A Business at a Glance
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ITEM 1. BUSINESS Prosperity Bancshares, Inc.®, a Texas corporation (the “Company”), was formed in 1983 as a vehicle to acquire the former Allied Bank in Edna, Texas, which was chartered in 1949 as The First National Bank of Edna and is now known as Prosperity Bank. The Company is a registered financial holding company that derives substantially all of its revenues and income from the operation of its bank subsidiary, Prosperity Bank® (“Prosperity Bank®” or the “Bank”). The Bank provides a wide array of financial products and services to businesses and consumers throughout Texas and Oklahoma.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.7B | 1.8B | 1.6B | 1.2B | 1.2B |
| Net Income | 543M | 543M | 479M | 419M | 525M | 519M |
| EPS | $5.72 | $5.72 | $5.05 | $4.51 | $5.73 | $5.05 |
| Free Cash Flow | 517M | 517M | 452M | 612M | 464M | 676M |
| ROIC | 7.1% | 7.2% | 6.6% | 6.1% | 8.0% | 8.3% |
| Gross Margin | 78.1% | 78.1% | 77.1% | 68.7% | 91.2% | 95.5% |
| Debt/Equity | 0.00 | 4.05 | 4.32 | 4.45 | 4.63 | 4.89 |
| Dividends/Share | $2.33 | $2.33 | $2.26 | $2.21 | $2.11 | $1.79 |
| Operating Income | 38M | 38M | 30M | 37M | 30M | 28M |
| Operating Margin | 2.2% | 2.2% | 1.7% | 2.3% | 2.5% | 2.4% |
| ROE | 7.1% | 7.2% | 6.6% | 6.1% | 8.0% | 8.3% |
| Shares Outstanding | 95M | 95M | 95M | 93M | 92M | 103M |
PROSPERITY BANCSHARES INC passes 3 of 9 quality checks, indicating weak fundamentals.
PROSPERITY BANCSHARES INC trades at 12.1x trailing earnings, compared to its 15-year median P/E of 12.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 13.6x vs a median of 11.3x. The company's 5-year average ROIC is 7.2% with a gross margin of 82.1%. Total shareholder yield (dividends + buybacks) is 5.8%. At current prices, the estimated annualized return to fair value is -0.1%.
PROSPERITY BANCSHARES INC (PB) has a current P/E ratio of 12.1, compared to its historical median P/E of 12.7. The stock is currently considered Fair based on its historical valuation range.
PROSPERITY BANCSHARES INC (PB) has a 5-year average return on invested capital (ROIC) of 7.2%. This is below average and may indicate limited pricing power.
PROSPERITY BANCSHARES INC (PB) has a market capitalization of $6.6B. It is classified as a mid-cap stock.
Yes, PROSPERITY BANCSHARES INC (PB) pays a dividend with a trailing twelve-month yield of 3.37%. The company also returns capital through share buybacks, with a buyback yield of 2.39%.
Based on historical P/E analysis, PROSPERITY BANCSHARES INC (PB) appears fair. The current P/E of 12.1 is 5% below its historical median of 12.7. The estimated fair value CAGR (P/E method) is 1.1%.
PROSPERITY BANCSHARES INC (PB) operates in the State Commercial Banks industry, within the Financials sector.
PROSPERITY BANCSHARES INC (PB) reported annual revenue of $1.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
PROSPERITY BANCSHARES INC (PB) has a net profit margin of 31.2%. This is a strong margin indicating high profitability.
PROSPERITY BANCSHARES INC (PB) generated $517 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PROSPERITY BANCSHARES INC (PB) has a debt-to-equity ratio of 4.05. This indicates higher leverage, which may increase financial risk.
PROSPERITY BANCSHARES INC (PB) reported earnings per share (EPS) of $5.72 in its most recent fiscal year.
PROSPERITY BANCSHARES INC (PB) has a return on equity (ROE) of 7.2%. This indicates moderate shareholder returns.
PROSPERITY BANCSHARES INC (PB) has a 5-year average gross margin of 82.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for PROSPERITY BANCSHARES INC (PB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PROSPERITY BANCSHARES INC (PB) has a book value per share of $80.25, based on its most recent annual SEC filing.