Assessing Manhattan Bridge Capital Inc’s (NASDAQ:LOAN) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess LOAN’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. See our latest analysis for Manhattan Bridge Capital
Were LOAN’s earnings stronger than its past performances and the industry?
I prefer to use the ‘latest twelve-month’ data, 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 blend allows me to assess various companies on a more comparable basis, using new information. For Manhattan Bridge Capital, its latest earnings (trailing twelve month) is US$3.44M, which, relative to the previous year’s level, has moved up by 21.21%. Given that these figures may be fairly short-term, I have computed an annualized five-year figure for LOAN’s earnings, which stands at US$1.42M This shows that, on average, Manhattan Bridge Capital has been able to steadily grow its net income over the past few years as well.
What’s the driver of this growth? Let’s see if it is merely because of an industry uplift, or if Manhattan Bridge Capital has experienced some company-specific growth. In the last couple of years, Manhattan Bridge Capital grew its bottom line faster than revenue by effectively controlling its costs. This resulted in a margin expansion and profitability over time. Inspecting growth from a sector-level, the US mortgage reits industry has been growing, albeit, at a subdued single-digit rate of 3.19% in the past year, . This is a change from a volatile drop of -2.28% in the last couple of years. This shows that any near-term headwind the industry is enduring, Manhattan Bridge Capital is relatively better-cushioned than its peers.
What does this mean?
Manhattan Bridge Capital’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 Manhattan Bridge Capital to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for LOAN’s future growth? Take a look at our free research report of analyst consensus for LOAN’s outlook.
- 2. Financial Health: Is LOAN’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.