31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Preferred Bank

RESEARCH HISTORY	2022		2023		2024		2025
VALUE
VALUE	21		38		39		33
GROWTH
GROWTH	96		47		35		37
SAFETY
SAFETY	43		50		72		27
SENTIMENT
SENTIMENT	44		92		77		new
360° VIEW
360° VIEW	53		63		66		new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Preferred Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

ANALYSIS: With an Obermatt Combined Rank of 17 (worse than 83% compared with investment alternatives), Preferred Bank (Regional Banks, USA) shares have lower financial characteristics compared with similar stocks. Shares of Preferred Bank are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives), show below-average growth (Growth Rank of 37), and are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 17, is a sell recommendation based on Preferred Bank's financial characteristics. As the company Preferred Bank's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 33), low growth (Obermatt Growth Rank of 37), and risky financing practices (Obermatt Safety Rank of 27), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

RESEARCH HISTORY	2022		2023		2024		2025
VALUE
VALUE	21		38		39		33
GROWTH
GROWTH	96		47		35		37
SAFETY
SAFETY	43		50		72		27
COMBINED
COMBINED	54		26		46		17

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Preferred Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Preferred Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Preferred Bank. Price-to-Profit (also referred to as price-earnings, P/E) is 65 which means that the stock price compared with what market professionals expect for future profits is lower than for 65% of comparable companies, indicating a good value concerning Preferred Bank's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 11, which means that the stock price is lower as regards to invested capital than for 11% of comparable investments. On the other hand, Price-to-Sales is less favorable than 87% of alternatives (only 13% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 37% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on Preferred Bank's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022		2023		2024		2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	12		18		18		13
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	61		95		89		65
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	7		11		21		11
DIVIDEND YIELD
DIVIDEND YIELD	55		62		60		63
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	21		38		39		33

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Preferred Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Preferred Bank shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Preferred Bank. Capital Growth has a rank of 79, which means that currently professionals expect the company to grow its invested capital more than 12% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 67 (above 67% of alternative investments). But Sales Growth has only a rank of 10, which means that, currently, professionals expect the company to grow less than 90% of its competitors, and Profit Growth is also low at a rank of 12. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Preferred Bank, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022		2023		2024		2025
REVENUE GROWTH
REVENUE GROWTH	68		6		28		10
PROFIT GROWTH
PROFIT GROWTH	40		87		16		12
CAPITAL GROWTH
CAPITAL GROWTH	82		74		76		79
STOCK RETURNS
STOCK RETURNS	93		63		49		67
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	96		47		35		37

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Preferred Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company Preferred Bank has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Preferred Bank is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Preferred Bank and the other two below average. Leverage is at a rank of 92 meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors.Refinancing is at a rank of 7, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 93% of its competitors. Liquidity is at a rank of 30, meaning that the company generates less profit to service its debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), Preferred Bank has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Preferred Bank are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Preferred Bank and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022		2023		2024		2025
LEVERAGE
LEVERAGE	94		97		93		92
REFINANCING
REFINANCING	5		7		9		7
LIQUIDITY
LIQUIDITY	26		39		56		30
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	43		50		72		27

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Preferred Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022		2023		2024		2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a		89		59		new
OPINIONS CHANGE
OPINIONS CHANGE	23		50		91		new
PRO HOLDINGS
PRO HOLDINGS	24		82		89		new
MARKET PULSE
MARKET PULSE	82		63		30		new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	44		92		77		new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Preferred Bank.
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Free stock analysis by the purely fact based Obermatt Method for Preferred Bank from July 31, 2025.

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