63B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
479.39M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
95.26M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
5.06
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
14.93
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
2.99%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
620.9K
Open The opening trade price over the trading day.
66.52
Previous Close The last closing price.
65.92
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
0.84
1 day delta The range between the high and low prices over the past day.
65.61-66.98
52 weeks The range between the high and low prices over the past 52 weeks.
57.16-86.76

Total Valuation

Prosperity Bancshares, Inc. has a market cap or net worth of 6.26B. The enterprise value is 9.15B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
6.26B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
9.15B

Valuation Ratios

The trailing PE ratio is 13.06. Prosperity Bancshares, Inc.'s PEG ratio is 1.76.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
13.06
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
3.83
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
0.84
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
13.78
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
1.76

Enterprise Valuation

The stock's EV/EBITDA ratio is 19.36, with a EV/FCF ratio of 20.13.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
5.59
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
19.36
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
19.23
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
20.13

Financial Efficiency

Return on equity (ROE) is 6.57% and return on invested capital (ROIC) is 0.79%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
6.57%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
1.21%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
0.79%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.03
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 99.96%, with operating and profit margins of 9.56% and 29.32%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
99.96%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
9.56%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
37.47%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
29.32%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
28.89%

Income Statement

In the last 12 months, Prosperity Bancshares, Inc. had revenue of 1.63B and earned 479.39M in profits. Earnings per share (EPS) was 5.06.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
1.63B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
1.63B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
156.28M
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
612.66M
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
479.39M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
472.4M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
437.68M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
5.06

Financial Position

The company has a trailing 12 months (ttm) current ratio of 276.38, with a ttm Debt / Equity ratio of 0.43.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
276.38
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
276.38
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.43
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
3.92

Dividends & Yields

This stock pays an annual dividend of 2.28, which amounts to a dividend yield of 3.47%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
2.28
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
3.47%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
7.65%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
7.26%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
1.91%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
44.72%

Balance Sheet

The company has 317.42M in cash and 3.2B in debt, giving a net cash position of -2.88B.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
317.42M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
3.2B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
-2.88B
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
7.44B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
78.08
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
11.54B

Cash Flow

In the last 12 months, operating cash flow of the company was 475.55M and capital expenditures -21.14M, giving a free cash flow of 454.41M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
475.55M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-21.14M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
454.41M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
4.77

Prosperity Bancshares, Inc. News

Apr 7, 2025 - zacks.com
Prosperity Bancshares (PB) Could Be a Great Choice
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Prosperity Bancshares (PB) have what it takes?...[read more]
Apr 2, 2025 - seekingalpha.com
Prosperity Bancshares: Set For Brighter Days Ahead
Texas's Prosperity Bancshares hasn't been the best performer in recent years, but this masks a very high-quality underlying business. Prosperity not only funds itself at a cheaper rate than similar-sized banks, but it's more efficient and loses less on the loans it makes as well. The bank has a few catalysts that can help drive margin expansion, EPS growth, and, hopefully, a re-rating for the stock's P/E multiple....[read more]
Mar 27, 2025 - prnewswire.com
PROSPERITY BANCSHARES, INC.® INVITES YOU TO JOIN ITS FIRST QUARTER 2025 EARNINGS CONFERENCE CALL
HOUSTON , March 27, 2025 /PRNewswire/ -- In conjunction with Prosperity Bancshares, Inc.® (NYSE: PB) First Quarter 2025 Earnings Announcement, scheduled before the market opens on Wednesday, April 23, 2025, you are invited to listen to its conference call at 11:30 AM, Eastern Time (10:30 AM, Central Time) on that day. Participants will include members of Prosperity's executive management team....[read more]
Mar 21, 2025 - zacks.com
Are You Looking for a High-Growth Dividend Stock?
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Prosperity Bancshares (PB) have what it takes?...[read more]
Mar 5, 2025 - zacks.com
Why Prosperity Bancshares (PB) is a Great Dividend Stock Right Now
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Prosperity Bancshares (PB) have what it takes?...[read more]
Feb 17, 2025 - zacks.com
Prosperity Bancshares (PB) Could Be a Great Choice
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Prosperity Bancshares (PB) have what it takes?...[read more]
Feb 17, 2025 - zacks.com
Here's Why Prosperity Bancshares (PB) is a Strong Value Stock
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores....[read more]
Jan 31, 2025 - zacks.com
Why Prosperity Bancshares (PB) is a Top Value Stock for the Long-Term
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores....[read more]
Jan 30, 2025 - zacks.com
Prosperity Bancshares (PB) Could Be a Great Choice
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Prosperity Bancshares (PB) have what it takes?...[read more]
Jan 30, 2025 - zacks.com
Prosperity Bancshares Q4 Earnings Beat on Higher NII & Fee Income
PB's fourth-quarter 2024 results top estimates on higher NII & adjusted non-interest income alongside nil provisions. Yet, high adjusted expenses remain a woe....[read more]

Prosperity Bancshares, Inc. Details

Country US
City Houston
Address Prosperity Bank Plaza
Ticker Symbol PB
Exchange New York Stock Exchange
IPO Date Nov 12, 1998
CEO Mr. David E. Zalman
Sector Financial Services
Industry Banks - Regional
Employees 3.92K

Prosperity Bancshares, Inc. Company Description

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.

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