Some have more money than sense, they say, so even companies with no revenue, no profit and a history of failures can easily find investors. But as Peter Lynch said in One Up on Wall Street“Long shots almost never pay off.”

So if you’re like me, you might be more interested in profitable and growing companies, like Garo Aktiebolag (STO:GARO). Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Check out our latest analysis for Garo Aktiebolag

How fast is Garo Aktiebolag developing?

If you think markets are even remotely efficient, you expect a company’s share price to follow its earnings per share (EPS) over the long term. Therefore, there are many investors who like to buy shares in companies that grow EPS. Impressively, Garo Aktiebolag has increased EPS by 26% pa, compounded, over the past three years. If the company can sustain this type of growth, we expect shareholders to come out on top.

I like to see revenue growth as an indication that growth is sustainable, and I look for a high margin on earnings before interest and taxes (EBIT) to point to a competitive moat (although some low-margin companies also have moats). Garo Aktiebolag has maintained stable EBIT margins over the past year, while increasing its turnover by 24% to 1.3 billion kr. This is a real plus point.

You can check the company’s revenue and profit growth trend in the table below. For more details, click on the image.

In investing, as in life, the future matters more than the past. So why not check this out free interactive visualization of Garo Aktiebolag forecast profits?

Are Garo Aktiebolag insiders aligned with all shareholders?

Many consider high insider shareholding to be a strong sign of alignment between a company’s executives and ordinary shareholders. So, as you can imagine, the fact that Garo Aktiebolag insiders hold a significant number of shares certainly appeals to me. In fact, with 38% of the company to their name, insiders are deeply invested in the company. I take comfort in this type of alignment, as it suggests that the company will be run for the benefit of shareholders. At the current share price, this insider stake is worth 2.9 billion kr. That’s what I call serious skin in the game!

It means a lot to see insiders invested in the company, but I wonder if the compensation policies are shareholder-friendly. A brief analysis of CEO compensation suggests they are. I found out that the median total compensation of CEOs of companies like Garo Aktiebolag with market caps between 3.8 billion kr and 15 billion kr is around 6.6 million kr.

CEO of Garo Aktiebolag received 3.4 million kr in compensation for the year ended. That seems pretty reasonable, especially given that it’s below the median for companies of a similar size. CEO compensation isn’t the most important aspect of a company to consider, but when it’s reasonable, it gives me a bit more confidence that executives are looking out for shareholders’ interests. It can also be a sign of good governance more generally.

Does Garo Aktiebolag deserve a place on your watch list?

You cannot deny that Garo Aktiebolag has grown its earnings per share at a very impressive rate. It’s attractive. If you need more conviction beyond that EPS growth rate, don’t forget reasonable compensation and high insider participation. Each to their own taste, but I think all of this makes Garo Aktiebolag quite interesting. However, you should always think about the risks. Concrete example, we spotted 1 warning sign for Garo Aktiebolag you should be aware.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

It’s only natural that many investors, especially those new to the game, prefer to buy stocks in “sexy” stocks with a good history, even if those companies are losing money. Unfortunately, high-risk investments are often unlikely to ever return, and many investors pay a price to learn their lesson.

Contrary to all that, I prefer to spend time on companies like BlueScope Steel (ASX: BSL), which not only generates revenue, but also profits. Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. Conversely, a loss-making business has yet to prove itself with profits, and eventually the sweet milk of outside capital can turn sour.

See our latest review for BlueScope Steel

How fast is BlueScope Steel growing?

The market is a short-term voting machine, but a long-term weighing machine, so stock price eventually follows earnings per share (EPS). This means EPS growth is seen as a real benefit by most successful long-term investors. Impressively, BlueScope Steel has increased EPS by 18% pa, compounded, over the past three years. Generally, we would say that if a company can follow this kind of growth, shareholders will be smiling.

I like to take a look at earnings before interest and tax margins (EBIT), as well as revenue growth, to get another view of the quality of the company’s growth. BlueScope Steel shareholders can take comfort in the fact that EBIT margins have increased from 6.6% to 21% and revenues are increasing. It’s great to see, on both counts.

