Assessing Two River Bancorp’s (NASDAQ:TRCB) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Two River Bancorp is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its banks industry peers. Check out our latest analysis for Two River Bancorp
Did TRCB beat its long-term earnings growth trend and its industry?
I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to analyze different stocks in a uniform manner using the latest information. “For Two River Bancorp, its “, most recent bottom-line is $8.7M, which, in comparison to last year’s figure, has climbed up by 11.93%. Since these values may be fairly nearsighted, I have created an annualized five-year figure for Two River Bancorp’s net income, which stands at $5.5M. This means generally, Two River Bancorp has been able to gradually grow its bottom line over the past couple of years as well.
What’s enabled this growth? Let’s take a look at whether it is solely owing to industry tailwinds, or if Two River Bancorp has seen some company-specific growth. Over the past couple of years, Two River Bancorp expanded its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Looking at growth from a sector-level, the US banks industry has been growing, albeit, at a unexciting single-digit rate of 9.80% over the previous twelve months, and 8.93% over the previous few years. This means any tailwind the industry is gaining from, Two River Bancorp is able to amplify this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Two River Bancorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Two River Bancorp to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for TRCB’s future growth? Take a look at our free research report of analyst consensus for TRCB’s outlook.
2. Financial Health: Is TRCB’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.