Prosperity Bancshares, Inc. (PB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pinnacle Financial Partners, Inc.

SouthState Corp.

East West Bancorp, Inc.

Ally Financial, Inc.

First Citizens BancShares, Inc. (North Carolina)

Commerce Bancshares, Inc. (Missouri)

Prosperity Bancshares, Inc.

Cullen/Frost Bankers, Inc.

M&T Bank Corp.

Fifth Third Bancorp

First Horizon Corp. (Tennessee)

Why is Prosperity Bancshares, Inc. ?

High Profitability with a Net Interest Margin of 3.67%

Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.00%

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 1.34%
DIVIDEND PER SHARE(HY) Highest at USD 0
OPERATING PROFIT(Q) Highest at USD 170.72 MM

With ROA of 0.98%, it has a very attractive valuation with a 0.89 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.56%, its profits have risen by 20.8% ; the PEG ratio of the company is 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.56% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Prosperity Bancshares, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Prosperity Bancshares, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Prosperity Bancshares, Inc.

4.76%

1.06

24.35%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.54%

EBIT Growth (5y)

1.56%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

40.92%

Pledged Shares

Institutional Holding

85.87%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.87

EV to EBIT

10.55

EV to EBITDA

10.03

EV to Capital Employed

0.88

EV to Sales

4.43

PEG Ratio

0.96

Dividend Yield

3.33%

ROCE (Latest)

8.31%

ROE (Latest)

7.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NII(Q)

Highest at USD 321.15 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

OPERATING PROFIT(Q)

Highest at USD 192.53 MM

PRE-TAX PROFIT(Q)

Highest at USD 192.85 MM

NET PROFIT(Q)

Highest at USD 149.15 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 51.52%

NET SALES(Q)

Highest at USD 441.77 MM

-2What is not working for the Company

CREDIT DEPOSIT RATIO(HY)

Lowest at 77.49%

EPS(Q)

Lowest at USD 1.16

Here's what is working for Prosperity Bancshares, Inc.

NII

Highest at USD 321.15 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Operating Profit

Highest at USD 192.53 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 192.85 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 149.15 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 441.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 51.52%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 10.81 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Prosperity Bancshares, Inc.

EPS

Lowest at USD 1.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Credit Deposit Ratio

Lowest at 77.49%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)