The graph below shows how the company’s bottom line and top results have grown over time. For more details, click on the image.

The trick, as an investor, is to find companies that go to perform well in the future, not just in the past. To this end, now and today you can check our visualization of analyst consensus forecasts for the future BlueScope Steel EPS 100% free.

The story continues

Are BlueScope Steel insiders aligned with all shareholders?

Given that BlueScope Steel has a market capitalization of A$9.0 billion, we wouldn’t expect insiders to hold a high percentage of shares. But we are reassured by the fact that they are investors in the company. To be precise, they own A$49 million worth of shares. It shows strong buy-in and can indicate belief in the business strategy. Even though that’s only about 0.5% of the company, it’s enough money to indicate alignment between company executives and common shareholders.

Should you add BlueScope Steel to your watchlist?

For growth investors like me, BlueScope Steel’s gross earnings growth rate is a beacon in the night. Additionally, the high level of insider ownership impresses me and suggests that I am not the only one enjoying EPS growth. Rapid growth and confident insiders should be enough to warrant further research. So the answer is that I think it’s a good stock to follow. It must be said that we discovered 2 warning signs for BlueScope Steel (1 should not be ignored!) which you should be aware of before investing here.

While BlueScope Steel certainly looks good to me, I’d like it more if insiders were buying stocks. If you also like to see insiders buy, then this free list of growing companies that insiders are buyingcould be exactly what you are looking for.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. And in their study titled Who falls prey to the wolf of Wall Street? » Leuz and. al. found that it is “fairly common” for investors to lose money by buying into “pump and dump” schemes.

Contrary to all that, I prefer to spend time on companies like Private Medibank (ASX:MPL), which not only generates revenue, but also profits. Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. Conversely, a loss-making business has yet to prove itself with profits, and eventually the sweet milk of outside capital can turn sour.

Discover our latest analysis for Medibank Private

How fast is Medibank Private growing?

If a company can keep increasing its earnings per share (EPS) long enough, its stock price will eventually follow. Therefore, there are many investors who like to buy shares in companies that grow EPS. Over the past three years, Medibank Private has grown EPS by 5.1% per year. Although this type of growth rate is not surprising, it shows that the company is growing.

One way to check a company’s growth is to look at the evolution of its revenues and its earnings before interest and taxes (EBIT) margins. I note that the income from Medibank Private operations was lower than its turnover in the last twelve months, which could distort my analysis of its margins. While we note that Medibank Private’s EBIT margins have remained stable over the past year, revenues increased by 4.4% to A$7.1 billion. This is a real plus point.

You can check the company’s revenue and profit growth trend in the table below. To see the actual numbers, click on the chart.

You don’t drive with your eyes on the rearview mirror, so you might be more interested in that free report showing analyst forecasts for Medibank Private to come up profits.

Are Medibank private insiders aligned with all shareholders?

Generally, I think it’s worth considering how much the CEO gets paid, because unreasonably high rates could be considered against the interests of shareholders. For companies with a market capitalization between AU$5.5 billion and AU$17 billion, such as Medibank Private, the median CEO salary is around AU$3.4 million.

Medibank Private offered total compensation worth A$2.1 million to its CEO during the year at . This is below average for companies of a similar size and seems pretty reasonable to me. CEO compensation isn’t the most important aspect of a company to consider, but when it’s reasonable, it gives me a bit more confidence that executives are looking out for shareholders’ interests. It can also be a sign of good governance more generally.

Does Medibank Private deserve a spot on your watch list?

A plus point for Medibank Private is that it increases EPS. It’s nice to see. On top of that, my confidence in the board is bolstered by the fact that the CEO’s reasonable compensation. So overall, I think it’s at least worth considering for your watchlist. It is still necessary to take into account the risks, for example – Medibank Private has 1 warning sign we think you should know.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. But as Warren Buffett said, “If you’ve been playing poker for half an hour and you still don’t know who the sucker is, you’re the sucker.” When buying such stocks, investors are too often suckers.

