Preferred BankPFBC +1.38%68 Net Margin % is 44.73% as of Mar. 2026, which is 3% below its 10-year median of 45.94. GuruFocus rates PFBC with a GF Score™ of 68/100 and a GF Value™ of $90.50 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,527 Banks companies, Preferred Bank ranks better than 91.75% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Preferred Bank's Net Income for the
three
months ended in Mar. 2026 was $31.1 Mil. Preferred Bank's Revenue for the
three
months ended in Mar. 2026 was $69.6 Mil. Therefore, Preferred Bank's net margin for the quarter that ended in Mar. 2026 was 44.73%.
The historical rank and industry rank for Preferred Bank's Net Margin % or its related term are showing as below:
PFBC'
s Net Margin % Range Over the Past 10 Years
Min: 32.15 Med: 45.94 Max: 51.18
Current: 47.06
PFBC's Net Margin % is ranked better than 91.75% of 1527
companies
in the Banks industry
Industry Median: 26.95
vs PFBC: 47.06
Preferred Bank (NAS:PFBC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Preferred Bank Net Margin % Related Terms
Preferred Bank Net Margin % Historical Data
* Premium members only.
The historical data trend for Preferred Bank's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Preferred Bank's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Preferred Bank Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Preferred Bank's Net Margin % distribution charts can be found below:
* The bar in red indicates where Preferred Bank's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Preferred Bank (PFBC) has a Net Margin % of 44.73% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Preferred Bank and its competitors. This is near median its historical median of 45.94. Over the past decade, Preferred Bank's Net Margin % has ranged from 32.15 to 51.18. According to the industry distribution chart, Preferred Bank ranks #126 out of 1527 companies in the Banks industry, placing it in the top 8.3%.
Is Preferred Bank's Net Margin % too high?
Preferred Bank's current Net Margin % of 44.73% is near median its 10-year median of 45.94. Over the past 10 years, this metric has ranged from a low of 32.15 to a high of 51.18. The Banks industry median Net Margin % is 26.95. Preferred Bank's value of 44.73% is 66% above this industry median. Based on the distribution chart, Preferred Bank ranks #126 out of 1527 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Preferred Bank has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Preferred Bank's Net Margin % compare to HFWA and AGBK?
According to the Banks industry distribution chart, Preferred Bank ranks #126 out of 1527 companies for Net Margin %. This places Preferred Bank in the top 8% of its industry — outperforming the majority of peers. The industry median Net Margin % is 26.95. Preferred Bank's value of 44.73% is 66% above this benchmark. Historically, Preferred Bank's own Net Margin % has ranged from 32.15 to 51.18 over the past decade. While the company's 10-year median is 45.94 vs. the industry median of 26.95, Preferred Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 26.95, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Preferred Bank's current Net Margin % of 44.73% is 66% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Preferred Bank and its competitors. For the Banks industry, the median Net Margin % is 26.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Preferred Bank's current Net Margin % is 44.73%, which is near median its own 10-year median of 45.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preferred Bank stock overvalued right now?
Based on GuruFocus' analysis, Preferred Bank (PFBC) is currently considered Modestly Overvalued. The stock's GF Value™ is $90.50, compared to a current price of $103.25 — trading 14.1% above its estimated fair value. The current Net Margin % is 44.73%, which is near median its 10-year median of 45.94 and 66% above the Banks industry median of 26.95. Preferred Bank's overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Preferred Bank (PFBC), the current Net Margin % is 44.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Preferred Bank (PFBC) Overvalued in 2026?
Based on GuruFocus' analysis, Preferred Bank stock appears to be overvalued.
The current stock price of $103.25 is trading 14.1% above its estimated GF Value™ of $90.50.
GuruFocus considers Preferred Bank to be Modestly Overvalued.
Key valuation signals for PFBC:
Net Margin %: 44.73% (near median its 10-year median of 45.94)
GF Value™: $90.50 vs. price of $103.25 (14.1% above fair value)
Industry Position: 66% above the Banks median (#126 of 1527)
No single metric tells the full story. See the PFBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking, which include Checking accounts, Savings accounts, CDs, Loans and Credit, Electronic banking, and Treasury Management. It provides personalized deposit services, real estate finance, commercial loans, and trade finance credit facilities to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high-net-worth individuals.
68GF Score
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