When Peoples Bancorp Inc (NASDAQ:PEBO) announced its most recent earnings (31 December 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Peoples Bancorp has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see PEBO has performed. See our latest analysis for Peoples Bancorp
How Well Did PEBO Perform?
I prefer to use 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 method allows me to analyze different companies on a more comparable basis, using the most relevant data points. For Peoples Bancorp, its latest trailing-twelve-month earnings is $38.5M, which compared to last year’s level, has jumped up by 24.04%. Since these figures may be fairly nearsighted, I’ve created an annualized five-year figure for PEBO’s earnings, which stands at $18.8M. This shows that, generally, Peoples Bancorp has been able to steadily grow 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 only due to an industry uplift, or if Peoples Bancorp has experienced some company-specific growth. In the past few years, Peoples Bancorp expanded its bottom line faster than revenue by successfully 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 muted single-digit rate of 4.82% over the prior year, and 8.57% over the previous five years. This shows that whatever near-term headwind the industry is experiencing, the impact on Peoples Bancorp has been softer relative to its peers.
What does this mean?
Peoples Bancorp’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Peoples Bancorp has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Peoples Bancorp to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for PEBO’s future growth? Take a look at our free research report of analyst consensus for PEBO’s outlook.
- 2. Financial Health: Is PEBO’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.