Preferred Story

PFBC -- USA Stock

USD 58.49 0.49 0.83%

Macroaxis Story

While many traders are getting carried away by overanalyzing financial services space, it is reasonable to go over Preferred Bank. Why are we still confident in anticipation of a complete recovery. Is the entity valuation justified? I am going to cover the stock perspective on valuation to give you a better outlook on taking a position in it.

Published over a month ago

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Preferred Bank currently holds 118.41 M in liabilities with Debt to Equity (D/E) ratio of 0.16, which may suggest Preferred Bank is not taking enough advantage from borrowing. Our recommendation tool can be used to complement Preferred Bank trade recommendations provided by experts. It analyzes the firm's potential to grow against your specific risk preferences and investment horizon.

We determine the current worth of Preferred Bank LA using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Preferred Bank LA based exclusively on its fundamental and basic technical indicators. By analyzing Preferred Bank's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Preferred Bank's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Preferred Bank. We calculate exposure to Preferred Bank's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Preferred Bank's related companies.

Preferred Bank LA Investment Alerts

Preferred investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Preferred Bank LA performance across your portfolios.Please check all investment alerts for Preferred

Preferred Bank Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Preferred value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Preferred Bank competition to find correlations between indicators driving the intrinsic value of Preferred.

How Preferred utilizes its cash?

To perform a cash flow analysis of Preferred Bank, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Preferred Bank is receiving and how much cash it distributes out in a given period. The Preferred Bank cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Preferred Bank Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 78.08 Million

What is driving Preferred Bank Investor Appetite?

The entity reported the previous year's revenue of 147.13 M. Net Income was 67.89 M with profit before overhead, payroll, taxes, and interest of 162.95 M.

Preferred Bank Net Income Per Employee is somewhat stable at the moment. Preferred Bank Calculated Tax Rate is increasing over the last 8 years. The current value of Preferred Bank Calculated Tax Rate is 28.79. Additionally, Preferred Bank Accrued Expenses Turnover is decreasing over the last 8 years. Preferred Bank Net Income Per Employee is increasing over the last 8 years. Preferred Bank Calculated Tax Rate is increasing over the last 8 years. The previous year's value of Preferred Bank Calculated Tax Rate was 28.79. Additionally, Preferred Bank Accrued Expenses Turnover is somewhat stable at the moment.

Another 3 percent rise for Preferred Bank

Preferred Bank current downside deviation builds up over 2.27. As of the 24th of January, Preferred Bank holds the Risk Adjusted Performance of 0.2352, coefficient of variation of 423.22, and Semi Deviation of 1.83. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Preferred Bank, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Preferred Bank, which can be compared to its competitors. Please check Preferred Bank coefficient of variation, jensen alpha, potential upside, as well as the relationship between the variance and maximum drawdown to decide if Preferred Bank is priced some-what accurately, providing market reflects its current price of 51.04 per share. Given that Preferred Bank has jensen alpha of 0.6982, we recommend you to check out Preferred Bank's recent market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Preferred Bank

Whereas few other entities under the banks?regional industry are still a bit expensive, Preferred Bank may offer a potential longer-term growth to investors. In closing, as of the 24th of January 2021, we believe that at this point, Preferred Bank is very steady with below average chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our actual 30 days buy-or-sell advice on the company is Hold.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Preferred Bank LA. Please refer to our Terms of Use for any information regarding our disclosure principles.

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