Assessing Riverview Bancorp Inc’s (NASDAQ:RVSB) 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 Riverview Bancorp is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its mortgage industry peers. Check out our latest analysis for Riverview Bancorp
Commentary On RVSB’s Past Performance
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique enables me to examine many different companies on a similar basis, using the most relevant data points. For Riverview Bancorp, its most recent bottom-line (trailing twelve month) is US$10.24M, which, in comparison to the previous year’s figure, has increased by 38.33%. Given that these figures are relatively nearsighted, I have created an annualized five-year value for Riverview Bancorp’s net income, which stands at US$2.33M This shows that, generally, Riverview Bancorp has been able to steadily improve its earnings over the past couple of years as well.
What’s the driver of this growth? Let’s see if it is merely because of industry tailwinds, or if Riverview Bancorp has experienced some company-specific growth. Over the last few years, Riverview Bancorp grew its bottom line faster than revenue by efficiently controlling its costs. This has caused a margin expansion and profitability over time. Viewing growth from a sector-level, the US mortgage industry has been growing, albeit, at a unexciting single-digit rate of 8.64% over the prior twelve months, and a substantial 14.14% over the past five years. This means any tailwind the industry is profiting from, Riverview Bancorp is able to leverage this to its advantage.
What does this mean?
Though Riverview Bancorp’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Riverview Bancorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Riverview Bancorp to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for RVSB’s future growth? Take a look at our free research report of analyst consensus for RVSB’s outlook.
- Financial Health: Is RVSB’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.
- 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 trailing twelve months from 31 March 2018. 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.