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Want To Invest In Bank of the Ozarks (NASDAQ:OZRK)? Here’s How It Performed Lately

Heidi Stubbs

Measuring Bank of the Ozarks’s (NASDAQ:OZRK) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess OZRK’s recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements. See our latest analysis for Bank of the Ozarks

Could OZRK beat the long-term trend and outperform its industry?

To account for any quarterly or half-yearly updates, I 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 technique enables me to examine various companies on a more comparable basis, using the most relevant data points. For Bank of the Ozarks, its latest trailing-twelve-month earnings is US$445.85M, which, against last year’s level, has moved up by 45.00%. Since these values may be somewhat nearsighted, I have computed an annualized five-year value for Bank of the Ozarks’s earnings, which stands at US$171.91M This means that, generally, Bank of the Ozarks has been able to consistently grow its bottom line over the past few years as well.

NasdaqGS:OZRK Income Statement Jun 1st 18
NasdaqGS:OZRK Income Statement Jun 1st 18

How has it been able to do this? Well, let’s take a look at if it is only owing to an industry uplift, or if Bank of the Ozarks has seen some company-specific growth. Over the past couple of years, Bank of the Ozarks increased its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Eyeballing growth from a sector-level, the US banks industry has been growing, albeit, at a subdued single-digit rate of 8.24% in the prior twelve months, and a substantial 10.79% over the last five years. This means whatever uplift the industry is enjoying, Bank of the Ozarks is capable of amplifying this to its advantage.

What does this mean?

Though Bank of the Ozarks’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Bank of the Ozarks gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Bank of the Ozarks to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for OZRK’s future growth? Take a look at our free research report of analyst consensus for OZRK’s outlook.

  2. Financial Health: Is OZRK’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 March 2018. 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.