Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals in the United States. More Details
Flawless balance sheet and fair value.
Share Price & News
How has Preferred Bank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PFBC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PFBC's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: PFBC exceeded the US Banks industry which returned 94.7% over the past year.
Return vs Market: PFBC exceeded the US Market which returned 49.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Preferred Bank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StThis Insider Has Just Sold Shares In Preferred Bank (NASDAQ:PFBC)
1 month ago | Simply Wall StShould You Buy Preferred Bank (NASDAQ:PFBC) For Its Upcoming Dividend?
2 months ago | Simply Wall StTrade Alert: The Independent Director Of Preferred Bank (NASDAQ:PFBC), Wayne Wu, Has Sold Some Shares Recently
Is Preferred Bank undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PFBC ($65.22) is trading below our estimate of fair value ($143.64)
Significantly Below Fair Value: PFBC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PFBC is poor value based on its PE Ratio (13.1x) compared to the US Banks industry average (11.9x).
PE vs Market: PFBC is good value based on its PE Ratio (13.1x) compared to the US market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: PFBC is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: PFBC is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.1x).
How is Preferred Bank forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PFBC's forecast earnings growth (5.2% per year) is above the savings rate (2%).
Earnings vs Market: PFBC's earnings (5.2% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: PFBC's earnings are forecast to grow, but not significantly.
Revenue vs Market: PFBC's revenue (8.4% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: PFBC's revenue (8.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PFBC's Return on Equity is forecast to be low in 3 years time (15.7%).
How has Preferred Bank performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PFBC has high quality earnings.
Growing Profit Margin: PFBC's current net profit margins (46.1%) are lower than last year (47.4%).
Past Earnings Growth Analysis
Earnings Trend: PFBC's earnings have grown by 18.2% per year over the past 5 years.
Accelerating Growth: PFBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PFBC had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Banks industry average (17.9%).
Return on Equity
High ROE: PFBC's Return on Equity (13.8%) is considered low.
How is Preferred Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: PFBC's Assets to Equity ratio (10.1x) is moderate.
Allowance for Bad Loans: PFBC has a sufficient allowance for bad loans (295%).
Low Risk Liabilities: 96% of PFBC's liabilities are made up of primarily low risk sources of funding.
Loan Level: PFBC has an appropriate level of Loans to Assets ratio (75%).
Low Risk Deposits: PFBC's Loans to Deposits ratio (87%) is appropriate.
Level of Bad Loans: PFBC has an appropriate level of bad loans (0.5%).
What is Preferred Bank current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PFBC's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: PFBC's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PFBC has been paying a dividend for less than 10 years.
Growing Dividend: PFBC's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.7%), PFBC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Li Yu (79 yo)
Mr. Li Yu founded Preferred Bank and has been its Chairman since December 1991 and Chief Executive Officer since 1993 and served as its President from 1993 to August 22, 2012. He serves as Corporate Secret...
CEO Compensation Analysis
Compensation vs Market: Li's total compensation ($USD3.74M) is above average for companies of similar size in the US market ($USD2.44M).
Compensation vs Earnings: Li's compensation has been consistent with company performance over the past year.
Experienced Management: PFBC's management team is seasoned and experienced (11 years average tenure).
Experienced Board: PFBC's board of directors are seasoned and experienced ( 10 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PFBC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Preferred Bank's company bio, employee growth, exchange listings and data sources
- Name: Preferred Bank
- Ticker: PFBC
- Exchange: NasdaqGS
- Founded: 1991
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$972.644m
- Shares outstanding: 14.91m
- Website: https://www.preferredbank.com
Number of Employees
- Preferred Bank
- 601 South Figueroa Street
- 47th and 48th Floor
- Los Angeles
- United States
Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/13 03:43|
|End of Day Share Price||2021/05/12 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.