Contrary to all that, I prefer to spend time on companies like FLEX LNG (OB:FLNG), which not only generates revenue, but also profits. Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Check out our latest analysis for FLEX LNG

Improved profits of FLEX LNG

In a capitalist society, capital drives out profits, which means stock prices tend to rise with earnings per share (EPS). So like the hint of a smile on a face I love, EPS growth usually makes me look twice. It is therefore impressive that FLEX LNG’s EPS rose from US$0.15 to US$3.05 in just one year. While this rate of growth is unlikely to be repeated, it looks like a breakout improvement. But the key is to discern if something profound has changed or if it’s just a one-time nudge.

A careful look at revenue growth and earnings before interest and tax (EBIT) margins can help inform a view on the sustainability of recent earnings growth. The good news is that FLEX LNG is increasing its revenues and EBIT margins have improved by 12.6 percentage points to 59% compared to last year. Checking those two boxes is a good sign of growth, in my book.

The graph below shows how the company’s bottom line and top results have grown over time. Click on the table to see the exact numbers.

The trick, as an investor, is to find companies that go to perform well in the future, not just in the past. To that end, right now and today, you can view our 100% Free Future FLEX LNG EPS Future Analyst Consensus Forecast Visualization.

Are FLEX LNG insiders aligned with all shareholders?

Personally, I like to see high insider ownership in a company, as it suggests that it will be run in the interests of shareholders. We are therefore pleased to report that FLEX LNG insiders own a significant share of the business. In fact, with 47% of the company to their name, insiders are deeply invested in the company. I take comfort in this type of alignment, as it suggests that the company will be run for the benefit of shareholders. At the current share price, this insider stake is worth US$4.9 billion. That’s what I call serious skin in the game!

Should you add FLEX LNG to your watchlist?

FLEX LNG’s revenue took off like any random cryptocurrency in 2017. This type of growth is just eye-catching, and the significant investment held by insiders certainly informs my view of the business. The hope is, of course, that the strong growth marks a fundamental improvement in the business economy. So, in my opinion, FLEX LNG deserves to be put on your watch list; after all, shareholders succeed when the market undervalues ​​fast-growing companies. What about the risks? Every business has them, and we’ve spotted 2 warning signs for FLEX LNG (1 of which is potentially serious!) that you should know about.

Of course, you can (sometimes) buy stocks that are not increased income and do not have insiders buying stocks. But as a growth investor, I always like to check out companies that do have these characteristics. You can access a free list of them here.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Some have more money than sense, they say, so even companies with no revenue, no profit and a history of failures can easily find investors. But as Peter Lynch said in One Up on Wall Street“Long shots almost never pay off.”

In the era of blue-sky tech-stock investments, my choice may seem old-fashioned; I always prefer profitable companies like Affle (India) (NSE: AFFLE). Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

See our latest analysis for Affle (India)

Affle (India) profit improvement

Over the past three years, earnings per share of Affle (India) have taken off like a rocket; fast and from a low base. So the actual growth rate doesn’t tell us much. It therefore makes sense to focus on the most recent growth rates instead. Like the latest New Year’s Eve fireworks accelerating across the sky, Affle (India)’s EPS has risen from ₹7.19 to ₹15.30 over the past year. 113% annual growth is certainly a sight to behold. This could be a sign that the company has reached a real inflection point.

I like to see revenue growth as an indication that growth is sustainable, and I look for a high margin on earnings before interest and taxes (EBIT) to point to a competitive moat (although some low-margin companies also have moats). I note that income from Affle (India) operations was lower than its turnover over the last twelve months, which could distort my analysis of its margins. While we note that Affle (India)’s EBIT margins have remained stable over the past year, revenues have grown by 105% to ₹9.3 billion. This is a real plus point.

In the table below, you can see how the company has increased its profits and revenue over time. For more details, click on the image.

As we live in the moment at all times, there is no doubt in my mind that the future matters more than the past. So why not check out this interactive chart outlining future EPS estimates for Affle (India)?

Are Affle (India) insiders aligned with all shareholders?

