Assessing Manhattan Bridge Capital Inc’s (NASDAQ:LOAN) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not 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 30 September 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Manhattan Bridge Capital
How Did LOAN’s Recent Performance Stack Up Against Its Past?
I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to examine many different companies on a more comparable basis, using new information. Manhattan Bridge Capital’s latest earnings is $3.3M, which, against the prior year’s level, has risen by 21.18%. Since these values may be fairly short-term thinking, I have computed an annualized five-year figure for Manhattan Bridge Capital’s earnings, which stands at $1.3M. This suggests that, generally, Manhattan Bridge Capital has been able to steadily improve its bottom line over the last couple of years as well.
What’s the driver of this growth? Let’s take a look at if it is merely owing to an industry uplift, or if Manhattan Bridge Capital has experienced some company-specific growth. In the past couple of years, Manhattan Bridge Capital increased 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 mortgage reits industry has been growing its average earnings by double-digit 27.80% over the prior year, . This is a turnaround from a volatile drop of -2.55% in the past couple of years. This suggests that, in the recent industry expansion, Manhattan Bridge Capital has not been able to gain as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Manhattan Bridge Capital gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Manhattan Bridge Capital to get a better picture 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 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.