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QCR Holdings (QCRH)
NASDAQ:QCRH
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QCR Holdings
(NASDAQ:QCRH)
71Outperform
QCR Holdings (QCRH) vs. S&P 500 (SPY)
Market Cap
$1.09B
Dividend Yield0.37%
Average Volume (3M)90.40K
Price to Earnings (P/E)9.6
Beta (1Y)0.80
Revenue Growth4.17%
EPS Growth-0.91%
CountryUS
Employees972
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.65
Shares Outstanding16,919,285
10 Day Avg. Volume89,898
30 Day Avg. Volume90,396
Financial Highlights & Ratios
PEG Ratio2.79
Price to Book (P/B)N/A
Price to Sales (P/S)3.67
Price to Cash Flow (P/CF)1.70
P/FCF Ratio1.30
Enterprise Value/Market Cap1.42
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit25.83K
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$85.33Price Target Upside33.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
QCR Holdings Business Overview & Revenue Model
Company DescriptionQCR Holdings, Inc. (QCRH) is a multi-bank holding company based in the United States. It provides a range of financial services through its subsidiaries, which include community banks and specialized financial service companies. The company operates primarily in the Midwest, focusing on commercial and retail banking, treasury management, and wealth management services. Its core offerings are designed to cater to both individual and business clients, ensuring personalized financial solutions across its regional markets.
How the Company Makes MoneyQCR Holdings makes money through a diversified revenue model centered around its banking and financial service operations. The primary revenue streams include interest income from loans and leases provided to commercial and retail customers, and fees generated from deposit accounts, wealth management, and treasury services. The company also earns income from investment securities and gains from the sale of loans. QCR Holdings leverages its local presence and community-focused approach to establish strong client relationships, which are crucial for sustaining and growing its revenue base. Partnerships with local businesses and community initiatives also play a significant role in the company's earnings by driving both deposit growth and loan demand.
QCR Holdings Financial Statement Overview
Summary
QCR Holdings shows strong revenue and profit growth, improved leverage, and robust cash flow generation. Despite incomplete 2024 data, historical trends suggest stability. The balance sheet reflects financial health, but the sharp drop in 2024 debt needs scrutiny. Overall, a solid financial position with room for cautious optimism.Income Statement
QCR Holdings has demonstrated strong revenue growth over the years, with a notable increase from $218.1 million in 2019 to $343.2 million in 2023. The net profit margin has remained healthy, reaching 33% in 2023, which indicates efficient cost management. However, the EBIT margin was not available for 2024 due to zero EBIT, which raises concerns about operating profitability. The 2024 data suggests a significant drop in total revenue, but this is likely due to incomplete data for that year.72
Positive
Balance Sheet
The company's debt-to-equity ratio has improved from 0.50 in 2019 to 0.18 in 2023, indicating reduced leverage and increased financial stability. The return on equity (ROE) is strong, at 12.81% in 2023, showing effective use of equity capital. The equity ratio has also improved, reflecting a solid capital structure. However, there is a sharp decline in total debt in 2024, which needs further verification for sustainability.65
Positive
Cash Flow
QCR Holdings' operating cash flow has grown consistently, with significant increases from $76.5 million in 2019 to $376.3 million in 2023. The free cash flow to net income ratio is impressive at 3.92 in 2023, indicating strong cash generation relative to net income. The company has managed to maintain positive free cash flow despite fluctuating capital expenditures.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 59.78K | 343.21M | 304.16M | 271.84M | 275.16M | Gross Profit |
| 59.78K | 337.15M | 304.16M | 271.84M | 275.16M | EBIT |
| -383.88M | 126.83M | 113.55M | 121.47M | 73.29M | EBITDA |
| 0.00 | 138.28M | 124.06M | 128.86M | 80.77M | Net Income Common Stockholders |
| 113.85M | 113.56M | 99.07M | 98.91M | 60.58M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 372.84M | 132.57M | 468.04M | 450.61M | 509.89M | Total Assets |
| 9.03B | 8.54B | 7.95B | 6.10B | 5.71B | Total Debt |
| 1.80M | 716.79M | 696.26M | 167.00M | 171.68M | Net Debt |
| -89.93M | 514.75M | 569.18M | 54.22M | 23.76M | Total Liabilities |
| 8.03B | 7.65B | 696.26M | 167.00M | 171.68M | Stockholders Equity |
| 997.39M | 886.60M | 772.72M | 677.01M | 593.79M |
| Cash Flow | Free Cash Flow | |||
| 444.54M | 361.38M | 85.44M | 74.24M | 107.91M | Operating Cash Flow |
| 444.54M | 376.32M | 118.70M | 88.22M | 112.18M | Investing Cash Flow |
| -845.23M | -749.27M | -634.69M | -411.77M | -704.48M | Financing Cash Flow |
| 395.30M | 410.35M | 538.23M | 299.71M | 577.38M |
QCR Holdings Technical Analysis
Negative
64.16
Price Trends
71.13
Negative
76.57
Negative
76.61
Negative
Market Momentum
-1.77
Negative
37.76
Neutral
36.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QCRH, the sentiment is Negative. The current price of 64.16 is below the 20-day moving average (MA) of 66.70, below the 50-day MA of 71.13, and below the 200-day MA of 76.61, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QCRH.
