Prosperity Bancshares Inc. Common Stock (PB)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a bank, Prosperity Bancshares is a spread business: gather deposits, underwrite loans, and hope credit losses stay modest. The filed figures show consistency. In fiscal 2023, the year ended 2023-12-31, net income was $419.3M and diluted EPS $4.51. In fiscal 2024, the year ended 2024-12-31, net income was $479.4M and EPS $5.05. In fiscal 2025, the year ended 2025-12-31, net income was $542.8M and EPS $5.72. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $168.6M and diluted EPS $1.67, versus $135.2M and $1.42 in fiscal Q2 2025, the quarter ended 2025-06-30. That is respectable recent momentum. But the computed Lynch classification is SLOW GROWER, with profit growth of 0.5% a year over five years. At the 2026-10-13 close of $66.33, FairStock calculates a P/E of 11.48 and P/B of 0.80, with ROE of 7.07%, dividend yield 3.62%, beta 0.68, FairStock Score 58/100, and Piotroski F-Score 5/9. A sub-book price offers Graham-style comfort, but a 7.07% ROE suggests the franchise earns only modestly on equity. The low beta and dividend are attractive for a steady operator, but the data do not include CET1, net interest margin, or credit measures such as nonperforming loans and charge-offs; combined ratio is not applicable to a bank. Without those bank-specific measures, I cannot fully judge capital adequacy or underwriting risk. This looks like a fair-to-cheap bank, not an obvious bargain, because slow long-term growth and unseen credit risk may explain the discount to book.

In plain English: Prosperity Bancshares is a regional bank that takes deposits and makes loans to businesses and consumers. The bank is profitable and pays a solid dividend, but it earns only a modest return on the money shareholders have invested and its long-term profit growth has been slow. At the current price, it looks somewhat cheap compared with the value of its net assets, though the slow growth and limited credit details keep it from looking like an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer