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1895 Bancorp of Wisconsin (NASDAQ:BCOW) shareholders have earned a 7.7% CAGR over the last three years

You can receive the average market return by buying a low-cost index fund. But if you pick the right individual stocks, you could make more than that. For example, the 1895 Bancorp of Wisconsin, Inc. (NASDAQ:BCOW) share price is up 25% in the last three years, slightly above the market return. In contrast, the stock is actually down 7.4% in the last year, suggesting a lack of positive momentum.

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 expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

1895 Bancorp of Wisconsin actually saw its revenue drop by 1.2% per year over three years. Despite the lack of revenue growth, the stock has returned 8%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at 1895 Bancorp of Wisconsin's financial health with this free report on its balance sheet.

A Different Perspective

1895 Bancorp of Wisconsin shareholders may not have made money over the last year, but their total loss of 7.4% isn't as bad as the market loss of around 7.4%. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over three years. It's possible that the recent share price decline has more to do with the negative broader market returns than any company specific development. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for 1895 Bancorp of Wisconsin you should be aware of.

But note: 1895 Bancorp of Wisconsin may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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