Preferred BankFRA:1IU -2.72%68 Pretax Margin % is 64.04% as of Mar. 2026, which is 1% below its 10-year median of 65.00. GuruFocus rates FRA:1IU with a GF Score™ of 68/100 and a GF Value™ of €75.58. The stock has 5 warning signs investors should review. Among 1,528 Banks companies, Preferred Bank ranks better than 95.68% on this metric.
The historical rank and industry rank for Preferred Bank's Pretax Margin % or its related term are showing as below:
FRA:1IU'
s Pretax Margin % Range Over the Past 10 Years
Min: 53.75 Med: 65 Max: 71.59
Current: 66.89
FRA:1IU's Pretax Margin % is ranked better than 95.68% of 1528
companies
in the Banks industry
Industry Median: 34.665
vs FRA:1IU: 66.89
Preferred Bank (FRA:1IU) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Preferred Bank Pretax Margin % Related Terms
Preferred Bank Pretax Margin % Historical Data
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The historical data trend for Preferred Bank's Pretax 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.
FRA:1IU vs MCB, UVSP, HFWA: Pretax Margin % Comparison
For the Banks - Regional subindustry, Preferred Bank's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Preferred Bank's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Preferred Bank's Pretax 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 (FRA:1IU) has a Pretax Margin % of 64.04% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Preferred Bank and its competitors. This is near median its historical median of 65.00. Over the past decade, Preferred Bank's Pretax Margin % has ranged from 53.75 to 71.59. According to the industry distribution chart, Preferred Bank ranks #66 out of 1528 companies in the Banks industry, placing it in the top 4.3%.
Is Preferred Bank's Pretax Margin % too high?
Preferred Bank's current Pretax Margin % of 64.04% is near median its 10-year median of 65.00. Over the past 10 years, this metric has ranged from a low of 53.75 to a high of 71.59. The Banks industry median Pretax Margin % is 34.67. Preferred Bank's value of 64.04% is 84.7% above this industry median. Based on the distribution chart, Preferred Bank ranks #66 out of 1528 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, reflecting its overall financial health beyond just this single metric.
How does Preferred Bank's Pretax Margin % compare to MCB and UVSP?
According to the Banks industry distribution chart, Preferred Bank ranks #66 out of 1528 companies for Pretax Margin %. This places Preferred Bank in the top 4% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 34.67. Preferred Bank's value of 64.04% is 84.7% above this benchmark. Historically, Preferred Bank's own Pretax Margin % has ranged from 53.75 to 71.59 over the past decade. While the company's 10-year median is 65.00 vs. the industry median of 34.67, 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 Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.67, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Preferred Bank's current Pretax Margin % of 64.04% is 84.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Preferred Bank and its competitors. For the Banks industry, the median Pretax Margin % is 34.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Preferred Bank's current Pretax Margin % is 64.04%, which is near median its own 10-year median of 65.00. 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?
Preferred Bank (FRA:1IU) has a current Pretax Margin % of 64.04%. The stock's GF Value™ is €75.58, compared to a current price of €89.50 — trading 18.4% above its estimated fair value. The current Pretax Margin % is 64.04%, which is near median its 10-year median of 65.00 and 84.7% above the Banks industry median of 34.67. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Preferred Bank (FRA:1IU), the current Pretax Margin % is 64.04% 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 (FRA:1IU) Overvalued in 2026?
Based on GuruFocus' analysis, Preferred Bank stock appears to be overvalued.
The current stock price of €89.50 is trading 18.4% above its estimated GF Value™ of €75.58.
Key valuation signals for FRA:1IU:
Pretax Margin %: 64.04% (near median its 10-year median of 65.00)
GF Value™: €75.58 vs. price of €89.50 (18.4% above fair value)
Industry Position: 84.7% above the Banks median (#66 of 1528)
No single metric tells the full story. See the FRA:1IU 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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