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Is this Large Market Cap Stock target price reasonable for Prosperity Bancshares Inc. (NYSE:PB)?

The company in question is, Prosperity Bancshares Inc. (NYSE:PB) currently with a stock price of 54.49 (1.57% today). The market cap for Prosperity Bancshares Inc. is 3754.96, and is in the sector Financial, and Regional – Southwest Banks industry. The target price for Prosperity Bancshares Inc. is 55.14. Currently Prosperity Bancshares Inc. is trading with a P/E of 13.5, and a forward P/E of 13.3. Average volume for Prosperity Bancshares Inc. is 322.59 and so far today it is 75048.

Performance in the last year for Prosperity Bancshares Inc. has been 13.27%. For EPS growth, Prosperity Bancshares Inc. has seen a growth of -5.20%, and is looking to grow in the next year to 2.26%. More long term stats show that EPS growth has been 8.50% over the last five years and could be 10.00% for the next five years. Prosperity Bancshares Inc. has seen sales growth quarter over quarter at 0.90%, with EPS growth quarter over quarter at -4.70%. The 20-day simple moving average is 1.20%, with the 200-day simple moving average coming to 12.51%.

Since the IPO date for Prosperity Bancshares Inc. on the 11/12/1998, Prosperity Bancshares Inc. has seen performance year to date to be 14.18%. With Prosperity Bancshares Inc. trading at 54.49, the dividend yield is 2.24%, and the EPS is 3.98.

So could Prosperity Bancshares Inc., be undervalued? Well as said before P/E is 13.5. The PEG is 1.35, P/S is 5.56 and the P/B is at 1.05. The P/cash is 9.73, with P/free cash flow at 14.89.

Prosperity Bancshares Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Prosperity Bancshares Inc. has a gross margin of *TBA, an operating margin of 90.20% and a profit margin of 41.20%.Payout ratio for Prosperity Bancshares Inc. is 29.50%. Return on assets come to 1.30% with return on investment coming to 13.80%.

Insider ownership for Prosperity Bancshares Inc., is at 1.50% and institutional ownership comes to 75.90%. Outstanding shares are at 69.99. While shares float is 66.04. The float short is currently 7.88%, and short ratio is 16.12.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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