How Does CVB Financial Corp’s (NASDAQ:CVBF) EPS Growth Stack Up Against Industry Performance?
Assessing CVB Financial Corp’s (NASDAQ:CVBF) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess CVBF’s latest performance announced on 30 September 2017 and evaluate these figures to its historical trend and industry movements. See our latest analysis for CVB Financial
How Well Did CVBF Perform?
I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to assess many different companies in a uniform manner using the most relevant data points. CVB Financial’s most recent twelve-month earnings is $113.2M, which, in comparison to the prior year’s figure, has jumped up by 10.42%. Given that these figures may be relatively nearsighted, I’ve determined an annualized five-year figure for CVBF’s net income, which stands at $91.0M. This suggests that, on average, CVB Financial has been able to steadily grow its earnings over the past couple of years as well.
How has it been able to do this? Well, let’s take a look at whether it is only owing to industry tailwinds, or if CVB Financial has seen some company-specific growth. In the last few years, CVB Financial expanded its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Scanning growth from a sector-level, the US banks industry has been growing, albeit, at a muted single-digit rate of 9.80% in the past year, and 8.99% over the past couple of years. This suggests that whatever tailwind the industry is gaining from, CVB Financial is capable of leveraging this to its advantage.
What does this mean?
CVB Financial’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as CVB Financial gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research CVB Financial to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CVBF’s future growth? Take a look at our free research report of analyst consensus for CVBF’s outlook.
2. Financial Health: Is CVBF’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.
