📊 PB Key Takeaways
Is Prosperity Bancshares Inc. (PB) a Good Investment?
Despite exceptional revenue growth of 45.2% YoY and strong cash flow generation, Prosperity Bancshares exhibits critical weaknesses in profitability returns and debt servicing capacity. ROE of 1.4% and ROA of 0.3% are dangerously low for a financial institution, while the 0.5x interest coverage ratio signals inability to adequately service debt obligations from operations.
Prosperity Bancshares Inc. Key Strengths (PB)
- Strong revenue growth of 45.2% YoY demonstrates significant business expansion
- Excellent operating margin of 34% and net margin of 26.3% indicate strong cost control
- Robust free cash flow of $178.1M with 40.3% FCF margin showing cash generation capability
PB Stock Risks: Prosperity Bancshares Inc. Investment Risks
- Critically low ROE of 1.4% and ROA of 0.3% far below banking industry standards (8-12% and 0.8-1.2% respectively)
- Inadequate interest coverage ratio of 0.5x indicates inability to cover interest expenses from operating income
- Flat net income growth (0.0% YoY) despite 45% revenue growth suggests severe margin compression and underlying operational stress
Key Metrics to Watch
- Return on Equity and Return on Assets trajectory to assess profitability recovery
- Interest coverage ratio sustainability and total debt service capacity
- Net income growth rates and operating margin trends to identify margin stabilization
Prosperity Bancshares Inc. (PB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 40.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PB Profit Margin, ROE & Profitability Analysis
PB vs Finance Sector: How Prosperity Bancshares Inc. Compares
How Prosperity Bancshares Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Prosperity Bancshares Inc. Stock Overvalued? PB Valuation Analysis 2026
Based on fundamental analysis, Prosperity Bancshares Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Prosperity Bancshares Inc. Balance Sheet: PB Debt, Cash & Liquidity
PB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Prosperity Bancshares Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $5.05 reflects profitable operations.
PB Revenue Growth, EPS Growth & YoY Performance
Prosperity Bancshares Inc. Dividends, Buybacks & Capital Allocation
PB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Prosperity Bancshares Inc. (CIK: 0001068851)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PB
What is the AI rating for PB?
Prosperity Bancshares Inc. (PB) has an AI grade of C with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PB's key strengths?
Claude: Strong revenue growth of 45.2% YoY demonstrates significant business expansion. Excellent operating margin of 34% and net margin of 26.3% indicate strong cost control.
What are the risks of investing in PB?
Claude: Critically low ROE of 1.4% and ROA of 0.3% far below banking industry standards (8-12% and 0.8-1.2% respectively). Inadequate interest coverage ratio of 0.5x indicates inability to cover interest expenses from operating income.
What is PB's revenue and growth?
Prosperity Bancshares Inc. reported revenue of $441.8M.
Does PB pay dividends?
Prosperity Bancshares Inc. pays dividends, with $60.6M distributed to shareholders in the trailing twelve months.
Where can I find PB SEC filings?
Official SEC filings for Prosperity Bancshares Inc. (CIK: 0001068851) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PB's EPS?
Prosperity Bancshares Inc. has a diluted EPS of $1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PB's fundamental grade?
Based on our AI fundamental analysis in May 2026, Prosperity Bancshares Inc. has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PB stock overvalued or undervalued?
Valuation metrics for PB: ROE of 1.4% (sector avg: 12%), net margin of 26.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is PB's AI grade for 2026?
Our dual AI analysis gives Prosperity Bancshares Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PB's free cash flow?
Prosperity Bancshares Inc.'s operating cash flow is $185.1M, with capital expenditures of $7.0M. FCF margin is 40.3%.
How does PB compare to other Finance stocks?
Vs Finance sector averages: Net margin 26.3% (avg: 25%), ROE 1.4% (avg: 12%), current ratio N/A (avg: 1.2).