Prosperity Bancshares PB
United StatesFinancial Services · Banks - RegionalUSD
80.43 USD (+22.0%)
14 analysts
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Prosperity Bancshares is a regional bank headquartered in Texas offering commercial and consumer banking services, wealth management, and financial products through a network of branches in Texas and Oklahoma.
Key points
from its scores- ✓High-quality business9.7
- ✓Strong growth8.0
- ✓Attractive dividend7.9
- ✕Fragile balance sheet3.5
- ✕Poor share-price trend4.7
AI analysis
bottom line, main risk, context and newsThe combination of reasonable valuation, solid growth, and sustainable dividend makes Prosperity Bancshares an attractive option for value-oriented investors in the regional banking sector.
Prosperity Bancshares presents a solid financial profile with an operating margin of 58.04%, a net margin of 40.42%, and revenue growth of 25.90%, although its ROE of 7.07% and ROA of 1.37% are moderate. Valuation is reasonable (P/E 11.41, forward P/E 8.96) and the dividend is attractive with a payout of 41.18%.
The main risk is exposure to the Texas and Oklahoma credit cycle: a regional economic slowdown or deterioration in asset quality could pressure its ROE and net interest margin.
Context and risks
No recent relevant news and no material exposure to current macro factors. Prosperity Bancshares is a Texas regional bank with a sound balance sheet (ROE 7.07%, ROA 1.37%) and no dependence on commodities or conflict shipping routes. The rising rate environment in the U.S. is a sector-wide factor already reflected in the bank's valuation.
Is Prosperity Bancshares stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 37% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 11.4 | 13.7 | −17% |
| Price / book | 0.8 | 1.9 | −57% |
| Price / sales | 5.7 | 3.5 | +65% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.2 out of 10 (median for Financial Services: 5.2).
Average analyst target: 80.43 USD, +22.0% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.5 (sector 5.5), Growth 8.0 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 11.4
- Forward P/E
- 9.0
- Price / book
- 0.8
- Price / sales
- 5.7
- PEG
- 4.18
- Market cap
- 7.9B USD
- Enterprise value
- 9.0B USD
Profitability
- ROE
- 7.1%
- ROA
- 1.4%
- ROIC (approx.)
- 6.4%
- Gross margin
- 0.0%
- Operating margin
- 58.0%
- Net margin
- 40.4%
Solvency
- Total debt
- 2.7B USD
- Net debt
- 1.0B USD
- Cash
- 1.7B USD
Growth
- Revenue growth
- +25.9%
- Earnings growth
- +17.7%
- EPS (TTM)
- 5.78 USD
- EPS (forward)
- 7.36 USD
Dividend
- Dividend yield
- 3.6%
- Payout
- 41.2%
Risk and market
- Beta
- 0.68
- Analyst consensus
- Hold (14)
- Target price
- 80.43 USD
- 52-week range
- 61.07 – 77.20
Recent news
All PB news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Prosperity Bancshares
Is Prosperity Bancshares stock cheap or expensive?
On P/E and Price / book, it trades 37% below the Financial Services median on average. Valuation score: 6.2 out of 10 (median for Financial Services: 5.2). Average analyst target: 80.43 USD, +22.0% versus the price. This is not investment advice.
What score does Prosperity Bancshares get on MeridIAn Screener?
It scores 6.8 out of 10, rank 341 of 2,130 (better than 83% of the companies analysed). Its strongest category is Quality / Moat (9.7) and its weakest, Financial health (3.5). Analysis of 08/10/2026.
What is Prosperity Bancshares's P/E ratio?
Its P/E is 11.4: the share price equals 11.4 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 9.0.
How much is Prosperity Bancshares worth on the stock market?
Its market capitalisation is 7.9B USD.
Does Prosperity Bancshares pay a dividend?
Yes: its dividend yield is 3.64% and it pays out 41% of its earnings.
How has Prosperity Bancshares stock performed over the last year?
It has risen 8.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 61.07 and 77.20 USD. Past performance does not guarantee future results.
What do analysts think of Prosperity Bancshares?
14 analysts cover it; their average recommendation is “Hold” and their average target is 80.43 USD (+22.0% versus the price). It is an estimate, not market data.