PFBC Stock Analysis: Preferred Bank | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 1.254m USD | 12M Return: 23.6% | US7403674044 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 13.6M
EPS Trend: -9.4%
Qual. Beats: 1
Rev. Trend: 47.6%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Preferred Bank is a Los Angeles-headquartered regional bank (NASDAQ: PFBC) that serves small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals. On the funding side, it accepts checking, savings, and money market deposit accounts, fixed-rate certificates of deposit (both retail and non-retail), and individual retirement accounts. Regional banks such as PFBC typically compete on relationship-based service and local market knowledge rather than scale, distinguishing them from larger money-center institutions.
On the lending side, the bank provides a mix of real estate-secured credit and commercial loans, including mortgages on retail, industrial, office, special-purpose, and residential properties; construction loans; working capital lines of credit and term loans for capital expenditures; commercial and stand-by letters of credit; and Small Business Administration (SBA) loans, which are partially government-guaranteed programs used for purposes such as owner-occupied real estate, acquisitions, start-ups, franchise financing, working capital, and equipment purchases.
In addition, Preferred Bank operates a trade finance unit offering export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing, export financing, and bills purchase programs - a specialty service typically associated with banks serving import/export-oriented business communities. The bank also provides cash management and internet, mobile, and tablet banking services. The company was incorporated in 1991 and has been listed since its April 1998 IPO.
- Net interest margin compression expected as Fed cuts rates
- Commercial real estate loan losses rise from office sector exposure
- Deposit growth from Asian-American business banking niche accelerates
| Net Income: 135.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -0.10 > 1.0 |
| NWC/Revenue: 154.0% < 20% (prev -1.05k%; Δ 1.20k% < -1%) |
| CFO/TA 0.02 > 3% & CFO 171.9m > Net Income 135.4m |
| Net Debt (-330.2m) to EBITDA (195.3m): -1.69 < 3 |
| Current Ratio: 255.0 > 1.5 & < 3 |
| Outstanding Shares: last quarter (12.0m) vs 12m ago -7.59% < -2% |
| Gross Margin: 55.82% > 18% (prev 54.22%; Δ 1.59% > 0.5%) |
| Asset Turnover: 6.75% > 50% (prev 6.91%; Δ -0.16% > 0%) |
| Interest Coverage Ratio: 0.90 > 6 (EBIT TTM 193.5m / Interest Expense TTM 214.2m) |
| A: 0.10 (Total Current Assets 782.6m - Total Current Liabilities 3.07m) / Total Assets 7.73b |
| B: 0.11 (Retained Earnings 826.4m / Total Assets 7.73b) |
| C: 0.03 (EBIT TTM 193.5m / Avg Total Assets 7.50b) |
| D: 0.11 (Book Value of Equity 793.5m / Total Liabilities 6.94b) |
| Altman-Z'' = 1.30 = BB |
| DSRI: 0.79 (Receivables 32.8m/41.5m, Revenue 506.3m/502.9m) |
| GMI: 0.97 (GM 54.22% / 55.82%) |
| AQI: 1.01 (AQ_t 0.89 / AQ_t-1 0.88) |
| SGI: 1.01 (Revenue 506.3m / 502.9m) |
| TATA: -0.00 (NI 135.4m - CFO 171.9m) / TA 7.73b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of September 27, 2026, the stock is trading at USD 109.48 with a total of 225,669 shares traded. Over the past week, the price has changed by +3.85%, over one month by +5.89%, over three months by +5.31% and over the past year by +23.57%.
Current recommended Stop Loss: 105.20 (which is 3.9% or 2 ATR below the current price).
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 | 113.2 | 3.4% |
P/E Trailing = 9.925
P/E Forward = 8.3195
P/S = 4.375
P/B = 1.6365
P/EG = 0.9441
Revenue TTM = 506.3m USD
EBIT TTM = 193.5m USD
EBITDA TTM = 195.3m USD
Long Term Debt = 348.7m USD (from longTermDebt, last fiscal year)
Short Term Debt = 3.07m USD (from shortTermDebt, last quarter)
Debt = 419.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 34.4m
Net Debt = -330.2m USD (calculated: Debt 419.6m - CCE 749.8m)
Enterprise Value = 923.8m USD (1.25b + Debt 419.6m - CCE 749.8m)
Interest Coverage Ratio = 0.90 (Ebit TTM 193.5m / Interest Expense TTM 214.2m)
EV/FCF = 5.50x (Enterprise Value 923.8m / FCF TTM 167.9m)
FCF Yield = 18.18% (FCF TTM 167.9m / Enterprise Value 923.8m)
FCF Margin = 33.16% (FCF TTM 167.9m / Revenue TTM 506.3m)
Net Margin = 26.75% (Net Income TTM 135.4m / Revenue TTM 506.3m)
Gross Margin = 55.82% ((Revenue TTM 506.3m - Cost of Revenue TTM 223.7m) / Revenue TTM)
Gross Margin QoQ = 57.33% (prev 56.08%)
Tobins Q-Ratio = 0.12 (Enterprise Value 923.8m / Total Assets 7.73b)
Interest Expense / Debt = 51.06% (Interest Expense 214.2m / Debt 419.6m)
Taxrate = 30.01% (58.1m / 193.5m)
NOPAT = 135.4m (EBIT 193.5m * (1 - 30.01%))
Current Ratio = 255.0 (out of range, set to none) (Total Current Assets 782.6m / Total Current Liabilities 3.07m)
Debt / Equity = 0.53 (Debt 419.6m / totalStockholderEquity, last quarter 793.5m)
Debt / EBITDA = -1.69 (Net Debt -330.2m / EBITDA 195.3m)
Debt / FCF = -1.97 (Net Debt -330.2m / FCF TTM 167.9m)
Total Stockholder Equity = 782.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.80% (Net Income 135.4m / Total Assets 7.73b)
RoE = 17.32% (Net Income TTM 135.4m / Total Stockholder Equity 782.2m)
RoCE = 17.11% (EBIT 193.5m / Capital Employed (Equity 782.2m + L.T.Debt 348.7m))
RoIC = 1.76% (NOPAT 135.4m / Invested Capital 7.71b)
WACC = 5.60% (E(1.25b)/V(1.67b) * Re(7.47%) + (debt cost/tax rate unavailable))
Discount Rate = 7.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.72 | Cagr: -5.66%
[DCF] Terminal Value 75.64% ; FCFF base≈166.9m ; Y1≈169.7m ; Y5≈184.4m
[DCF] Fair Price = 269.2 (EV 2.86b - Net Debt -330.2m = Equity 3.19b / Shares 11.9m; r=8.35% [WACC [floored]]; 5y FCF grow 1.53% → 2.50% )
EPS Correlation: -9.37 | EPS CAGR: -0.55% | SUE: 1.03 | # QB: 1
Revenue Correlation: 47.56 | Revenue CAGR: 1.88% | SUE: 0.67 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.69 | Chg30d=-0.34% | Revisions=-29% | Analysts=6
EPS current Year (2026-12-31): EPS=10.74 | Chg30d=+0.07% | Revisions=+12% | GrowthEPS=+3.2% | GrowthRev=+0.2%
EPS next Year (2027-12-31): EPS=11.07 | Chg30d=+0.85% | Revisions=-38% | GrowthEPS=+3.0% | GrowthRev=+5.7%
[Analyst] Revisions Ratio: -24% (up=5, down=9)