Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at The First of Long Island Corporation’s (NASDAQ:FLIC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View our latest analysis for First of Long Island
Were FLIC’s earnings stronger than its past performances and the industry?
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 technique enables me to analyze different stocks in a uniform manner using the most relevant data points. For First of Long Island, its latest earnings (trailing twelve month) is US$37.02M, which, relative to the previous year’s figure, has moved up by 14.98%. Given that these figures are somewhat short-term, I have determined an annualized five-year figure for First of Long Island’s earnings, which stands at US$24.93M This shows that, on average, First of Long Island has been able to consistently raise its bottom line over the last few years as well.
What’s enabled this growth? Let’s take a look at whether it is merely owing to an industry uplift, or if First of Long Island has experienced some company-specific growth. Over the last couple of years, First of Long Island increased its bottom line faster than revenue by efficiently controlling its costs. This brought about 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 8.24% over the previous twelve months, and a substantial 10.79% over the past five years. This suggests that whatever uplift the industry is benefiting from, First of Long Island is able to amplify this to its advantage.
What does this mean?
First of Long Island’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research First of Long Island to get a more holistic view of the stock by looking at:
- 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.
- 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.
- 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.