Like standing on the lookout, surveying the horizon at sunrise, insider buying, for some investors, brings joy. This view is based on the possibility that stock purchases signal an uptrend on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

Whichever way you look at it, Affle (India) shareholders can gain quiet confidence from the fact that insiders have shelled out £30m to buy shares over the past year. And when you consider that there has been no insider selling, you can understand why shareholders might believe that lady luck will grace this company. It should also be noted that it was CFO and COO Kapil Bhutani who made the largest single purchase, worth ₹28 million, paying ₹1,194 per share.

It’s reassuring that insiders at Affle (India) are buying the shares, but that’s not the only reason to believe management is fair to shareholders. I mean the very reasonable level of compensation for CEOs. I found out that the median total compensation of CEOs of companies like Affle (India) with a market capitalization between ₹75 billion and ₹239 billion is around ₹32 million.

The CEO of Affle (India) received a total compensation of just ₹250,000 in the year at . This could be considered a token amount and indicates that the company does not need to use the payment to incentivize the CEO – this is often a good sign. CEO compensation isn’t the most important aspect of a company to consider, but when it’s reasonable, it gives me a bit more confidence that executives are looking out for shareholders’ interests. It can also be a sign of a culture of integrity, broadly defined.

Does Affle (India) deserve a spot on your watch list?

Earnings per share for Affle (India) took off like a rocket aimed straight at the moon. Even better, we can see insider buying and the CEO salary seems reasonable. It could be that Affle (India) is at an inflection point, given the growth in EPS. If so, the potential for additional earnings probably deserves a spot on your watch list. We don’t want to rain too much on the parade, but we also found 1 warning sign for Affle (India) which you must take into account.

The good news is that Affle (India) is not the only growth stock with insider buying. Here’s a list…with insider purchases over the past three months!

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

For starters, it might seem like a good idea (and an exciting prospect) to buy a company that tells investors a good story, even if it completely lacks a track record of revenue and earnings. And in their study titled Who falls prey to the wolf of Wall Street? » Leuz and. al. found that it is “fairly common” for investors to lose money by buying into “pump and dump” schemes.

If, on the other hand, you like businesses that generate revenue and even profit, then you might be interested in AGCO (NYSE: AGCO). Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Check out our latest analysis for AGCO

How fast is AGCO growing its earnings per share?

If a company can keep increasing its earnings per share (EPS) long enough, its stock price will eventually follow. Therefore, there are many investors who like to buy shares in companies that grow EPS. Who among us wouldn’t applaud AGCO’s stratospheric annual EPS growth of 51%, compounded, over the past three years? This kind of growth never lasts long, but like a shooting star, it’s worth watching when it happens.

One way to check a company’s growth is to look at the evolution of its revenues and its earnings before interest and taxes (EBIT) margins. The good news is that AGCO is increasing its revenue and EBIT margins have improved by 2.4 percentage points to 8.7% compared to last year. It’s great to see, on both counts.

In the table below, you can see how the company has increased its profits and revenue over time. To see the actual numbers, click on the chart.

Of course, the trick is to find stocks that have their best days in the future, not in the past. You can of course base your opinion on past performance, but you can also check out this interactive chart of professional analyst EPS forecasts for AGCO.

Are AGCO insiders aligned with all shareholders?

Given that AGCO has a market capitalization of US$8.6 billion, we wouldn’t expect insiders to hold a high percentage of shares. But we are reassured by the fact that they have invested in the company. Indeed, they have invested a mountain of glittering wealth in it, currently valued at US$108 million. This suggests to me that management will be very mindful of shareholder interests when making decisions!

It’s good to see that insiders are invested in the company, but are the compensation levels reasonable? Well, based on the CEO’s salary, I’d say they are indeed. I found that the median total compensation for CEOs of companies like AGCO with a market capitalization between $4.0 billion and $12 billion is around $6.5 million.

AGCO offered total compensation worth US$4.5 million to its CEO during the year at . This is below average for companies of a similar size and seems pretty reasonable to me. Although the level of CEO compensation is not a determining factor in my view of the company, modest compensation is positive, as it suggests that the board has the interests of shareholders in mind. I would also say that reasonable levels of compensation attest to good decision-making more generally.

Should you add AGCO to your watch list?

