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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 1.06
PB's Cash to Debt is ranked lower than
55% of the 973 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.48 vs. PB: 1.06 )
Ranked among companies with meaningful Cash to Debt only.
PB' s 10-Year Cash to Debt Range
Min: 0.25  Med: 1.15 Max: No Debt
Current: 1.06
Equity to Asset 0.15
PB's Equity to Asset is ranked higher than
85% of the 1290 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.10 vs. PB: 0.15 )
Ranked among companies with meaningful Equity to Asset only.
PB' s 10-Year Equity to Asset Range
Min: 0.07  Med: 0.14 Max: 0.18
Current: 0.15
0.07
0.18
Interest Coverage 10.21
PB's Interest Coverage is ranked higher than
92% of the 1205 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.69 vs. PB: 10.21 )
Ranked among companies with meaningful Interest Coverage only.
PB' s 10-Year Interest Coverage Range
Min: 0.51  Med: 1.25 Max: 10.21
Current: 10.21
0.51
10.21
F-Score: 5
WACC vs ROIC
12.75%
10.15%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 56.05
PB's Operating margin (%) is ranked higher than
90% of the 1357 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 29.54 vs. PB: 56.05 )
Ranked among companies with meaningful Operating margin (%) only.
PB' s 10-Year Operating margin (%) Range
Min: 37.16  Med: 48.86 Max: 56.14
Current: 56.05
37.16
56.14
Net-margin (%) 37.38
PB's Net-margin (%) is ranked higher than
85% of the 1356 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 21.24 vs. PB: 37.38 )
Ranked among companies with meaningful Net-margin (%) only.
PB' s 10-Year Net-margin (%) Range
Min: 26.27  Med: 33.12 Max: 37.46
Current: 37.38
26.27
37.46
ROE (%) 9.69
PB's ROE (%) is ranked higher than
61% of the 1355 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 8.13 vs. PB: 9.69 )
Ranked among companies with meaningful ROE (%) only.
PB' s 10-Year ROE (%) Range
Min: 7.09  Med: 10.93 Max: 17.51
Current: 9.69
7.09
17.51
ROA (%) 1.46
PB's ROA (%) is ranked higher than
82% of the 1364 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.80 vs. PB: 1.46 )
Ranked among companies with meaningful ROA (%) only.
PB' s 10-Year ROA (%) Range
Min: 0.91  Med: 1.36 Max: 1.54
Current: 1.46
0.91
1.54
ROC (Joel Greenblatt) (%) 161.87
PB's ROC (Joel Greenblatt) (%) is ranked higher than
72% of the 1348 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 74.52 vs. PB: 161.87 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PB' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 101.68  Med: 135.12 Max: 213.11
Current: 161.87
101.68
213.11
Revenue Growth (3Y)(%) 12.30
PB's Revenue Growth (3Y)(%) is ranked higher than
83% of the 1149 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.70 vs. PB: 12.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
PB' s 10-Year Revenue Growth (3Y)(%) Range
Min: 3.5  Med: 10.80 Max: 23.6
Current: 12.3
3.5
23.6
EBITDA Growth (3Y)(%) 11.70
PB's EBITDA Growth (3Y)(%) is ranked higher than
65% of the 1011 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.10 vs. PB: 11.70 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
PB' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 1.1  Med: 11.90 Max: 32.2
Current: 11.7
1.1
32.2
EPS Growth (3Y)(%) 12.80
PB's EPS Growth (3Y)(%) is ranked higher than
59% of the 1020 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 9.20 vs. PB: 12.80 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
PB' s 10-Year EPS Growth (3Y)(%) Range
Min: 1.7  Med: 12.60 Max: 28.1
Current: 12.8
1.7
28.1
» PB's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

PB Guru Trades in Q2 2014

Third Avenue Management 532,553 sh (+63.67%)
Paul Tudor Jones Sold Out
Jim Simons Sold Out
Ken Fisher 848,678 sh (-0.17%)
David Dreman 105,927 sh (-2.51%)
James Barrow 1,364,995 sh (-3.36%)
» More
Q3 2014

PB Guru Trades in Q3 2014

Paul Tudor Jones 3,566 sh (New)
David Dreman 106,015 sh (+0.08%)
Third Avenue Management 532,553 sh (unchged)
Ken Fisher 827,783 sh (-2.46%)
James Barrow 1,325,995 sh (-2.86%)
» More
Q4 2014

PB Guru Trades in Q4 2014

Jim Simons 199,388 sh (New)
Joel Greenblatt 4,319 sh (New)
Paul Tudor Jones 23,616 sh (+562.25%)
David Dreman 106,883 sh (+0.82%)
Ken Fisher 820,608 sh (-0.87%)
James Barrow 1,285,499 sh (-3.05%)
Third Avenue Management 169,968 sh (-68.08%)
» More
Q1 2015

PB Guru Trades in Q1 2015

Joel Greenblatt 6,186 sh (+43.23%)
Jim Simons 270,188 sh (+35.51%)
David Dreman 113,593 sh (+6.28%)
Third Avenue Management 170,057 sh (+0.05%)
James Barrow 1,283,899 sh (-0.12%)
Ken Fisher 808,018 sh (-1.53%)
Paul Tudor Jones 10,161 sh (-56.97%)
» More
» Details

Insider Trades

Latest Guru Trades with PB

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Prosperity Bancshares, Inc.

