The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the First Seacoast Bancorp, Inc. (NASDAQ:FSEA) share price is up 60% in the last five years, that’s less than the market return. On a brighter note, more newer shareholders are probably rather content with the 35% share price gain over twelve months.
Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.
Given that First Seacoast Bancorp 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last half decade First Seacoast Bancorp’s revenue has actually been trending down at about 3.6% per year. The stock is only up 10% for each year during the period. That’s pretty decent given the top line decline, and lack of profits. We’d keep an eye on changes in the trend – there may be an opportunity if the company returns to growth.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It’s always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on First Seacoast Bancorp’s earnings, revenue and cash flow.
It’s nice to see that First Seacoast Bancorp shareholders have received a total shareholder return of 35% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 10% per year), it would seem that the stock’s performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Take risks, for example – First Seacoast Bancorp has 2 warning signs (and 1 which is a bit unpleasant) we think 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.