AGCO’s earnings per share took off like a rocket aimed straight at the moon. The icing on the cake is that insiders own a bunch of stock, and the CEO salary really seems quite reasonable. The strong improvement in EPS suggests businesses are doing well. AGCO certainly ticks a few of my boxes, so I think it’s probably worth looking into further. Once you’ve identified a business you like, the next step is to figure out what you think it’s worth. And right now is your chance to see our exclusive discounted cash flow assessment of AGCO. You might benefit from taking a look today.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. But as Warren Buffett said, “If you’ve been playing poker for half an hour and you still don’t know who the sucker is, you’re the sucker.” When buying such stocks, investors are too often suckers.

Contrary to all that, I prefer to spend time on companies like Roche Bobois (EPA:RBO), which not only generates revenue, but also profits. Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. While a well-funded business may suffer losses for years, unless its owners have an endless appetite to subsidize the customer, it will eventually have to turn a profit, or else breathe its last breath.

Check out our latest analysis for Roche Bobois

How fast is Roche Bobois increasing its earnings per share?

If a company can keep increasing its earnings per share (EPS) long enough, its stock price will eventually follow. Therefore, there are many investors who like to buy shares in companies that grow EPS. Who among us wouldn’t applaud Roche Bobois’ stratospheric annual EPS growth of 58%, compound, over the past three years? Although this type of growth rate is not sustainable for long, it certainly catches my eye. like a crow with a sparkling stone.

I like to take a look at earnings before interest and tax margins (EBIT), as well as revenue growth, to get another view of the quality of the company’s growth. The good news is that Roche Bobois is increasing its revenues and EBIT margins have improved by 5.2 percentage points to 9.3% compared to last year. It’s great to see, on both counts.

You can check the company’s revenue and profit growth trend in the table below. For more details, click on the image.

In investing, as in life, the future matters more than the past. So why not check this out free interactive visualization of Roche Bobois provide profits?

Are Roche Bobois insiders aligned with all shareholders?

I feel safer owning stock in a company if insiders also own stock, thereby aligning our interests more closely. Accordingly, I am encouraged by the fact that insiders hold Roche Bobois shares of considerable value. Indeed, they have invested a mountain of glittering wealth there, currently valued at 101 million euros. This equates to 32% of the company, making insiders powerful and aligned with other shareholders. It may be my imagination, but I feel the glimmer of opportunity.

Should Roche Bobois be added to its watch list?

Roche Bobois revenue took off like any random cryptocurrency in 2017. This BPA growth is certainly catching my attention, and the large insider ownership only heightens my interest. Sometimes rapid EPS growth is a sign that the business has reached an inflection point; and I like those. So yes, on this short analysis, I think it’s worth considering Roche Bobois for a spot on your watch list. However, before you get too excited, we found out 3 warning signs for Roche Bobois (1 is a little unpleasant!) which you should be aware of.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Some have more money than common sense, they say, so even companies with no income, no profit, and a history of failure can easily find investors. And in their study entitled Who is the prey of the Wolf of Wall Street? ‘ Leuz and. Al have found that it is “quite common” for investors to lose money by buying into “pump and dump” programs.

In the age of investing in the blue sky of tech stocks, my choice may seem old-fashioned; I always prefer profitable businesses like Invest in media and games (ETR: M8G). While profit isn’t necessarily social good, it’s easy to admire a business that can consistently produce it. Loss-making businesses always race against time to achieve financial viability, but time is often the friend of the profitable business, especially if it is growing.

Check out our latest review for Media and Games Invest

Improving the profits of Media and Games Invest

In a capitalist society, capital runs after profits, which means that stock prices tend to rise with earnings per share (EPS). So, like a ray of sunlight through a hole in the clouds, improving EPS is considered a good sign. So you can imagine that it almost knocked me off the hook when I realized that Media and Games Invest had increased their EPS from € 0.0026 to € 0.072, in a short year. While this rate of growth is unlikely to repeat itself, it does look like a breakout improvement. But the key is to discern if something deep has changed, or if it’s just a one-time boost.

