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A diverse portfolio of stocks will always have winners and losers. Of course, in an ideal world, all your stocks would beat the market. One such company is 1895 Bancorp of Wisconsin, Inc. (NASDAQ:BCOW), which saw its share price increase 25% in the last year, slightly above the market return of around 23% (not including dividends). Zooming out, the stock is actually down 16% in the last three years.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
See our latest analysis for 1895 Bancorp of Wisconsin
Given that 1895 Bancorp of Wisconsin didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
1895 Bancorp of Wisconsin actually shrunk its revenue over the last year, with a reduction of 11%. Despite the lack of revenue growth, the stock has returned a solid 25% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
1895 Bancorp of Wisconsin's TSR for the year was broadly in line with the market average, at 25%. That gain looks pretty satisfying, and it is even better than the five-year TSR of 2% per year. It is possible that management foresight will bring growth well into the future, even if the share price slows down. It's always interesting to track share price performance over the longer term. But to understand 1895 Bancorp of Wisconsin better, we need to consider many other factors. Take risks, for example - 1895 Bancorp of Wisconsin has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.