For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
In contrast to all that, many investors prefer to focus on companies like Xinyi Energy Holdings (HKG:3868), which has not only revenues, but also profits. 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 Xinyi Energy Holdings
Xinyi Energy Holdings' Earnings Per Share Are Growing
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Over the last three years, Xinyi Energy Holdings has grown EPS by 4.1% per year. This may not be setting the world alight, but it does show that EPS is on the upwards trend.
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. EBIT margins for Xinyi Energy Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 23% to HK$2.4b. That's encouraging news for the company!
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
SEHK:3868 Earnings and Revenue History August 22nd 2022
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Xinyi Energy Holdings.
Are Xinyi Energy Holdings Insiders Aligned With All Shareholders?
It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Xinyi Energy Holdings shares worth a considerable sum. We note that their impressive stake in the company is worth HK$5.0b. That equates to 20% of the company, making insiders powerful and aligned with other shareholders. Very encouraging.
Is Xinyi Energy Holdings Worth Keeping An Eye On?
One important encouraging feature of Xinyi Energy Holdings is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. These two factors are a huge highlight for the company which should be a strong contender your watchlists. Still, you should learn about the 2 warning signs we've spotted with Xinyi Energy Holdings (including 1 which is significant).
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.
對於初學者來説,收購一家向投資者講述一個好故事的公司似乎是一個好主意(也是一個令人興奮的前景),即使它目前沒有收入和利潤的記錄。有時,這些故事可能會矇蔽投資者的頭腦,導致他們以自己的情緒投資,而不是投資於良好的公司基本面。虧損的公司可能會像海綿一樣吸收資本,因此投資者應該謹慎,不要把錢一筆接一筆地往上扔。
與此形成鮮明對比的是,許多投資者更傾向於關注像信義能源控股(HKG:3868),不僅有收入,而且有利潤。雖然這並不一定意味着它是否被低估了,但該業務的盈利能力足以證明它有一定的升值價值--特別是如果它在增長的話。
查看我們對信義能源控股的最新分析
信義能源控股的每股收益正在增長
一般來説,經歷每股收益(EPS)增長的公司應該會看到類似的股價趨勢。這使得每股收益的增長對任何公司來説都是一個有吸引力的品質。在過去的三年裏,信義能源控股的每股收益以每年4.1%的速度增長。這可能不會點燃世界的光芒,但它確實表明每股收益正處於上升趨勢。
要複核一家公司的增長,一種方法是觀察其收入和息税前利潤(EBIT)的變化情況。信義能源控股的息税前利潤與去年持平,但該公司應樂於報告其收入增長23%至24億港元。這對公司來説是個鼓舞人心的消息!
下面的圖表顯示了該公司的利潤和收入是如何隨着時間的推移而變化的。點擊圖表查看確切的數字。
聯交所:3868盈利及收入歷史2022年8月22日
當然,訣竅是找到未來最好的股票,而不是過去的股票。當然,你可以根據過去的表現來發表你的觀點,但你也可能想看看這張信義能源控股公司專業分析師每股收益預測的互動圖表。
信義能源控股的內部人士是否與所有股東一致?
可以説,看到公司領導人把自己的錢拿來冒險是件令人高興的事情,因為這增加了企業經營者和真正的所有者之間的激勵一致性。內部人士持有信義能源控股價值可觀的股票,股東們將對此感到高興。我們注意到他們在該公司令人印象深刻的股份價值50億港元。這相當於公司20%的股份,這讓內部人士變得強大,並與其他股東結盟。非常鼓舞人心。
信義能源控股值得關注嗎?
信義能源控股的一個重要令人鼓舞的特點是,它的利潤在不斷增長。如果這本身還不夠,還有相當顯著的內部人持股水平。這兩個因素對該公司來説是一個巨大的亮點,它應該是你觀察名單上的一個強有力的競爭者。不過,您應該瞭解一下2個警告標誌我們已經發現了信義能源控股公司(包括1家意義重大的公司)。
總是有可能做得很好,購買股票不是不斷增長的收入和不要有內部人士購買股票。但對於那些考慮這些重要指標的人,我們建議您查看以下公司做擁有這些功能。你可以在這裏訪問它們的免費列表。
請注意,本文中討論的內幕交易指的是相關司法管轄區內的應報告交易。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。