Third Avenue Management Comments on Prosperity Bancshares - Jun 20, 2014

The addition of Prosperity Common expanded the Fund’s bank basket to six holdings. Houston-based Prosperity Bancshares (PB) is a bank holding company operating with a traditional community banking mindset, a far cry from the behemoth money center banks that have been exposed as too big to manage, too big to regulate and just plain too conflicted. it appears that management runs a tight ship: the company has been profitable every year since its formation, even during the massive economic downturn in Texas in the late 1980’s and during the 2008/2009 financial crisis. Historically the company has grown by making opportunistic acquisitions of banks and branches around Texas. During 2008, for example, the bank acquired $3.6 billion of deposits and certain assets of Franklin Bank from the Federal Deposit insurance Corporation, as receiver. Management’s wellmanaged, bolt-on acquisition strategy along with superb efficiency and conservative underwriting have produced an enviable track record, with adjusted book value1 compounding at mid-teens rates over the past five, ten and fifteen years. Our analysis suggests that management has an ample runway to continue doing more of the same. prosperity’s operational record, based on asset quality, capital adequacy and profitability recently drew the attention of Forbes Magazine2, which named it as “america’s Best Bank.”

At their present valuation, which approximates 15x 2014 earnings, the shares may not appear obviously undervalued. We note, however, that prosperity’s current earnings power is significantly depressed, we think more temporarily than not, by the presence of a high proportion of low-rate assets, e.g., government securities now on the books. Should interest rates and economic conditions gradually “normalize,” the company’s earning power will undoubtedly grow and the true multiple of earnings will be a much more favorable 12x-13x, per our estimates. Should business conditions remain unchanged in the periods ahead, we believe prosperity Common has limited downside. in spite of the currently depressed earnings, prosperity continues to earn a respectable 8% to 9% return on equity, a reasonable level given the relatively low-risk approach embraced by management.

From Third Avenue Management (Trades, Portfolio)'s second quarter 2014 shareholder letter.

Check out Third Avenue Management,Martin Whitman latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 13.28
PB's P/E(ttm) is ranked higher than
55% of the 1244 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 14.30 vs. PB: 13.28 )
Ranked among companies with meaningful P/E(ttm) only.
PB' s 10-Year P/E(ttm) Range
Min: 10.62  Med: 15.54 Max: 22.23
Current: 13.28
10.62
22.23
Forward P/E 13.37
PB's Forward P/E is ranked lower than
63% of the 750 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 12.38 vs. PB: 13.37 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 13.60
PB's PE(NRI) is ranked higher than
55% of the 1217 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 14.30 vs. PB: 13.60 )
Ranked among companies with meaningful PE(NRI) only.
PB' s 10-Year PE(NRI) Range
Min: 10.62  Med: 15.55 Max: 22.29
Current: 13.6
10.62
22.29
P/B 1.24
PB's P/B is ranked lower than
62% of the 1351 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.12 vs. PB: 1.24 )
Ranked among companies with meaningful P/B only.
PB' s 10-Year P/B Range
Min: 0.76  Med: 1.30 Max: 2.4
Current: 1.24
0.76
2.4
P/S 4.97
PB's P/S is ranked lower than
80% of the 1422 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.99 vs. PB: 4.97 )
Ranked among companies with meaningful P/S only.
PB' s 10-Year P/S Range
Min: 3.2  Med: 5.31 Max: 6.81
Current: 4.97
3.2
6.81
PFCF 11.90
PB's PFCF is ranked lower than
52% of the 825 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 11.60 vs. PB: 11.90 )
Ranked among companies with meaningful PFCF only.
PB' s 10-Year PFCF Range
Min: 5.88  Med: 12.61 Max: 95.61
Current: 11.9
5.88
95.61
POCF 11.47
PB's POCF is ranked lower than
59% of the 930 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 10.17 vs. PB: 11.47 )
Ranked among companies with meaningful POCF only.
PB' s 10-Year POCF Range
Min: 4.11  Med: 11.10 Max: 26.31
Current: 11.47
4.11
26.31
EV-to-EBIT 9.06
PB's EV-to-EBIT is ranked higher than
76% of the 1366 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 14.30 vs. PB: 9.06 )
Ranked among companies with meaningful EV-to-EBIT only.
PB' s 10-Year EV-to-EBIT Range
Min: 6  Med: 11.30 Max: 16.6
Current: 9.06
6
16.6
PEG 1.32
PB's PEG is ranked lower than
55% of the 542 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.12 vs. PB: 1.32 )
Ranked among companies with meaningful PEG only.
PB' s 10-Year PEG Range
Min: 0.98  Med: 1.65 Max: 6.22
Current: 1.32
0.98
6.22
Shiller P/E 16.89
PB's Shiller P/E is ranked higher than
52% of the 771 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 17.62 vs. PB: 16.89 )
Ranked among companies with meaningful Shiller P/E only.
PB' s 10-Year Shiller P/E Range
Min: 11.2  Med: 18.29 Max: 28.24
Current: 16.89
11.2
28.24
Days Sales Outstanding 21.89
PB's Days Sales Outstanding is ranked higher than
78% of the 770 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 35.19 vs. PB: 21.89 )
Ranked among companies with meaningful Days Sales Outstanding only.
PB' s 10-Year Days Sales Outstanding Range
Min: 23.88  Med: 42.45 Max: 138.11
Current: 21.89
23.88
138.11

