Prosperity Bancshares, Inc. (PB) AI Stock Analysis

Prosperity Bancshares, Inc. is a bank holding company established in 1983 and headquartered in Houston, Texas, overseeing Prosperity Bank. The company provides a broad range of retail and commercial financial services across Texas and nearby communities. Its deposit products comprise demand, savings, money market, and time accounts, along with certificates of deposit. Its lending activities span 1-4 family residential mortgages, commercial real estate loans, multifamily loans, commercial and industrial financing, agricultural loans, and consumer credit for automobiles, recreational vehicles, boats, and home improvement. It also delivers construction financing, equipment acquisition loans, working capital lines, trust and wealth management, retail brokerage, mortgage banking, and treasury management.

Between FY2020 and FY2025, revenue grew at a 5-year compound annual growth rate of 7.1%. Annual revenue reached $1.74B in FY2024 with a 12.0% expansion, before leveling off at $1.74B in FY2025, down 0.2%. Operating margin stood at 39.9% in FY2025 with net income of $542.8M and diluted EPS of $5.70. For the trailing twelve months ending June 30, 2026, revenue totaled $1.39B with an operating margin of 58.0% and EPS of $5.78. In the latest quarter ending June 30, 2026, quarterly revenue grew 25.9% year-over-year, while quarterly earnings advanced 17.7%.

As of June 30, 2026, Prosperity Bancshares held $2.03B in cash and short-term investments against total debt of $2.67B, resulting in net debt of $640.9M. Total assets stood at $43.89B and shareholders' equity was $8.29B, supporting a debt-to-equity ratio of 0.32 and a current ratio of 0.65. During FY2025, the bank generated $549.5M in operating cash flow and $517.0M in free cash flow. Capital expenditures totaled $32.5M, while capital returns included $157.2M in share buybacks and $221.4M in cash dividends paid.

PB trades at a trailing P/E of 11.7x and a forward P/E of 9.3x, both below the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. The stock's price-to-sales ratio of 5.9x stands higher than the peer median of 3.2x, while its price-to-book ratio is 1.0x. Over the past year, PB shares gained 13.3%, lagging the 16.8% return of the S&P 500 (SPY). Over a 5-year span, the stock returned 9.1% compared to 83.0% for the benchmark index.

Prosperity Bancshares pays an annual forward dividend of $2.40 per share, equating to a 3.54% dividend yield based on its last close of $67.79. Dividends are distributed quarterly and carry a payout ratio of 39.8%. The company has paid dividends for 28 consecutive years and generated a 5-year annualized dividend growth rate of 4.6%. The most recent ex-dividend date was September 15, 2026.

Wall Street coverage includes 4 Strong Buy, 2 Buy, 7 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $79.50, representing 17.3% upside above the last close of $67.79. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.75B and EPS of $6.41, reflecting 12.7% expected earnings growth. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of Prosperity Bancshares, Inc. (PB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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