Returns Breakdown
1.52
Return on Assets
0.63
Return on Sales
| Return on Assets | 1.52 | |
| Return on Equity | 8.94 | |
| Return Capital | 0.0173 | |
| Return on Sales | 0.63 |
Should you continue to rely on Prosperity Bancshares (NYSE:PB) management?
 | By Raphi Shpitalnik | Macroaxis Story |
Prosperity Bancshares Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 76,723.2. The current year Revenue Per Employee is expected to grow to about 222.3 K, whereas Average Assets are forecasted to decline to about 25 B. The fundamental aim of this short article is to break down our forecasting of Prosperity for investors. We will try to forecast Prosperity Bancshares outlook for February.
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Reviewed by Rifka Kats
Over 81.0% of Prosperity Bancshares shares are owned by institutional investors. Institutional ownership of Prosperity Bancshares refers to the amount of Prosperity Bancshares equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Prosperity, including its current ownership diagnostics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Prosperity Bancshares. Your research has to be compared to or analyzed against Prosperity Bancshares' peers to derive any actionable benefits. When done correctly, Prosperity Bancshares' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Prosperity Bancshares.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Prosperity Bancshares. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Prosperity Bancshares
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Prosperity Bancshares' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Prosperity Bancshares's Liquidity
Prosperity Bancshares financial leverage refers to using borrowed capital as a funding source to finance Prosperity Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Prosperity Bancshares financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Prosperity Bancshares' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Prosperity Bancshares' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Prosperity Bancshares's total debt and its cash.
Prosperity Bancshares Gross Profit
Prosperity Bancshares Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Prosperity Bancshares previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Prosperity Bancshares Gross Profit growth over the last 10 years. Please check Prosperity Bancshares' gross profit and other fundamental indicators for more details.
Breaking down Prosperity Bancshares Further
Prosperity Bancshares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.33. However, we do advice investors to further question Prosperity Bancshares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Prosperity Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.