QCR Holdings, Inc. (QCRH) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

QCR Holdings, Inc. (QCRH) Financial Services Profile

QCR Holdings, Inc. is a regional multi-bank holding company offering a comprehensive suite of financial services, including commercial and consumer banking, trust, and asset management. With a focus on serving communities in the Midwest, QCRH competes with larger national banks and smaller community banks, leveraging its local expertise and personalized service.

What Is the Investment Thesis for QCRH?

QCR Holdings presents a compelling investment case based on its established presence in growing Midwestern markets and diversified financial service offerings. With a market capitalization of $1.61B and a P/E ratio of 11.25, QCRH demonstrates financial stability. The company's profit margin of 22.2% and gross margin of 59.5% indicate efficient operations. Key growth catalysts include expansion within existing markets and strategic acquisitions of smaller banks. However, potential risks include interest rate sensitivity and competition from larger national banks and smaller community banks. The company's beta of 0.79 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

QCRH Key Highlights

• Market Cap of $1.61B demonstrates substantial size and investor confidence.
• P/E ratio of 11.25 indicates a potentially undervalued stock relative to earnings.
• Profit Margin of 22.2% showcases strong profitability and operational efficiency.
• Gross Margin of 59.5% reflects effective cost management and pricing strategies.
• Dividend Yield of 0.31% provides a modest income stream for investors.

Who Are QCRH's Competitors?

QCRH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are QCRH's Key Strengths?

• Diversified revenue streams across commercial banking, consumer banking, and wealth management.
• Strong presence in key Midwestern markets with established customer relationships.
• Conservative lending practices and a solid credit portfolio.
• Experienced management team with a proven track record.

What Are QCRH's Weaknesses?

• Limited geographic diversification compared to larger national banks.
• Higher operating expenses compared to more efficient competitors.
• Reliance on traditional banking services, with slower adoption of digital technologies.
• Vulnerability to interest rate fluctuations and economic downturns.

What Could Drive QCRH Stock Higher?

• Expansion of digital banking platform to attract and retain customers.
• Potential acquisitions of smaller community banks in adjacent markets.
• Growth in wealth management services driven by an aging population.
• Implementation of targeted marketing campaigns to increase brand awareness.

What Are the Key Risks for QCRH?

• Financial-distress signal — its Altman Z-Score of 0.35 sits in the distress zone (elevated bankruptcy risk).
• Rising interest rates could negatively impact net interest margin.
• Economic recession could lead to increased loan defaults.
• Increased competition from larger national banks and fintech companies.
• Cybersecurity threats and data breaches could damage reputation and financial performance.
• Changes in regulatory requirements could increase compliance costs.

What Are the Growth Opportunities for QCRH?

• Expansion within Existing Markets: QCRH can capitalize on its established presence in the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities by deepening its market penetration. This involves increasing its customer base, expanding its product offerings, and enhancing its brand recognition. The market size for financial services in these regions is estimated at $5 billion, with a projected annual growth rate of 3%. By focusing on local expertise and personalized service, QCRH can gain a competitive advantage over larger national banks.
• Strategic Acquisitions: QCRH can pursue strategic acquisitions of smaller community banks in adjacent markets to expand its geographic footprint and increase its market share. This approach allows QCRH to enter new markets quickly and efficiently, while also leveraging synergies and economies of scale. The market for community bank acquisitions is estimated at $2 billion annually, with a focus on banks with assets under $500 million. QCRH's experience in integrating acquired banks positions it well to execute this strategy successfully.
• Enhanced Digital Banking Platform: Investing in a robust and user-friendly digital banking platform can attract and retain customers, particularly younger demographics who prefer online and mobile banking solutions. This includes offering features such as mobile check deposit, online bill pay, and personalized financial advice. The digital banking market is projected to reach $10 billion by 2028, with a growth rate of 15% annually. By enhancing its digital capabilities, QCRH can improve customer satisfaction and reduce operational costs.
• Increased Focus on Wealth Management Services: Expanding its wealth management services can generate higher fee income and diversify its revenue streams. This includes offering services such as financial planning, investment management, and trust administration to high-net-worth individuals and families. The wealth management market is estimated at $20 billion in the Midwest, with a projected annual growth rate of 5%. QCRH's existing trust and asset management services provide a solid foundation for expanding its wealth management offerings.
• Targeted Marketing Campaigns: Implementing targeted marketing campaigns focused on specific customer segments, such as small business owners and young professionals, can increase brand awareness and drive customer acquisition. This involves utilizing digital marketing channels, social media, and community events to reach potential customers. The marketing spend for regional banks is estimated at $500 million annually, with a focus on digital channels. By optimizing its marketing efforts, QCRH can improve its customer acquisition cost and increase its market share.

