Assessing BCB Bancorp Inc’s (NASDAQ:BCBP) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess BCBP’s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. View our latest analysis for BCB Bancorp
Did BCBP beat its long-term earnings growth trend and its industry?
For the purpose of this commentary, I like 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 method enables me to examine many different companies on a more comparable basis, using new information. For BCB Bancorp, its latest earnings (trailing twelve month) is US$9.37M, which, relative to the prior year’s figure, has increased by 32.56%. Given that these values are relatively short-term thinking, I’ve computed an annualized five-year figure for BCB Bancorp’s earnings, which stands at US$6.23M This suggests that, on average, BCB Bancorp has been able to increasingly grow its net income over the last couple of years as well.
How has it been able to do this? Let’s take a look at whether it is merely a result of an industry uplift, or if BCB Bancorp has seen some company-specific growth. The rise in earnings seems to be supported by a strong top-line increase beating its growth rate of expenses. Though this has led to a margin contraction, it has made BCB Bancorp more profitable. Viewing growth from a sector-level, the US banks industry has been growing, albeit, at a unexciting single-digit rate of 3.32% in the previous twelve months, and 8.10% over the past five. This suggests that whatever recent headwind the industry is facing, BCB Bancorp is less exposed compared to its 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 BCB Bancorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research BCB Bancorp to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for BCBP’s future growth? Take a look at our free research report of analyst consensus for BCBP’s outlook.
- 2. Financial Health: Is BCBP’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.