Fact based stock research
Prosperity Bancshares (NYSE:PB)
US7436061052
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
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Prosperity Bancshares stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Prosperity Bancshares (Regional Banks, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Prosperity Bancshares are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives), and are riskily financed (Safety Rank of 32, which means above-average debt burdens) but show above-average growth (Growth Rank of 58). ...read more
RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Prosperity Bancshares's financial characteristics. As the company Prosperity Bancshares shows low value with an Obermatt Value Rank of 40 (60% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 58% of comparable companies (Obermatt Growth Rank is 58). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 32 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Prosperity Bancshares, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Regional Banks |
| Index | D.J. US Banks, S&P MIDCAP |
| Size class | Large |
23-Jan-2025. Stock data may be delayed. Log in or sign up to get the most recent research.
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Research History: Prosperity Bancshares
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 40 |
|
37 |
|
35 |
|
40 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
4 |
|
51 |
|
58 |
|
| SAFETY | ||||||||
| SAFETY | 51 |
|
47 |
|
24 |
|
32 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
3 |
|
43 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
3 |
|
22 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Prosperity Bancshares (Regional Banks, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Prosperity Bancshares are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives), and are riskily financed (Safety Rank of 32, which means above-average debt burdens) but show above-average growth (Growth Rank of 58). ...read more
RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Prosperity Bancshares's financial characteristics. As the company Prosperity Bancshares shows low value with an Obermatt Value Rank of 40 (60% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 58% of comparable companies (Obermatt Growth Rank is 58). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 32 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Prosperity Bancshares, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 40 |
|
37 |
|
35 |
|
40 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
4 |
|
51 |
|
58 |
|
| SAFETY | ||||||||
| SAFETY | 51 |
|
47 |
|
24 |
|
32 |
|
| COMBINED | ||||||||
| COMBINED | 14 |
|
6 |
|
16 |
|
32 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 40 (worse than 60% compared with alternatives), Prosperity Bancshares shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Prosperity Bancshares. Expected dividend yields are higher than for 65% of comparable companies (a Dividend Yield rank of 65), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 75, which means that the stock price is lower compared with invested capital than for 75% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 5 which means that the stock price compared with what market professionals expect for future profits is higher than for 95% of comparable companies, indicating a low value concerning Prosperity Bancshares's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Prosperity Bancshares with a rank of 25. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 75% of comparable companies, indicating a low value concerning Prosperity Bancshares's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 40, is a hold recommendation based on Prosperity Bancshares's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Prosperity Bancshares may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 9 |
|
10 |
|
9 |
|
5 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 35 |
|
28 |
|
29 |
|
25 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 84 |
|
78 |
|
75 |
|
75 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 51 |
|
65 |
|
63 |
|
65 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 40 |
|
37 |
|
35 |
|
40 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 58 (better than 58% compared with alternatives), Prosperity Bancshares shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Prosperity Bancshares. Sales Growth has a rank of 76, which means that, currently, professionals expect the company to grow more than 76% of its competitors. Profit Growth with a rank of 77 is also above average. But Capital Growth has only a rank of 22, and Stock Returns with 43 are also below-average. Stock returns for Prosperity Bancshares have recently been below 57% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 58, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Prosperity Bancshares. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 1 |
|
31 |
|
91 |
|
76 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 1 |
|
10 |
|
34 |
|
77 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
26 |
|
59 |
|
22 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 12 |
|
15 |
|
37 |
|
43 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 1 |
|
4 |
|
51 |
|
58 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 32 (better than 32% compared with alternatives), the company Prosperity Bancshares has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Prosperity Bancshares is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Prosperity Bancshares. Liquidity is at 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 19, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 81% of its competitors. Leverage is also high at a rank of 19, which means that the company has an above-average debt-to-equity ratio. It has more debt than 81% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 32 (worse than 68% compared with alternatives), Prosperity Bancshares has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 41 |
|
72 |
|
11 |
|
19 |
|
| REFINANCING | ||||||||
| REFINANCING | 22 |
|
1 |
|
6 |
|
19 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 85 |
|
76 |
|
100 |
|
96 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 51 |
|
47 |
|
24 |
|
32 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
29 |
|
54 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
8 |
|
44 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
73 |
|
13 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
16 |
|
90 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
3 |
|
43 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Prosperity Bancshares from January 23, 2025.
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