(PFBC) Preferred Bank - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 1.072m USD | Total Return: 18.8% in 12m
Avg Turnover: 9.19M
EPS Trend: -30.2%
Qual. Beats: 0
Rev. Trend: 63.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence
Preferred Bank (PFBC) is a California-based regional bank focused on serving small to mid-sized businesses, real estate developers, and high-net-worth individuals. Its portfolio includes a diverse range of deposit products, such as money market accounts and certificates of deposit, alongside specialized lending services for commercial and residential real estate construction.
The company operates within the commercial banking sector, where profitability often depends on the net interest margin-the difference between interest earned on loans and interest paid on deposits. Preferred Bank distinguishes itself by offering international trade finance services, including export letters of credit and documentary collections, which are critical for clients engaged in trans-Pacific commerce.
For a detailed breakdown of the companys historical performance and valuation metrics, consider reviewing the data available on ValueRay. Established in 1991, the bank maintains a significant presence in the Los Angeles metropolitan area, utilizing a business model that prioritizes relationship-based commercial lending over traditional retail branch expansion.
- Net interest margin sensitivity to Federal Reserve benchmark rate fluctuations
- Concentration in California commercial real estate loans impacts credit risk profile
- High percentage of non-interest bearing deposits lowers overall funding costs
- Expansion of trade finance services drives non-interest income growth
- Regulatory capital requirements influence dividend stability and share buyback capacity
| Net Income: 134.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -0.15 > 1.0 |
| NWC/Revenue: 165.5% < 20% (prev -1.01k%; Δ 1.18k% < -1%) |
| CFO/TA 0.02 > 3% & CFO 169.1m > Net Income 134.8m |
| Net Debt (-386.9m) to EBITDA (193.3m): -2.00 < 3 |
| Current Ratio: 183.0 > 1.5 & < 3 |
| Outstanding Shares: last quarter (12.3m) vs 12m ago -8.63% < -2% |
| Gross Margin: 55.38% > 18% (prev 0.53%; Δ 5.49k% > 0.5%) |
| Asset Turnover: 6.84% > 50% (prev 7.17%; Δ -0.33% > 0%) |
| Interest Coverage Ratio: 0.89 > 6 (EBITDA TTM 193.3m / Interest Expense TTM 215.3m) |
| A: 0.11 (Total Current Assets 840.0m - Total Current Liabilities 4.59m) / Total Assets 7.65b |
| B: 0.10 (Retained Earnings 802.3m / Total Assets 7.65b) |
| C: 0.03 (EBIT TTM 191.5m / Avg Total Assets 7.38b) |
| D: 0.14 (Book Value of Equity 995.8m / Total Liabilities 6.88b) |
| Altman-Z'' = 1.38 = BB |
| DSRI: 1.11 (Receivables 34.8m/31.8m, Revenue 504.8m/509.4m) |
| GMI: 0.96 (GM 55.38% / 53.13%) |
| AQI: 1.02 (AQ_t 0.89 / AQ_t-1 0.86) |
| SGI: 0.99 (Revenue 504.8m / 509.4m) |
| TATA: -0.00 (NI 134.8m - CFO 169.1m) / TA 7.65b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 94.70 with a total of 67,710 shares traded.
Over the past week, the price has changed by +4.73%,
over one month by +1.24%,
over three months by +6.34% and
over the past year by +18.79%.
Preferred Bank has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold PFBC.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 103.8 | 9.6% |
P/E Forward = 8.3195
P/S = 3.7811
P/B = 1.4256
P/EG = 0.9441
Revenue TTM = 504.8m USD
EBIT TTM = 191.5m USD
EBITDA TTM = 193.3m USD
Long Term Debt = 348.7m USD (from longTermDebt, last fiscal year)
Short Term Debt = 4.59m USD (from shortTermDebt, last quarter)
Debt = 418.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 35.1m
Net Debt = -386.9m USD (calculated: Debt 418.3m - CCE 805.2m)
Enterprise Value = 684.7m USD (1.07b + Debt 418.3m - CCE 805.2m)
Interest Coverage Ratio = 0.89 (Ebit TTM 191.5m / Interest Expense TTM 215.3m)
EV/FCF = 4.10x (Enterprise Value 684.7m / FCF TTM 166.8m)
FCF Yield = 24.36% (FCF TTM 166.8m / Enterprise Value 684.7m)
FCF Margin = 33.04% (FCF TTM 166.8m / Revenue TTM 504.8m)
Net Margin = 26.69% (Net Income TTM 134.8m / Revenue TTM 504.8m)
Gross Margin = 55.38% ((Revenue TTM 504.8m - Cost of Revenue TTM 225.2m) / Revenue TTM)
Gross Margin QoQ = 56.08% (prev 54.39%)
Tobins Q-Ratio = 0.09 (Enterprise Value 684.7m / Total Assets 7.65b)
Interest Expense / Debt = 51.48% (Interest Expense 215.3m / Debt 418.3m)
Taxrate = 30.15% (13.4m / 44.6m)
NOPAT = 133.8m (EBIT 191.5m * (1 - 30.15%))
Current Ratio = 183.0 (out of range, set to none) (Total Current Assets 840.0m / Total Current Liabilities 4.59m)
Debt / Equity = 0.54 (Debt 418.3m / totalStockholderEquity, last quarter 770.2m)
Debt / EBITDA = -2.00 (Net Debt -386.9m / EBITDA 193.3m)
Debt / FCF = -2.32 (Net Debt -386.9m / FCF TTM 166.8m)
Total Stockholder Equity = 770.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.83% (Net Income 134.8m / Total Assets 7.65b)
RoE = 17.48% (Net Income TTM 134.8m / Total Stockholder Equity 770.7m)
RoCE = 17.11% (EBIT 191.5m / Capital Employed (Equity 770.7m + L.T.Debt 348.7m))
RoIC = 1.75% (NOPAT 133.8m / Invested Capital 7.65b)
WACC = 6.06% (E(1.07b)/V(1.49b) * Re(8.42%) + (debt cost/tax rate unavailable))
Discount Rate = 8.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -5.02%
[DCF] Terminal Value 75.54% ; FCFF base≈166.3m ; Y1≈168.0m ; Y5≈180.2m
[DCF] Fair Price = 269.0 (EV 2.80b - Net Debt -386.9m = Equity 3.19b / Shares 11.8m; r=8.35% [WACC [floored]]; 5y FCF grow 0.74% → 2.50% )
EPS Correlation: -30.21 | EPS CAGR: -1.48% | SUE: 0.47 | # QB: 0
Revenue Correlation: 63.47 | Revenue CAGR: 4.94% | SUE: 0.66 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.64 | Chg30d=+2.80% | Revisions=+56% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.71 | Chg30d=+3.75% | Revisions=+56% | Analysts=5
EPS current Year (2026-12-31): EPS=10.62 | Chg30d=+2.27% | Revisions=+56% | GrowthEPS=+2.1% | GrowthRev=+1.5%
EPS next Year (2027-12-31): EPS=11.21 | Chg30d=+0.99% | Revisions=+25% | GrowthEPS=+5.5% | GrowthRev=+7.5%
[Analyst] Revisions Ratio: +56%