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.83
PB's Dividend Yield is ranked lower than
68% of the 2112 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.57 vs. PB: 1.83 )
Ranked among companies with meaningful Dividend Yield only.
PB' s 10-Year Dividend Yield Range
Min: 0.99  Med: 1.55 Max: 2.49
Current: 1.83
0.99
2.49
Dividend Payout 0.24
PB's Dividend Payout is ranked higher than
67% of the 1248 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.24 vs. PB: 0.24 )
Ranked among companies with meaningful Dividend Payout only.
PB' s 10-Year Dividend Payout Range
Min: 0.16  Med: 0.23 Max: 0.45
Current: 0.24
0.16
0.45
Dividend growth (3y) 11.30
PB's Dividend growth (3y) is ranked higher than
61% of the 640 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.20 vs. PB: 11.30 )
Ranked among companies with meaningful Dividend growth (3y) only.
PB' s 10-Year Dividend growth (3y) Range
Min: 0  Med: 12.10 Max: 98.3
Current: 11.3
0
98.3
Yield on cost (5-Year) 3.18
PB's Yield on cost (5-Year) is ranked higher than
54% of the 2110 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.91 vs. PB: 3.18 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
PB' s 10-Year Yield on cost (5-Year) Range
Min: 1.72  Med: 2.70 Max: 4.33
Current: 3.18
1.72
4.33
Share Buyback Rate -13.60
PB's Share Buyback Rate is ranked lower than
83% of the 931 Companies
in the Global Banks - Regional - US industry.

( Industry Median: -1.50 vs. PB: -13.60 )
Ranked among companies with meaningful Share Buyback Rate only.
PB' s 10-Year Share Buyback Rate Range
Min: -1.1  Med: -15.70 Max: -25.7
Current: -13.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.97
PB's Price/Tangible Book is ranked lower than
94% of the 1331 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.18 vs. PB: 2.97 )
Ranked among companies with meaningful Price/Tangible Book only.
PB' s 10-Year Price/Tangible Book Range
Min: 1.77  Med: 3.68 Max: 5.89
Current: 2.97
1.77
5.89
Price/Projected FCF 0.75
PB's Price/Projected FCF is ranked lower than
58% of the 775 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.68 vs. PB: 0.75 )
Ranked among companies with meaningful Price/Projected FCF only.
PB' s 10-Year Price/Projected FCF Range
Min: 0.57  Med: 0.85 Max: 1.51
Current: 0.75
0.57
1.51
Price/DCF (Earnings Based) 0.91
PB's Price/DCF (Earnings Based) is ranked lower than
63% of the 54 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.78 vs. PB: 0.91 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.94
PB's Price/Median PS Value is ranked higher than
72% of the 1286 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.11 vs. PB: 0.94 )
Ranked among companies with meaningful Price/Median PS Value only.
PB' s 10-Year Price/Median PS Value Range
Min: 0.64  Med: 0.97 Max: 1.23
Current: 0.94
0.64
1.23
Price/Peter Lynch Fair Value 1.32
PB's Price/Peter Lynch Fair Value is ranked lower than
68% of the 357 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.99 vs. PB: 1.32 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
PB' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.59  Med: 1.41 Max: 2.66
Current: 1.32
0.59
2.66
Price/Graham Number 1.33
PB's Price/Graham Number is ranked lower than
82% of the 1154 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.88 vs. PB: 1.33 )
Ranked among companies with meaningful Price/Graham Number only.
PB' s 10-Year Price/Graham Number Range
Min: 1.01  Med: 1.62 Max: 2.38
Current: 1.33
1.01
2.38
Earnings Yield (Greenblatt) (%) 11.27
PB's Earnings Yield (Greenblatt) (%) is ranked higher than
78% of the 1364 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 6.40 vs. PB: 11.27 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PB' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 6  Med: 8.90 Max: 16.5
Current: 11.27
6
16.5
Forward Rate of Return (Yacktman) (%) 17.44
PB's Forward Rate of Return (Yacktman) (%) is ranked higher than
59% of the 770 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 13.43 vs. PB: 17.44 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
PB' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 8.2  Med: 15.70 Max: 21.7
Current: 17.44
8.2
21.7

