CluenexProsperity Bancshares PB
Prosperity Bancshares scores weak on business quality (3.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Prosperity Bancshares does
Prosperity Bancshares operates as a regional financial holding company, providing retail and commercial banking services to customers primarily through Prosperity Bank. It makes money by collecting deposits and extending loans across Texas and Oklahoma.
- What it does best
Prosperity excels at converting revenue into free cash flow, posting an fcf margin in the top decile of its sector at 83%. This cash conversion efficiency stems from a low-overhead branch model that avoids excessive capital expenditures, with capex sitting at just $31.0 million against $590.0 million in free cash flow.
- The main risk
The primary threat comes from sustained interest rate pressures that could squeeze lending margins or asset values. As a regional banking player, if rate environments shift unfavorably or economic conditions slow loan demand, its 4.8% revenue growth could stall quickly.
Quality, check by check
Scored against its own industry, from company filings.
Net margin stands at a solid 40.4%, generating $562.0 million in net income on $1.4B in revenue. However, with an ROE of 7.1% sitting in the sector's 12th percentile, profitability does not scale efficiently relative to equity.
The company lacks a meaningful economic moat, reflected in its low moat score and a return on equity of 7.1% that sits in the bottom quartile of its sector at the 12th percentile. Regional banking deposits face fierce competition, making customer lock-in weak.
Revenue grew at 4.8% to reach $1.4B, marking an acceleration compared to the flat historical periods seen in annual summaries where revenue hovered around $1.1B to $1.2B.
The balance sheet carries total debt of $201.0 million against a debt-to-equity ratio of 0.03, showing minimal leverage. Free cash flow reached $590.0 million, up from $517.0 million previously, indicating a strengthening cash position.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on PB
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Prosperity Bancshares scores weak on the Cluenex quality check (3.0 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 28, 2026.
See PB today
- Today's verdict on PB, and why
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Cite this page: Cluenex, “Prosperity Bancshares (PB)”, https://cluenex.com/stocks/pb/, data as of Oct 10, 2026.