The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Jiangxi Hungpai New Material (SHSE:605366). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.
Check out our latest analysis for Jiangxi Hungpai New Material
How Fast Is Jiangxi Hungpai New Material Growing?
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. Over the last three years, Jiangxi Hungpai New Material has grown EPS by 16% per year. That's a pretty good rate, if the company can sustain it.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. It's noted that Jiangxi Hungpai New Material's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. Jiangxi Hungpai New Material shareholders can take confidence from the fact that EBIT margins are up from 11% to 22%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
SHSE:605366 Earnings and Revenue History October 21st 2022
While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Jiangxi Hungpai New Material's balance sheet strength, before getting too excited.
Are Jiangxi Hungpai New Material Insiders Aligned With All Shareholders?
It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Jiangxi Hungpai New Material followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. Notably, they have an enviable stake in the company, worth CN¥732m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!
Is Jiangxi Hungpai New Material Worth Keeping An Eye On?
One positive for Jiangxi Hungpai New Material is that it is growing EPS. That's nice to see. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. You still need to take note of risks, for example - Jiangxi Hungpai New Material has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
投资一家能够扭转命运的公司所带来的兴奋,对一些投机者来说是一个巨大的吸引力,因此,即使是没有收入、没有利润、业绩不佳的公司,也能设法找到投资者。但现实是,当一家公司每年亏损时,在足够长的时间内,投资者通常会承担他们的损失份额。虽然一家资金雄厚的公司可能会亏损多年,但它最终需要创造利润,否则投资者就会离开,公司就会枯萎。
如果这种公司不是你的风格,你喜欢能产生收入,甚至能赚钱的公司,那么你很可能会对江西红牌新材料(上交所:605366)。虽然这并不一定意味着它是否被低估了,但该业务的盈利能力足以证明它有一定的升值价值--特别是如果它在增长的话。
看看我们对江西红牌新材料的最新分析
江西红牌新材料成长有多快?
如果一家公司能够在足够长的时间内保持每股收益(EPS)的增长,其股价最终应该会随之而来。这使得每股收益的增长对任何公司来说都是一个有吸引力的品质。在过去的三年里,江西宏派新材料以每年16%的速度增长每股收益。这是一个相当不错的比率,如果公司能够维持下去的话。
要复核一家公司的增长,一种方法是观察其收入和息税前利润(EBIT)的变化情况。据指出,江西红牌新材料的收入从运营部过去12个月的收入低于其收入,因此这可能会扭曲我们对其利润率的分析。江西宏派新材料股东可以从息税前利润从11%上升到22%,以及收入的增长中获得信心。在我们的书中,勾选这两个方框是增长的一个好迹象。
下面的图表显示了该公司的利润和收入是如何随着时间的推移而变化的。要查看更详细的信息,请点击图片。
上海证券交易所:605366收益和收入历史2022年10月21日
虽然看到利润增长总是好事,但你应该始终记住,疲软的资产负债表可能会回来产生影响。因此,在过于兴奋之前,先看看江西宏派新材料的资产负债表实力。
江西宏派新材料内部人士是否与全体股东一致?
如果内部人士也持有一家公司的股票,这应该会给投资者带来一种安全感,使他们的利益紧密一致。江西红牌新材料的追随者将会感到欣慰,因为他们知道,内部人士拥有大量资本,他们的最大利益与更广泛的股东群体保持一致。值得注意的是,他们持有该公司令人羡慕的股份,价值7.32亿元人民币。这表明,领导层在决策时会非常关注股东的利益!
江西红牌新材料值得关注吗?
江西红牌新材料的一个利好消息是,它的每股收益不断增长。很高兴见到你。对于那些希望获得更多回报的人来说,高水平的内部人持股增强了我们对这一增长的热情。这种结合非常有吸引力。因此,是的,我们确实认为这只股票值得关注。你还需要注意风险,比如-江西红牌新材料3个警示标志(还有一点不可忽视)我们认为你应该知道这一点。
总是有可能做得很好,购买股票不是不断增长的收入和不要有内部人士购买股票。但对于那些考虑这些重要指标的人,我们建议您查看以下公司做拥有这些功能。你可以在这里访问它们的免费列表。
请注意,本文中讨论的内幕交易指的是相关司法管辖区内的应报告交易。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。