Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Riverview Bancorp Inc’s (NASDAQ:RVSB) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Riverview Bancorp
Did RVSB beat its long-term earnings growth trend and its industry?
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to assess different companies on a similar basis, using the latest information. For Riverview Bancorp, its most recent trailing-twelve-month earnings is $9.7M, which compared to the previous year’s figure, has increased by an impressive 50.12%. Since these values are somewhat short-term, I have determined an annualized five-year value for RVSB’s earnings, which stands at $1.9M. This means that, generally, Riverview Bancorp has been able to consistently raise its earnings over the past few years as well.
How has it been able to do this? Let’s take a look at whether it is only because of industry tailwinds, or if Riverview Bancorp has seen some company-specific growth. In the last few years, Riverview Bancorp grew its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Scanning growth from a sector-level, the US thrifts and mortgage finance industry has been growing its average earnings by double-digit 11.49% over the prior year, and 14.84% over the previous five years. This suggests that any tailwind the industry is enjoying, Riverview Bancorp is able to leverage this to its advantage.
What does this mean?
While past data is useful, it 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 Riverview Bancorp to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for RVSB’s future growth? Take a look at our free research report of analyst consensus for RVSB’s outlook.
2. Financial Health: Is RVSB’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 30 September 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.