A close look at growth in income and profit margins before interest and taxes (EBIT) can help inform a vision on the sustainability of recent earnings growth. Shareholders of Media and Games Invest can be confident that EBIT margins are up 4.2% to 10.0% and revenues are growing. Checking those two boxes is a good sign of growth in my book.

The graph below shows how the company’s bottom line has progressed over time. For more details, click on the image.

You don’t drive with your eyes on the rearview mirror, so this may be of more interest to you free report showing analyst forecasts for Media and Games Invest future profits.

Are Media and Games Invest Insiders Aligned with All Shareholders?

Like staying on the lookout, surveying the horizon at sunrise, insider buying, for some investors, brings joy. Because often buying stocks is a sign that the buyer sees them as undervalued. Small purchases aren’t always indicative of conviction, however, and insiders don’t always make the right choices.

Note that last year, insiders sold – € 285,000 in shares. But that’s far less than the 1.5 million euros spent by insiders to buy stocks. I find this encouraging as it suggests that they are optimistic about the future of Media and Games Invest. We also note that it was the independent director, Elizabeth Para, who made the largest acquisition, paying € 188,000 for shares at around € 4.00 each.

Along with insider buying, another encouraging sign for Media and Games Invest is that insiders, as a group, have a significant stake. Indeed, they have invested a sparkling mountain of wealth, currently valued at 137 million euros. This equates to 23% of the company, making insiders powerful and aligned with other shareholders. It may be my imagination, but I feel the glimmer of an opportunity.

Should You Add Media and Gaming Investments to Your Watchlist?

Media and Games Invest’s earnings per share soared, like a mountain goat climbing the Alps. In addition, insiders have a large stake in the company and have bought more shares. This quick overview suggests that the business may be of good quality, and also at an inflection point, so perhaps Media and Games Invest deserves timely attention. Still, you should educate yourself on 2 warning signs we spotted some with Media and Games Invest (including 1 that should not be overlooked).

The good news is that Media and Games Invest isn’t the only growth stock with insider buying. Here’s a list of them … with insider buys over the past three months!

Please note that the insider trading discussed in this article refers to reportable trades in the relevant jurisdiction.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

For newbies, it might seem like a good idea (and an exciting prospect) to buy a business that tells investors a good story, even if it lacks a history of revenue and profit altogether. But the reality is that when a business loses money every year, for long enough, its investors will usually take their share of those losses.

In the age of investing in the blue sky of tech stocks, my choice may seem old-fashioned; I always prefer profitable businesses like Goal (ASX: OCL). While profit isn’t necessarily social good, it’s easy to admire a business that can consistently produce it. While a well-funded business can suffer losses for years, unless its owners have an endless appetite to subsidize the customer, it will eventually have to generate a profit, or else take its last breath.

Check out our latest analysis for Objective

How fast is Objective increasing earnings per share?

The market is a short-term voting machine, but a long-term weighing machine, so the stock price eventually follows earnings per share (EPS). So it’s no surprise that I like to invest in companies with growing EPS. It’s certainly nice to see that Objective has managed to increase its EPS by 29% per year over three years. It is therefore not surprising to see the company trading at a very high multiple of its (past) profits.

I like to see revenue growth as an indication that growth is sustainable, and I look for a high profit margin before interest and taxes (EBIT) to indicate a competitive gap (although some low-margin companies also have ditches). Objective has maintained stable EBIT margins over the past year, while increasing revenue by 36% to AU $ 95 million. It’s really positive.

The graph below shows how the company’s bottom line has progressed over time. Click on the graph to see the exact numbers.

While it is always good to see increased profits, you should always remember that a low balance sheet could come back to bite. So check the strength of Objectif’s track record, before you get too excited.

Are objective insiders aligned with all shareholders?

I feel more secure owning shares in a company if insiders also own shares, thereby aligning our interests more closely. So it is good to see that Objective insiders have a significant amount of capital invested in the stock. To be precise, they have shares worth AU $ 25 million. This shows strong buy-in and may indicate a belief in business strategy. Although he only represents 1.2% of the business, the value of this investment is enough to show that insiders have a lot going on in the business.

