Analyzing CNB Financial Corporation’s (NASDAQ:CCNE) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess CCNE’s recent performance announced on 30 September 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for CCNE

How Well Did CCNE Perform?

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 allows me to analyze many different companies on a similar basis, using new information. For CNB Financial, the most recent bottom-line is $25M, which, against the prior year’s level, has risen by 21.25%. Given that these figures may be somewhat short-term thinking, I’ve computed an annualized five-year figure for CCNE’s earnings, which stands at $19M. This shows that, on average, CNB Financial has been able to consistently improve its net income over the last couple of years as well.

How has it been able to do this? Let’s see whether it is only because of an industry uplift, or if CNB Financial has seen some company-specific growth. The hike in earnings seems to be supported by a substantial top-line increase overtaking its growth rate of costs. Though this brought about a margin contraction, it has made CNB Financial more profitable. Looking at growth from a sector-level, the US banks industry has been growing its average earnings by double-digit 12.54% over the past twelve months, and a more subdued 9.71% over the previous few years. This shows that whatever uplift the industry is gaining from, CNB Financial is capable of leveraging 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? I suggest you continue to research CNB Financial to get a more holistic view of the stock by looking at:

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

2. Financial Health: Is CCNE’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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.