Stock Analysis

While shareholders of 1895 Bancorp of Wisconsin (NASDAQ:BCOW) are in the black over 3 years, those who bought a week ago aren't so fortunate

Source: Shutterstock

1895 Bancorp of Wisconsin, Inc. (NASDAQ:BCOW) shareholders have seen the share price descend 16% over the month. But at least the stock is up over the last three years. However, it's unlikely many shareholders are elated with the share price gain of 30% over that time, given the rising market.

Although 1895 Bancorp of Wisconsin has shed US$9.7m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for 1895 Bancorp of Wisconsin

Because 1895 Bancorp of Wisconsin made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

1895 Bancorp of Wisconsin actually saw its revenue drop by 1.2% per year over three years. The falling revenue is arguably somewhat reflected in the lacklustre return of 9% per year over three years, which falls short of the market return. Profit focussed investors would generally avoid a company with falling revenue and zero profits, since it's hard to imagine when profit might come.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NasdaqCM:BCOW Earnings and Revenue Growth March 14th 2023

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 shareholders are down 26% for the year, falling short of the market return. The market shed around 7.3%, no doubt weighing on the stock price. Investors are up over three years, booking 9% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for 1895 Bancorp of Wisconsin you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

Valuation is complex, but we're helping make it simple.

Find out whether 1895 Bancorp of Wisconsin is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis