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 as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like VT Industrial TechnologyLtd (SZSE:300707). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
View our latest analysis for VT Industrial TechnologyLtd
How Quickly Is VT Industrial TechnologyLtd Increasing Earnings Per Share?
The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. We can see that in the last three years VT Industrial TechnologyLtd grew its EPS by 11% 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. Not all of VT Industrial TechnologyLtd's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. While we note VT Industrial TechnologyLtd achieved similar EBIT margins to last year, revenue grew by a solid 25% to CN¥765m. That's progress.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
SZSE:300707 Earnings and Revenue History September 12th 2022
While profitability drives the upside, prudent investors always check the balance sheet, too.
Are VT Industrial TechnologyLtd 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. VT Industrial TechnologyLtd followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. We note that their impressive stake in the company is worth CN¥956m. Coming in at 29% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.
Is VT Industrial TechnologyLtd Worth Keeping An Eye On?
One positive for VT Industrial TechnologyLtd 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. 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 VT Industrial TechnologyLtd.
Although VT Industrial TechnologyLtd certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
投資一家能夠扭轉命運的公司所帶來的興奮,對一些投機者來説是一個巨大的吸引力,因此,即使是沒有收入、沒有利潤、業績不佳的公司,也能設法找到投資者。但正如彼得·林奇在華爾街上的一位“遠投幾乎永遠不會有回報。”虧損的公司總是在爭分奪秒地實現財務可持續性,因此這些公司的投資者可能承擔了比他們應該承擔的更多的風險。
因此,如果這種高風險和高回報的想法不適合,你可能會對盈利的、成長型的公司更感興趣,比如VT工業技術有限公司(SZSE:300707)。現在,這並不是説該公司提供了最好的投資機會,但盈利能力是商業成功的關鍵組成部分。
查看我們對VT工業技術有限公司的最新分析
VT工業技術有限公司每股收益的增長速度有多快?
市場在短期內是一臺投票機,但從長期來看是一臺稱重機,所以你可以預期股價最終會跟隨每股收益(EPS)的結果。因此,有很多投資者喜歡購買每股收益不斷增長的公司的股票。我們可以看到,在過去的三年裏,VT工業技術有限公司的每股收益以每年11%的速度增長。這是一個相當不錯的比率,如果公司能夠維持下去的話。
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。VT工業技術有限公司今年的收入並不全是收入從運營部因此,請記住,本文中使用的收入和利潤率數字可能不是基礎業務的最佳代表。雖然我們注意到VT工業技術有限公司實現了與去年類似的EBIT利潤率,但收入穩步增長25%,達到7.65億加元。這就是進步。
你可以在下面的圖表中看到該公司的收入和收益增長趨勢。點擊圖表查看確切的數字。
SZSE:300707收益和收入歷史2022年9月12日
雖然盈利能力推動了上行,但謹慎的投資者總是會檢查資產負債表。
VT工業技術有限公司的內部人員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。VT Industrial TechnologyLtd的追隨者將會感到欣慰,因為他們知道內部人士擁有大量資本,這些資本將他們的最佳利益與更廣泛的股東羣體保持一致。我們注意到,他們在該公司令人印象深刻的股份價值9.56億元人民幣。持股佔公司業務的29%,這給內部人士帶來了很大的影響力,也有足夠的理由為股東創造價值。因此,這裏有機會投資於一家管理層具有切實激勵措施的公司。
VT工業技術有限公司值得關注嗎?
VT工業技術有限公司的一個積極因素是每股收益不斷增長。很高興見到你。對於那些希望獲得更多回報的人來説,高水平的內部人持股增強了我們對這一增長的熱情。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個警告標誌我們發現了VT工業技術有限公司。
儘管VT Industrial TechnologyLtd看起來肯定不錯,但如果內部人士買入股票,它可能會吸引更多的投資者。如果你想看到內幕交易,那麼這本書免費內部人士正在收購的成長型公司名單,可能正是你正在尋找的。
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。