Business Description

Industry: Banks » Banks - Regional - US
Compare:MTB, USB, PNC, CFR, MWG » details
Traded in other countries:PPY.Germany,
Prosperity Bancshares, Inc., is a Texas corporation, was formed in 1983 as a vehicle to acquire the former Allied Bank in Edna, Texas which was chartered in 1949 as The First National Bank of Edna and is now known as Prosperity Bank. The Company operates as the financial holding company for Prosperity Bank (the 'Bank'), which provides a line of financial products and services to small and medium-sized businesses and consumers. As of December 31, 2013, the Bank operated 238 full service banking locations; 63 in the Houston area; including The Woodlands; 26 in the South Texas area, including Corpus Christi and Victoria; 35 in the Dallas/Fort Worth area; 22 in the East Texas area; 36 in the Central Texas area, including Austin and San Antonio; 34 in the West Texas area, including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area and 6 in the Central Oklahoma area. During 2013, the Company completed three acquisitions including East Texas Financial Services Inc., Coppermark Bancshares, Inc. and FVNB Corp. Combined, these acquisitions added 30 banking centers after consolidation. The company's market consists of the communities served by its banking centers. The diverse nature of the economies in each local market served by the company provides it with a varied customer base and allows it to spread its lending risk throughout a number of different industries including professional service firms and their principals, manufacturing, tourism, recreation, petrochemicals, farming and ranching. The company competes with other commercial banks, savings banks, savings and loan associations, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment banking firms, asset-based nonbank lenders and certain other nonfinancial entities, including retail stores which might maintain their own credit programs and certain governmental organizations which might offer more favorable financing than the company. The company and the bank are subject to regulation, supervision and examination by federal and state banking authorities.
» More Articles for PB

Headlines

Articles On GuruFocus.com
5 Undervalued Stocks Trading Below Peter Lynch Earnings Line Jun 05 2015 
Efficiency Ratio – Bank Of America Lagging Behind Its Peers Feb 20 2015 
Third Avenue Management Comments on Prosperity Bancshares Jun 20 2014 
Undervalued and Predictable Banks with Yield Aug 06 2013 
Top Insider Buys: BRK.A, PB, CBK Dec 24 2012 

More From Other Websites
Prosperity Bancshares, Inc.® Releases Results of 2015 DODD-FRANK ACT Stress Test Jun 25 2015
Prosperity Bancshares, Inc.® Releases Results Of 2015 Dodd-Frank Act Stress Test Jun 25 2015
Edited Transcript of PB earnings conference call or presentation 24-Apr-15 2:30pm GMT Jun 25 2015
Coverage initiated on Prosperity Bancshares by Piper Jaffray Jun 12 2015
Prosperity Bancshares, Inc.® Invites You To Join Its Second Quarter 2015 Earnings Conference Call... Jun 10 2015
Prosperity Bancshares, Inc.® Invites You To Join Its Second Quarter 2015 Earnings Conference Call... Jun 09 2015
Click here for presentation material May 21 2015
PROSPERITY BANCSHARES INC Files SEC form 8-K, Change in Directors or Principal Officers, Financial... May 15 2015
PROSPERITY BANCSHARES INC Financials May 15 2015
Prosperity Bancshares, Inc.® Announces Management Changes May 14 2015
Prosperity Bancshares, Inc.® Announces Management Changes May 14 2015
10-Q for Prosperity Bancshares, Inc. May 10 2015
PROSPERITY BANCSHARES INC Files SEC form 10-Q, Quarterly Report May 08 2015
BOK Financial Gains on Q1 Earnings Beat, Revenues Up Y/Y - Analyst Blog May 01 2015
Cullen/Frost (CFR) Gains Over 2% on Q1 Earnings Beat - Analyst Blog Apr 30 2015
Prosperity Bancshares Posts In-Line Q1 Earnings, Costs Up - Analyst Blog Apr 27 2015
Q1 2015 Prosperity Bancshares Inc Earnings Release - Before Market Open Apr 24 2015
Prosperity Bancshares, Inc.® Reports First Quarter 2015 Earnings Apr 24 2015
Prosperity Bancshares meets 1Q profit forecasts Apr 24 2015
Prosperity Bancshares meets 1Q profit forecasts Apr 24 2015

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