It means a lot to see insiders investing in the company, but I wonder if the compensation policies are shareholder friendly. A brief analysis of CEO compensation suggests they are. I found that the median total compensation for CEOs of companies like Objective with market caps between A $ 1.4 billion and A $ 4.4 billion is around A $ 1.9 million.

The CEO of Objective received total compensation of only AU $ 303,000 in the year to. It sounds like modest compensation to me, and may suggest a certain respect for the interests of shareholders. CEO compensation levels aren’t the most important metric for investors, but when the salary is modest, it promotes better alignment between the CEO and common shareholders. It can also be a sign of a culture of integrity, in the broad sense.

Does Objective deserve a spot on your watchlist?

You cannot deny that Objective has increased its earnings per share at a very impressive rate. It is attractive. If that’s not enough, also consider that the CEO’s compensation is quite reasonable and that insiders are well invested alongside other shareholders. Everyone has their own tastes, but I think all of this makes Objective quite interesting. Another important measure of business quality that is not discussed here is return on equity (ROE). Click on this link to see how Objective stacks up against its industry peers when it comes to ROE.

While Objectif certainly looks good to me, I would like more insiders to buy stocks. If you also like to see insiders buy, then this free list of growing companies that insiders are buying, might be exactly what you are looking for.

Please note that the insider trading discussed in this article refers to reportable trades in the relevant jurisdiction.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

For newbies, it might seem like a good idea (and an exciting prospect) to buy a business that tells investors a good story, even if it lacks a history of revenue and profit altogether. And in their study entitled Who is the prey of the Wolf of Wall Street? ‘ Leuz and. Al have found that it is “quite common” for investors to lose money by purchasing “pump and dump” programs.

Contrary to all this, I prefer to spend time on companies like Maithan alloys (NSE: MAITHANALL), which not only has income, but also profits. While profit isn’t necessarily social good, it’s easy to admire a business that can consistently produce it. While a well-funded business can suffer losses for years, unless its owners have an endless appetite to subsidize the customer, it will eventually have to generate a profit, or else take its last breath.

See our latest review for Maithan Alloys

How fast is Maithan Alloys increasing its earnings per share?

Even modest growth in earnings per share (EPS) can create significant value, when it is reliably sustained year over year. So, the growth of EPS can certainly make an investor take note of a security. Like a hawk taking flight, Maithan Alloys’ BPA has dropped from 70.43 to 106 in the past year. This is a commendable gain of 50%.

I like to look at earnings before interest and tax margins (EBIT), as well as revenue growth, to get another idea of ​​how well the business is growing. The good news is that Maithan Alloys is increasing revenue and EBIT margins have improved 7.8 percentage points to 20% over the past year. It’s great to see, on both counts.

The graph below shows how the company’s bottom line has progressed over time. For more details, click on the image.

While it is always good to see increased profits, you should always remember that a low balance sheet could come back to bite. So check out the strength of Maithan Alloys’ balance sheet, before you get too excited.

Are Maithan Alloys Insiders Aligned with All Shareholders?

I like that business leaders have some skin in the game, so to speak, because it increases the alignment of incentives between the people who run the business and its real owners. As a result, I am encouraged that insiders own Maithan Alloys shares of considerable value. Since insiders own a small fortune of stocks, currently valued at 4.9 billion yen, they have a lot of motivation to push the company to succeed. At 17% of the company, insider co-investing gives me confidence that management will be making focused, long-term decisions.

Is Maithan Alloys worth watching?

You cannot deny that Maithan Alloys has increased its earnings per share at a very impressive rate. It is attractive. Additionally, the high level of insider ownership impresses me and suggests that I am not the only one enjoying the growth of BPA. So this is most likely the kind of business that I like to spend time researching, in order to discern its true value. Of course, just because Maithan Alloys is growing doesn’t mean he’s undervalued. If you’re wondering about valuation, check out this gauge of its price / earnings ratio, relative to its industry.

Of course, you can (sometimes) buy stocks that are not growing income and not have insiders who buy stocks. But as a growth investor, I always like to check out companies that to do have these characteristics. You can access a free list of them here.

Please note that the insider trading discussed in this article refers to reportable trades in the relevant jurisdiction.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.