QCR Holdings, Inc. (QCRH) Stock Analysis

Company Overview

QCR Holdings, Inc. operates as a multi-bank holding company offering a comprehensive suite of commercial and consumer banking products alongside trust and asset management services. The firm's deposit portfolio encompasses noninterest-bearing demand, interest-bearing demand, time, and brokered deposits, while its lending and service offerings extend to various commercial and retail sectors. This entity functions within the Financial Services sector, specifically categorized under the Banks - Regional industry, positioning it as a localized lender with a regional footprint rather than a national or global banking giant. The company's financial scale is defined by a market capitalization of $1.40B and annual revenue of $351.46M, supported by an operational workforce of 967 employees. These valuation and revenue figures indicate a mid-sized regional banking institution that has achieved significant profitability relative to its asset base, suggesting a stable position within the competitive landscape of regional financial services.

Financial Health

The company reported revenue of $351.46M and net income of $127.19M over the trailing twelve months, while EBITDA data is not available for this specific reporting period. The substantial gap between the $351.46M in revenue and the $127.19M in net income reveals a highly efficient cost structure where operating expenses are managed to allow a significant portion of top-line income to flow directly to the bottom line. Although free cash flow figures are not disclosed in the current data, the availability of $502.44M in cash on hand suggests a strong liquidity position that provides the company with financial flexibility to meet obligations or pursue strategic initiatives. The margin profile is characterized by a gross margin of 0.0%, an operating margin of 41.3%, and a profit margin of 36.2%, reflecting the typical fee-based and interest income models of banking where cost of goods sold is minimal relative to net interest income. When comparing total cash assets of $502.44M against total debt of $856.65M, the balance sheet appears leveraged, though the debt-to-equity ratio is not provided for specific calculation. The current ratio is not available in the provided metrics, which limits the ability to quantify short-term liquidity strictly via this specific metric. Return on Equity stands at 12.1% and Return on Assets is 1.4%, metrics that reveal management's effectiveness in generating returns from shareholder capital and total assets respectively, with the ROE being particularly notable for a regional bank.

Valuation Assessment

Valuation multiples for QCR Holdings, Inc. include a trailing P/E ratio of 11.14 and a forward P/E of 9.65. The difference between the trailing P/E of 11.14 and the forward P/E of 9.65 implies that the market expects earnings growth in the coming year that will compress the valuation multiple relative to current earnings levels. The price-to-book ratio is 1.25, indicating that the stock trades at a modest premium over its book value, which is common for well-managed regional banks with tangible asset backing. Alternative valuation metrics include a price-to-sales ratio of 4.00 and an EV/EBITDA ratio that is not available due to missing EBITDA data. The stock's price range over the last year has fluctuated between a 52-week high of $96.00 and a 52-week low of $60.83, providing a context for price volatility and support/resistance levels. While the specific current price is not explicitly stated as a static number in the facts, the forward P/E of 9.65 suggests a valuation that may be attractive if earnings growth materializes as anticipated by the market consensus. The beta value is 0.80, which means the stock exhibits lower volatility relative to the broader market, moving less than 1-to-1 with market swings and offering a degree of stability for risk-averse investors.

Growth & Income

Revenue growth over the year is 17.1% while earnings growth is 19.4%, indicating that earnings are growing faster than revenue and implying improved operational efficiency or favorable net interest margin expansion. The company pays a dividend with a yield of 0.5% and maintains a payout ratio of 3.2%, a level that is highly sustainable given the company's robust earnings growth. Since the payout ratio is only 3.2%, the vast majority of earnings are retained within the company, suggesting a strategy focused on reinvesting earnings into growth rather than paying high dividends. The overall growth and income profile is defined by double-digit revenue expansion, accelerating earnings growth, and a conservative yet present dividend policy that rewards income seekers without compromising capital for expansion.