# Preferred Bank (PFBC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Financial Services / Banks. Price $103.52, market value $1.2 billion.

## Valuation
- **P/E (trailing): 9.7×** (5-yr avg 7.8×, 3-yr avg 7.9×). Preferred Bank trades at 9.7× trailing earnings, well above its own five-year average of 7.8×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 9.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.18**. A PEG of 1.18 is in the range usually read as fairly priced for its growth.
- **Price / sales: 4.3×**. Each dollar of revenue is priced at 4.3×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 13.6%** (5-yr avg 15.5%). Free cash flow equals 13.6% of the market value, in line with its five-year average of 15.5%. Above 5% is generally attractive.
- **Earnings yield: 10.3%**. The inverse of the P/E: 10.3% of the price is earned each year.

## Profitability
- **Net margin: 47.2%**. 47.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.9%**. 16.9% on shareholders' equity is solid.
- **Return on assets: 1.8%**. Each dollar of assets produces 1.8% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -0.2%** (3-yr 3.7%/yr). Revenue fell 0.2% over the last year.
- **EPS growth (1 yr): 8.0%** (3-yr 6.2%/yr). Earnings per share rose 8.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 5.2%/yr**. Free cash flow has compounded at 5.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.
- **Cash and short-term investments: $807 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 3.09%** ($3.15 per share, trailing). Preferred Bank yields 3.09%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 29%** (23% of free cash flow). 29% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 20.1%/yr** (1-yr 7.1%). The dividend has compounded at 20.1% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 13.0%**. Dividends plus net buybacks return 13.0% of the market value a year.

## Price and momentum
- **Total return (1 yr): 11.7%** (YTD 12.4%, 3-mo 7.3%). The shares are up 11.7% over twelve months including dividends.
- **From 52-week high: -7.8%** (27.0% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.43** (volatility 24%). Beta of 0.43 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PFBC · Page: https://foliofundamentals.com/stocks/pfbc

Not investment advice.