Measuring Colony Bankcorp Inc’s (NASDAQ:CBAN) track record of past performance is a valuable exercise for investors. It allows 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 CBAN’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. Check out our latest analysis for Colony Bankcorp
How CBAN fared against its long-term earnings performance and its industry
I look at data from the most recent 12 months, 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 allows me to examine different companies in a uniform manner using new information. For Colony Bankcorp, its most recent trailing-twelve-month earnings is US$7.54M, which, against the previous year’s figure, has risen by a fairly subdued 5.02%. Since these figures are relatively myopic, I’ve computed an annualized five-year figure for Colony Bankcorp’s net income, which stands at US$4.00M This means that, generally, Colony Bankcorp has been able to gradually improve its net income over the last few years as well.
How has it been able to do this? Well, let’s take a look at if it is solely attributable to an industry uplift, or if Colony Bankcorp has experienced some company-specific growth. In the past few years, Colony Bankcorp increased its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Viewing growth from a sector-level, the US banks industry has been growing, albeit, at a unexciting single-digit rate of 4.18% over the past twelve months, and 8.53% over the past half a decade. This suggests that whatever near-term headwind the industry is enduring, Colony Bankcorp is relatively better-cushioned than its peers.
What does this mean?
Though Colony Bankcorp’s past data is helpful, it is only one aspect of my investment thesis. 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 Colony Bankcorp to get a better picture of the stock by looking at:
- 1. Financial Health: Is CBAN’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.
- 2. Valuation: What is CBAN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CBAN is currently mispriced by the market.
- 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.