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Preferred Bank (PFBC) Stock Grade

PFBC · Financial Services

A+
Grade updated: July 18, 2026
Computed by the GradeMyInvestments scoring model from revenue growth, profitability, balance-sheet strength, and analyst targets.
Market Cap
$1.2B
P/E Ratio
8.9
Revenue Growth (YoY)
-4.1%
Net Margin
26.8%
Return on Equity
16.9%
Dividend Yield
3.2%

About Preferred Bank's fundamentals

Preferred Bank operates with a strong net margin of 26.8% and delivers a solid return on equity of 16.9%, indicating efficient profitability relative to shareholder capital. The company trades at a P/E ratio of 8.9, which is relatively low for the banking sector. However, the bank is facing headwinds with revenue declining 4.1% year-over-year, suggesting weakness in lending or fee-generating activities. The company currently offers a 3.2% dividend yield, providing income to shareholders despite the recent revenue contraction.

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