In this article, I will take a look at Bryn Mawr Bank Corporation’s (NASDAQ:BMTC) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, along with how the rest of BMTC’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. See our latest analysis for Bryn Mawr Bank
Did BMTC beat its long-term earnings growth trend and its industry?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method allows me to analyze various companies on a more comparable basis, using the latest information. Bryn Mawr Bank’s most recent earnings is $38.6M, which compared to the prior year’s level, has risen by an impressive 90.52%. Given that these values are somewhat nearsighted, I have determined an annualized five-year value for BMTC’s net income, which stands at $23.8M. This means generally, Bryn Mawr Bank has been able to gradually grow its earnings over the past few years as well.
What’s enabled this growth? Let’s take a look at if it is only owing to industry tailwinds, or if Bryn Mawr Bank has experienced some company-specific growth. Over the past couple of years, Bryn Mawr Bank grew its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the US banks industry has been growing, albeit, at a unexciting single-digit rate of 9.80% in the past twelve months, and 8.99% over the past couple of years. This shows that any tailwind the industry is benefiting from, Bryn Mawr Bank is able to amplify this to its advantage.
What does this mean?
Though Bryn Mawr Bank’s past data is helpful, it is only one aspect of my investment thesis. While Bryn Mawr Bank has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Bryn Mawr Bank to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for BMTC’s future growth? Take a look at our free research report of analyst consensus for BMTC’s outlook.
2. Financial Health: Is BMTC’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.