QCR Holdings Risk Analysis
QCR Holdings disclosed 43 risk factors in its most recent earnings report. QCR Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
QCR Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.16B | 11.16 | 11.98% | 2.50% | 12.38% | 26.96% | |
73 Outperform | $1.14B | 9.50 | 11.08% | 1.44% | 7.68% | -1.13% | |
71 Outperform | $1.09B | 9.65 | 11.70% | 0.37% | 4.17% | -0.91% | |
66 Neutral | $1.12B | 39.88 | 2.47% | 3.90% | -2.81% | -64.23% | |
66 Neutral | $1.21B | 20.45 | 6.10% | 0.45% | 12.30% | -41.81% | |
63 Neutral | $1.07B | 16.23 | 9.69% | 2.92% | 17.98% | 399.48% | |
63 Neutral | $12.31B | 9.55 | 7.88% | 79.24% | 12.71% | -4.71% |
* Financial Sector Average
Performance Comparison
QCRH
QCR Holdings
64.16
8.85
16.00%
BHLB
Berkshire Hills
24.68
3.31
15.49%
DCOM
Dime Community Bancshares
25.62
7.54
41.70%
RBCAA
Republic Bancorp
67.01
17.11
34.29%
LOB
Live Oak Bancshares
26.59
-6.78
-20.32%
BY
Byline Bancorp
25.61
4.20
19.62%
QCR Holdings Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: -5.67%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook with robust deposit and wealth management growth offset by macroeconomic uncertainties impacting the LIHTC lending business and loan growth projections. Strong asset quality and capital levels were positive, but the suspension of full-year loan growth guidance and challenges in net interest income were notable concerns.Q1-2025 Updates
Positive Updates
Robust Deposit Growth
Total annualized core deposit growth was at a robust 20%, significantly enhancing liquidity and reducing wholesale funding levels.
Wealth Management Growth
The wealth management business generated annualized revenue growth of 14% for the quarter, driven by growth in new client accounts and assets under management.
Strong Asset Quality
Non-performing assets as a percentage of total assets increased slightly by three basis points but remained well below historic averages. Total criticized loan balances decreased by 28 basis points, marking the lowest criticized ratio in five years.
Improved Capital Levels
Capital levels were strong with an increase in regulatory capital ratios driven by solid earnings and a smaller increase in total risk-weighted assets.
Negative Updates
Macroeconomic Uncertainty Impact
Macroeconomic uncertainty affected the LIHTC lending business, causing delays in projects and resulting in lower capital markets revenue in the first quarter.
Loan Growth Guidance Suspension
Due to heightened uncertainty, the company suspended its full-year loan growth guidance and provided a more conservative projection for the second quarter.
Net Interest Income Challenges
Despite a slight increase when adjusting for fewer days, net interest income faced headwinds related to the expiration of interest rate caps.
Company Guidance
During the first quarter of 2025, QCR Holdings reported net income of $26 million and adjusted net income of the same amount, with earnings per diluted share at $1.52, or $1.53 on an adjusted basis. The quarter was marked by a one basis point increase in the adjusted net interest margin on a tax-equivalent basis, despite a four basis point dilution from expired interest rate caps. The company experienced annualized loan growth of 4%, excluding the planned runoff of M2 equipment finance loans, and achieved robust core deposit growth of 20% annualized. Non-interest income totaled $17 million, with $7 million from capital markets revenue, although macroeconomic uncertainties affected the LIHTC lending business. Wealth management saw a 14% annualized revenue increase. Non-interest expenses decreased by 13% to $47 million, primarily due to lower variable compensation linked to reduced capital markets revenue. Asset quality remained strong, with a slight increase in non-performing assets by three basis points but a decrease in criticized loan balances by 28 basis points. The provision for credit losses was $4 million, down by $915,000 from the previous quarter. The company is targeting a 4% to 6% annualized loan growth rate for the second quarter of 2025, with plans to continue utilizing securitizations as a strategic tool as they approach $10 billion in assets.QCR Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
QCR Holdings Highlights Strong Financial Performance
Positive
Apr 25, 2025
On April 25, 2025, QCR Holdings, Inc. released a presentation on its website highlighting its distinct operating model and strong financial performance. The company emphasized its local charter autonomy, which attracts top bankers, and its leading market position in growing mid-sized metros. QCR Holdings reported a 1.45% adjusted return on average assets over the past five years and significant growth in tangible book value and earnings per share. The company derives a substantial portion of its revenue from noninterest income, and its disciplined credit culture and experienced management team contribute to its success. The announcement underscores QCR Holdings’ ability to deliver shareholder value and maintain a strong market position.
Spark’s Take on QCRH Stock
According to Spark, TipRanks’ AI Analyst, QCRH is a Outperform.
QCR Holdings demonstrates strong financial performance with consistent revenue growth and robust cash flows. The stock is currently undervalued, presenting an opportunity for investors, although technical indicators suggest a bearish trend. While the company maintains strong asset quality and liquidity, macroeconomic uncertainties could impact future growth projections. Recent corporate events highlight the company’s strategic positioning and competitive strengths.
To see Spark’s full report on QCRH stock, click here.
Executive/Board ChangesBusiness Operations and Strategy
QCR Holdings Announces CEO Transition and New Leadership
Neutral
Feb 24, 2025
On February 24, 2025, QCR Holdings announced the retirement of CEO Larry J. Helling, effective immediately after the annual stockholders’ meeting on May 22, 2025. Todd A. Gipple, currently the President and CFO, will assume the role of CEO, while Nick W. Anderson will become the CFO. This transition is part of a planned succession, with Mr. Helling continuing as a Special Advisor for 18 months post-retirement. The company has also entered into new employment agreements with Gipple and Anderson, including performance-based incentives and severance benefits, ensuring a smooth leadership transition and continued focus on community banking and financial performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.