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PFBCPreferred Bank
$105.22$1.2B
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  4. Financial Ratios

Preferred Bank (PFBC) Financial Ratios

Latest Ratios: P/E Ratio 10.1x · EV/EBITDA 4.3x · ROE 17.2%. (2004–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

PFBC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.2B$1.2B$1.2B$1.0B$1.1B$1.1B$751M$905M$653M$852M$733M
Enterprise Value$823M$789M$571M$319M$526M$207M$130M$526M$226M$510M$557M
P/E Ratio →10.119.078.956.948.5811.2010.8511.659.3419.8620.48
P/S Ratio2.502.432.252.163.674.883.413.883.205.235.75
P/B Ratio1.711.541.531.501.751.821.431.931.572.402.46
P/FCF7.477.277.166.027.718.977.3511.226.7816.4414.10
P/OCF7.417.217.125.947.698.927.2410.436.5916.0213.93

P/E links to full P/E history page with 30-year chart

PFBC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.581.100.661.750.950.592.261.113.134.36
EV / EBITDA4.304.123.071.502.911.531.314.672.276.279.18
EV / EBIT4.344.163.101.522.941.551.344.722.296.349.32
EV / FCF—4.733.491.843.671.741.276.522.359.8510.71

PFBC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin55.0%55.0%52.2%58.8%82.0%89.0%70.0%71.9%75.0%79.5%80.3%
Operating Margin38.0%38.0%35.4%43.7%59.4%61.2%44.0%47.8%48.4%49.4%46.8%
Net Profit Margin26.8%26.8%25.1%31.1%42.7%43.5%31.5%33.6%34.8%26.6%28.5%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE17.2%17.2%17.9%22.6%21.2%17.1%14.0%17.7%18.4%13.3%12.9%
ROA1.8%1.8%1.9%2.3%2.1%1.7%1.4%1.8%1.8%1.2%1.2%
ROIC13.5%13.5%15.4%19.0%17.3%14.3%11.8%15.1%15.1%13.6%12.5%
ROCE4.4%4.4%19.1%23.4%21.3%17.6%14.4%18.4%18.4%16.9%15.8%

PFBC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.490.490.220.240.270.290.220.250.240.300.44
Debt / EBITDA2.012.010.890.790.931.261.191.061.011.292.14
Net Debt / Equity—-0.54-0.79-1.04-0.92-1.47-1.18-0.81-1.02-0.96-0.59
Net Debt / EBITDA-2.21-2.21-3.22-3.40-3.20-6.34-6.29-3.36-4.28-4.19-2.91
Debt / FCF—-2.54-3.67-4.18-4.03-7.22-6.08-4.70-4.43-6.59-3.40
Interest Coverage0.880.880.781.113.815.322.411.792.412.893.19

Net cash position: cash ($807M) exceeds total debt ($384M)

PFBC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio149.60149.600.140.220.220.290.230.190.200.200.19
Quick Ratio149.60149.600.140.220.220.290.230.190.200.200.19
Cash Ratio140.19140.190.130.160.130.200.170.130.140.140.11
Asset Turnover—0.070.080.070.050.040.040.050.050.040.04
Inventory Turnover———————————
Days Sales Outstanding———————————

PFBC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield2.8%3.2%3.2%3.0%2.3%2.0%2.4%2.0%2.4%1.3%1.2%
Payout Ratio28.6%28.6%28.7%20.8%19.5%22.5%25.8%23.3%22.0%25.4%23.2%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield9.9%11.0%11.2%14.4%11.7%8.9%9.2%8.6%10.7%5.0%4.9%
FCF Yield13.4%13.8%14.0%16.6%13.0%11.2%13.6%8.9%14.7%6.1%7.1%
Buyback Yield7.5%7.7%3.3%5.3%3.0%1.7%0.3%2.3%0.2%1.7%0.0%
Total Shareholder Yield10.3%10.8%6.5%8.3%5.3%3.7%2.7%4.3%2.6%3.0%1.2%
Shares Outstanding—$13M$14M$14M$15M$15M$15M$15M$15M$14M$14M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

CRE Concentration and Sensitivity

Premium Valuation Amidst Stagnant Returns

Based on reported financial data, PFBC trades at a P/B of 1.70, which appears elevated relative to its peers and its own historical ROE performance, suggesting that the market may be pricing in a premium for its niche commercial franchise despite recent earnings volatility.

The current P/B multiple implies investor expectations for a significant recovery in return on tangible equity that is not currently supported by the 4.0% to 5.2% ROE range observed over the last ten quarters. This valuation gap warrants caution, as it suggests the market is either overestimating the durability of the bank's fee-based trade finance income or underestimating the potential for credit-related impairments in its CRE portfolio.

DuPont Analysis Reveals Margin Compression

According to the bank's quarterly filings, the ROE has trended downward from 5.2% in 2023Q4 to 4.0% in 2026Q1, primarily driven by a persistent NIM compression that has remained locked between 0.9% and 1.0% throughout the observed period.

The bank's profitability is currently constrained by its inability to expand net interest margins, which suggests that funding costs are rising in lockstep with asset yields. While the lean efficiency ratio provides some support to the bottom line, the lack of meaningful asset utilization growth indicates that the bank's core profitability is currently stagnant.

Efficiency Gains Offset Margin Headwinds

As reported in financial statements, PFBC has maintained an impressive efficiency ratio, fluctuating between 11.7% and 20.4%, which serves as a critical buffer against the persistent 0.9% to 1.0% NIM that has characterized the bank's performance over the last ten quarters.

The bank's ability to keep operating expenses low is a clear competitive advantage, yet this operational discipline is currently being neutralized by the lack of margin expansion. Investors should monitor whether the bank can maintain this cost structure if it is forced to increase investment in compliance or technology to support its specialized commercial client base.

Misapplied P/E Multiples Obscure Risk

Based on an analysis of regional banking metrics, the P/E ratio is the most commonly misapplied metric for PFBC, as it fails to account for the lumpy nature of provision expenses and the volatility inherent in the bank's CRE-heavy loan portfolio.

Using P/E to value PFBC obscures the underlying credit risk, as earnings can be artificially inflated or depressed by management's subjective adjustments to the allowance for credit losses. A more appropriate valuation framework would focus on P/TBV, which provides a cleaner view of the bank's tangible capital base and its ability to absorb potential losses in its specialized real estate portfolio.

Download Financial Ratios Data

Includes 30+ ratios · 22 years · Updated daily

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PFBC — Frequently Asked Questions

Quick answers to the most common questions about buying PFBC stock.

What is Preferred Bank's P/E ratio?

Preferred Bank's current P/E ratio is 10.1x. The historical average is 12.4x. This places it at the 37th percentile of its historical range.

What is Preferred Bank's EV/EBITDA?

Preferred Bank's current EV/EBITDA is 4.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.7x.

What is Preferred Bank's ROE?

Preferred Bank's return on equity (ROE) is 17.2%. The historical average is 9.5%.

Is PFBC stock overvalued?

Based on historical data, Preferred Bank is trading at a P/E of 10.1x. This is at the 37th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Preferred Bank's dividend yield?

Preferred Bank's current dividend yield is 2.83% with a payout ratio of 28.6%.

What are Preferred Bank's profit margins?

Preferred Bank has 55.0% gross margin and 38.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Preferred Bank have?

Preferred Bank's Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.