Assessing QCR Holdings Inc’s (NASDAQ:QCRH) 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 QCRH’s latest performance announced on 30 September 2017 and evaluate these figures to its historical trend and industry movements. Check out our latest analysis for QCR Holdings
Were QCRH’s earnings stronger than its past performances and the industry?
To account for any quarterly or half-yearly updates, I 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 enables me to examine many different companies on a similar basis, using the most relevant data points. QCR Holdings’s latest earnings is $34M, which, relative to the prior year’s level, has increased by 32.35%. Given that these values are relatively short-term, I have created an annualized five-year value for QCRH’s earnings, which stands at $14M. This means that, on average, QCR Holdings has been able to steadily grow its net income over the past couple of years as well.
What’s enabled this growth? Well, let’s take a look at if it is merely due to an industry uplift, or if QCR Holdings has experienced some company-specific growth. In the last few years, QCR Holdings increased its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the US banks industry has been growing its average earnings by double-digit 12.54% over the past year, and a more subdued 9.71% over the previous few years. This means that whatever tailwind the industry is deriving benefit from, QCR Holdings is able to amplify this to its advantage.
What does this mean?
Though QCR Holdings’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as QCR Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research QCR Holdings to get a more holistic view 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 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.