Measuring QCR Holdings Inc’s (NASDAQ:QCRH) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess QCRH’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. View our latest analysis for QCR Holdings
Did QCRH’s recent earnings growth beat the long-term trend and the industry?
I like to use data from the most recent 12 months, 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 technique enables me to analyze various companies in a uniform manner using new information. For QCR Holdings, its latest earnings (trailing twelve month) is US$35.71M, which, in comparison to the prior year’s level, has increased by 28.97%. Given that these figures are relatively myopic, I’ve determined an annualized five-year figure for QCRH’s net income, which stands at US$15.29M This means that, generally, QCR Holdings has been able to consistently grow its net income over the last couple of years as well.
How has it been able to do this? Let’s take a look at whether it is solely owing to an industry uplift, or if QCR Holdings has experienced some company-specific growth. Over the last couple of years, QCR Holdings grew its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Inspecting growth from a sector-level, the US banks industry has been growing, albeit, at a subdued single-digit rate of 3.80% over the prior year, and 8.38% over the past half a decade. This means any recent headwind the industry is enduring, QCR Holdings is relatively better-cushioned than its peers.
What does this mean?
QCR Holdings’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 QCR Holdings to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for QCRH’s future growth? Take a look at our free research report of analyst consensus for QCRH’s outlook.
- 2. Financial Health: Is QCRH’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 trailing twelve months from 31 December 2017. 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.