Preferred Bank cash flow to debt ratio of 43.81% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Preferred Bank's free cash flow has increased 1.94% from $163.60M last year to $166.79M, signaling increasing performance

Preferred Bank's debt to equity ratio is 0.48, which means that the company's assets are healthy financed, signaling financial stability.

Preferred Bank's debt has increased relative to shareholder equity from 0.22 last year to 0.48 today, signaling weakened financials

Preferred Bank has a net cash position, so leverage is healthy.

Preferred Bank earns at least as much interest as it pays. Interest obligations are fully covered.

Preferred Bank's profit margin has increased (6.54%) in the last year from 25.11% to 26.75%, signaling increasing performance

Preferred Bank's short-term assets of $861.25M exceed its short-term liabilities of $5.76M

Preferred Bank's return on assets of 1.75% is lower than the 5.00% threshold, indicating inefficient asset utilization

Preferred Bank's return on equity of 17.32%, is higher than 15.00%, indicating good performance

Preferred Bank's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Preferred Bank had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Preferred Bank has positive free cash flow, indicating the company generates cash after capital expenditures

Preferred Bank has a free cash flow yield of 13.37%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Preferred Bank's yearly earnings has increased 2.27% since last year from $130.66M to $133.63M, signaling increasing performance

Preferred Bank's yearly revenue has decreased 4.11% since last year from $520.43M to $499.04M, signaling decreasing performance

ROIC 1.75% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Preferred Bank's 3-year revenue CAGR of 18.30% is positive, indicating growing revenue over the past 3 years

Preferred Bank had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Preferred Bank had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Preferred Bank is undervalued relative to its fair value price of 277.82 based on Discounted Cash Flow model

Preferred Bank has an earnings yield of 10.86%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Preferred Bank is undervalued relative to its fair value price of 143.69 based on EBITDA multiple model

Preferred Bank has an EV/EBITDA ratio of 4.20x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Preferred Bank is undervalued relative to its fair value price of 296.34 based on Earnings Fair Value model

Preferred Bank has a PEG-ratio under 1 which is considered undervalued

Preferred Bank has a price-to-book ratio of 1.57x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Preferred Bank has a price-to-sales ratio of 2.46x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue