Analyzing The First of Long Island Corporation’s (NASDAQ:FLIC) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess FLIC’s recent performance announced on 30 September 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for FLIC
Could FLIC beat the long-term trend and outperform its industry?
I prefer to 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 enables me to examine different companies in a uniform manner using the most relevant data points. For First of Long Island, the most recent earnings is $34.9M, which compared to the prior year’s level, has jumped up by 16.95%. Since these values may be relatively nearsighted, I’ve computed an annualized five-year figure for First of Long Island’s earnings, which stands at $23.7M. This means that, on average, First of Long Island has been able to gradually grow its profits over the past few years as well.
What’s the driver of this growth? Let’s take a look at whether it is only because of industry tailwinds, or if First of Long Island has experienced some company-specific growth. Over the last few years, First of Long Island expanded its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Inspecting growth from a sector-level, the US banks industry has been growing its average earnings by double-digit 10.09% in the prior year, and a more subdued 9.05% over the previous five years. This means whatever tailwind the industry is gaining from, First of Long Island is able to leverage this to its advantage.
What does this mean?
Though First of Long Island’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as First of Long Island gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research First of Long Island to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for FLIC’s future growth? Take a look at our free research report of analyst consensus for FLIC’s outlook.
2. Financial Health: Is FLIC’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.