Bank On Prosperity
Prosperity Bankshares This Texas-based holding company owns Prosperity Bank, which provides financial products and services to small and medium-sized businesses and consumers.
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Prosperity showed its true colour (purple) during the credit crisis when it was faced with the double whammy of (1) uncertainty surrounding US banks and (2) the decline in oil from $145 to $35.
In the face of these challenges, the bank fared well and earnings stalled for 2 quarters before resuming their ascent. In addition, of the 300 companies that are Purple Chips, PB has the 4th highest shareholder value ratio. The shareholder value ratio is defined by share buybacks, dividends paid and debt reductions.
Purple Chips 12 -18 month target: $USD 62.00
LOW VALUATION IN PROSPERITY BANCSHARES AT $51.59 (PB-US, $51.56) FULL POSITION
PURPLE CHIPS TARGET: $62.00 POSITION SIZE: FULL (5.0) P/E: 10.9X DIV: $1.09 (2.1%) MKT CAP: $3.6B DEBT: $500M RETURN ON CAPITAL: N/A EARNINGS YIELD: 10.4% 5 YR EPS Growth rate*:11.5% P/E/G Ratio: 1.08 EPS: $4.17 2015 EST.: $4.31 2016 EST.: $4.41
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
