Prosperity Bancshares may be undervalued with mixed growth prospects, but the 14 analysts following the company give it an rating of hold. Their target prices range from $58.0 to $76.0 per share, for an average of $68.43. At today's price of $62.02, Prosperity Bancshares is trading -9.36% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. Based in Houston, TX, the mid-cap Finance company has 3,651 full time employees. Prosperity Bancshares has provided a 3.6% dividend yield over the last 12 months.
Prosperity Bancshares has a trailing twelve month P/E ratio of 10.7, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 5.75, the company has a forward P/E ratio of 10.8.
The average compound growth rate of the company's historical and projected earnings per share is 4.9%. On this basis, the company's PEG ratio is 2.26, which suggests that it is overpriced.
On the other hand, the market is potentially undervaluing Prosperity Bancshares in terms of its book value because its P/B ratio is 0.8. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -34.7% below their Graham number, indicating that its shares have a margin of safety.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $797 | $1,122 | $1,101 | $1,114 |
| Revenue Growth | n/a | 40.86% | -1.92% | 1.18% |
| Net Margins | 41.73% | 47.12% | 47.17% | 47.09% |
| Net Margins Growth | n/a | 12.92% | 0.11% | -0.17% |
| Earnings Per Share | $4.52 | $5.68 | $5.6 | $5.77 |
| EPS Growth | n/a | 25.66% | -1.41% | 3.04% |
| Diluted Shares (MM) | 74 | 93 | 93 | 91 |
| Free Cash Flow (MM) | $384 | $560 | $676 | $464 |
| FCF Growth | n/a | 45.72% | 20.62% | -31.32% |
| Capital Expenditures (MM) | -$19 | -$22 | -$19 | -$42 |
| Net Debt / EBITDA | 1.9 | nan | nan | 1.93 |