What Opportunities Does QCRH Have?

• Expansion into new markets through strategic acquisitions.
• Increased focus on digital banking and mobile payment solutions.
• Growth in wealth management services driven by an aging population.
• Development of new products and services tailored to specific customer segments.

What Threats Does QCRH Face?

• Increased competition from larger national banks and fintech companies.
• Rising interest rates and a potential economic recession.
• Changes in regulatory requirements and compliance costs.
• Cybersecurity threats and data breaches.

What Are QCRH's Competitive Advantages?

• Strong local presence and established relationships in key Midwestern markets.
• Diversified financial service offerings, including commercial and consumer banking, and trust and asset management.
• Experienced management team with a proven track record of growth and profitability.
• Conservative lending practices and a strong credit culture.

What Does QCRH Do?

Founded in 1993 and headquartered in Moline, Illinois, QCR Holdings, Inc. has grown into a prominent multi-bank holding company operating across several key Midwestern markets. The company's core business revolves around providing a comprehensive suite of financial services, including commercial and consumer banking, as well as trust and asset management. QCRH's deposit products encompass a range of options, such as noninterest-bearing demand, interest-bearing demand, time deposits, and brokered deposits, catering to diverse customer needs. On the lending side, QCRH offers a variety of commercial and retail lending solutions, including loans to small and mid-sized businesses, business lines of credit, term loans, commercial and residential real estate loans, and various consumer loans like home improvement, home equity, and auto loans. The company also engages in direct financing leases of machinery and equipment to commercial and industrial businesses. QCRH strategically serves the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities, tailoring its services to the specific needs of these markets. By combining a community-focused approach with a diverse range of financial products, QCRH aims to build long-term relationships with its customers and stakeholders.

What Products and Services Does QCRH Offer?

• Provides commercial banking services to businesses of all sizes.
• Offers consumer banking services, including checking and savings accounts.
• Manages trusts and provides asset management services for individuals and institutions.
• Provides loans for various purposes, including business expansion, real estate, and personal needs.
• Offers equipment leasing services to commercial and industrial businesses.
• Issues trust preferred securities.

How Does QCRH Make Money?

• Generates revenue through interest income from loans and leases.
• Earns fee income from trust and asset management services.
• Collects service charges on deposit accounts.
• Profits from the spread between interest earned on assets and interest paid on liabilities.

What Industry Does QCRH Operate In?

QCR Holdings operates within the regional banking sector, which is characterized by intense competition and evolving regulatory landscapes. The industry is influenced by factors such as interest rate fluctuations, economic growth, and technological advancements. QCRH competes with both larger national banks and smaller community banks, requiring a focus on personalized service and local market expertise. The regional banking sector is experiencing consolidation, presenting both opportunities and challenges for QCRH. The market is projected to grow moderately, driven by increased demand for loans and financial services from small and medium-sized businesses.

Who Are QCRH's Key Customers?

• Small and mid-sized businesses seeking loans and banking services.
• Individuals seeking personal banking and wealth management services.
• Corporations requiring commercial lending and treasury management solutions.
• Government agencies needing banking and financial services.

QCRH Valuation & Market Position

With a $1.61B market cap, QCR Holdings, Inc. sits in the small-cap segment of the market. Relative to its peer group, QCRH's quantitative score of 96/100 is roughly in line with the peer average of 93/100.

FY2026 estForward Outlook

Wall Street analysts project QCR Holdings, Inc. revenue of about $424.9M for fiscal 2026, with EPS near $8.16.

F-Score 8/9Financial Health

QCR Holdings, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.35 places it in the distress zone, a signal of elevated financial risk.

ROE 12%Key Financial Metrics

Return on equity for QCR Holdings, Inc. stands at 12.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. QCRH trades at a trailing price-to-earnings ratio of 11.89, below the Financial Services sector average of ~18x. Its free cash flow yield is 22.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.72 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 8.4%, the inverse of the P/E and a quick read on earnings relative to price.

QCRH Financials

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QCRH Analyst Consensus

QCRH MoonshotScore

QCRH Financial Services Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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