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QCR Holdings (QCRH)
NASDAQ:QCRH
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QCR Holdings
(NASDAQ:QCRH)
63Neutral
QCR Holdings (QCRH) vs. S&P 500 (SPY)
Market Cap
$1.09B
Dividend Yield0.37%
Average Volume (3M)89.49K
Price to Earnings (P/E)9.6
Beta (1Y)0.99
Revenue Growth9.56%
EPS Growth-0.32%
CountryUS
Employees941
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.71
Shares Outstanding16,901,169
10 Day Avg. Volume85,286
30 Day Avg. Volume89,489
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$95.50Price Target Upside47.83% 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
64.60
Price Trends
74.60
Negative
80.15
Negative
76.06
Negative
Market Momentum
-0.90
Negative
40.63
Neutral
18.90
Positive
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 64.6 is below the 20-day moving average (MA) of 71.94, below the 50-day MA of 74.60, and below the 200-day MA of 76.06, indicating a bearish trend. The MACD of -0.90 indicates Negative momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.02B | 7.88 | 17.92% | 3.75% | 8.03% | -8.05% | |
70 Outperform | $3.34B | 15.60 | 14.16% | 1.80% | 12.93% | 1.40% | |
67 Neutral | $2.45B | 17.78 | 9.73% | 4.55% | 4.63% | -16.29% | |
63 Neutral | $12.86B | 9.17 | 9.14% | 4.78% | 16.41% | -10.11% | |
63 Neutral | $1.09B | 9.62 | 12.09% | 0.37% | 9.56% | -0.32% | |
44 Neutral | $391.24M | ― | -9.34% | 1.05% | 6.75% | 62.30% |
* Financial Sector Average
Performance Comparison
QCRH
QCR Holdings
64.60
6.21
10.64%
BANF
BancFirst
100.43
16.39
19.50%
BOH
Bank Of Hawaii
61.50
2.94
5.02%
PFBC
Preferred Bank
76.01
3.14
4.31%
FFWM
First Foundation
4.75
-2.58
-35.20%
QCR Holdings Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -20.14% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive overall sentiment with record net income, strong loan and deposit growth, and significant improvements in wealth management and capital markets revenue. However, there are concerns about increasing nonperforming assets and the impact of interest rate cap expirations.Highlights
Record Net Income for 2024
QCR Holdings delivered record net income of $114 million, or $6.71 per diluted share for the full year 2024. Adjusted net income was $119 million, or $7.03 per diluted share.
Strong Loan and Deposit Growth
Total loan growth for the year was 10%, driven by low-income housing tax credit (LIHTC) lending and conventional commercial lending. Core deposits grew $474 million or 8% for the year.
Wealth Management Expansion
Assets under management increased by $1 billion or 20%, resulting in a 15% increase in total wealth management revenue.
Capital Markets Revenue
Noninterest income reached $116 million, led by $71 million from capital markets revenue. A gain of $1.4 million was realized from the securitization of LIHTC loans.
Improvement in Tangible Book Value
Tangible book value per share grew by $1.21, representing 10% annualized growth for the quarter.
Lowlights
Increase in Nonperforming Assets
Nonperforming assets increased by $11 million or 33% for the year, with a modest increase in the fourth quarter due to three loans in discrete industries.
Interest Rate Cap Expiration
The expiration of interest rate caps is expected to reduce net interest margin by 4 basis points in the first quarter of 2025.
Challenges in LIHTC Securitization Gains
The gain from the latest LIHTC loan securitization was $1.4 million, which was below the expected floor of $2 million.
Company Guidance
During the Q4 2024 earnings call, QCR Holdings, Inc. provided guidance for 2025, highlighting several key metrics. The company anticipates gross loan growth of 8% to 10%, with a net loan growth target of 1% to 3% after considering planned loan securitizations and M2 equipment finance loan runoff. Total core deposits grew by $474 million, or 8%, in 2024, and the company aims to reduce its loan-to-deposit ratio into the low 90s over the next few years. QCR Holdings projects its adjusted net interest margin (NIM) on a tax-equivalent yield basis to either remain static or increase by up to 5 basis points in Q1 2025, despite a 4 basis point reduction from expired interest rate caps. The company foresees capital markets revenue from swap fees ranging from $50 million to $60 million over the next 12 months. Additionally, noninterest expenses are expected to be between $52 million and $55 million in Q1 2025, emphasizing continued investment in digital transformation.QCR Holdings Corporate Events
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.
Business Operations and StrategyFinancial Disclosures
QCR Holdings Highlights Strong Financial Performance and Growth
Positive
Jan 24, 2025
On January 24, 2025, QCR Holdings posted an investor presentation detailing the company’s financial performance and market positioning. The release highlighted QCR Holdings’ continued profitability and growth, with an impressive compound annual growth rate in adjusted earnings per share since 2019. The presentation underscores the company’s robust market share in key regions, with a focus on maintaining strong commercial, industrial, and technology activity. This strategic positioning and consistent financial performance suggest positive implications for stakeholders, reinforcing QCR Holdings’ competitive edge in the financial industry.
Executive/Board Changes
QCR Holdings Announces Leadership Transition Plan
Neutral
Jan 8, 2025
QCR Holdings, Inc. announced the retirement of John H. Anderson from his roles as Chief Deposit Officer and CEO of Quad City Bank and Trust Company, effective January 3, 2025. In connection with his retirement, a Consulting Services Agreement was established, allowing Anderson to provide consulting services to aid in the transition, ensuring continuity in business development and employee mentoring until December 31, 2025.
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.