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. 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.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Jiangxi Copper (HKG:358). 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.
See our latest analysis for Jiangxi Copper
How Fast Is Jiangxi Copper Growing?
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Jiangxi Copper has grown EPS by 35% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Jiangxi Copper maintained stable EBIT margins over the last year, all while growing revenue 18% to CN¥471b. That's a real positive.
In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.
SEHK:358 Earnings and Revenue History September 14th 2022
You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Jiangxi Copper's future profits.
Are Jiangxi Copper Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a HK$54b company like Jiangxi Copper. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. To be specific, they have CN¥369m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that's only about 0.7% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
Does Jiangxi Copper Deserve A Spot On Your Watchlist?
For growth investors, Jiangxi Copper's raw rate of earnings growth is a beacon in the night. With EPS growth rates like that, it's hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. You still need to take note of risks, for example - Jiangxi Copper has 1 warning sign we think you should be aware of.
The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.
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。但現實是,當一家公司每年虧損時,在足夠長的時間內,投資者通常會承擔他們的損失份額。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。
儘管處於科技股藍天投資的時代,許多投資者仍採取更傳統的策略;購買盈利的公司的股票,如江西銅業股份(HKG:358)。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。
參見我們對江西銅業股份的最新分析
江西銅業股份成長的速度有多快?
如果一家公司能夠在足夠長的時間內保持每股收益(EPS)的增長,其股價最終應該會隨之而來。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。令人印象深刻的是,在過去的三年裏,江西銅業股份的每股收益以每年35%的複合增長率增長。一般來説,我們會説,如果一家公司能夠跟上那在某種程度上的增長,股東們將喜氣洋洋。
仔細考慮收入增長和息税前利潤(EBIT)利潤率有助於瞭解最近利潤增長的可持續性。江西銅業股份去年保持了穩定的息税前利潤,同時收入增長了18%,達到4710億元人民幣。這是一個真正的積極因素。
在下面的圖表中,你可以看到該公司如何隨着時間的推移實現了收益和收入的增長。點擊圖表查看確切的數字。
聯交所:358盈利及收入歷史2022年9月14日
你開車的時候眼睛不會盯着後視鏡,所以你可能會對這個更感興趣免費顯示分析師對江西銅業股份預測的報告未來利潤。
江西銅業股份的內部人士是否與所有股東一致?
我們預計不會看到內部人士持有江西銅業股份這樣一家市值540億港元的公司的很大比例。但由於他們對公司的投資,令人高興的是,仍有激勵措施讓他們的行動與股東保持一致。具體地説,他們擁有價值3.69億元人民幣的股票。這顯示出大量買入,並可能表明對商業戰略的信心。儘管這隻佔公司約0.7%的股份,但這筆錢足以表明企業領導人和普通股東之間的關係。
江西銅業股份值得被列入你的觀察名單嗎?
對於成長型投資者來説,江西銅業股份的原始盈利增速是夜裏的燈塔。在這樣的每股收益增長率下,公司高層通過繼續持有一筆重大投資來對公司抱有信心也就不足為奇了。成長性和內部信心被看好,因此值得進一步調查,以期洞察該股的真實價值。你還是需要注意風險,比如-江西銅業股份有1個警告標誌我們認為你應該意識到。
投資的美妙之處在於,你幾乎可以投資任何你想投資的公司。但如果你更願意關注那些表現出內幕收購的股票,這裏有一份過去三個月內有內幕收購的公司名單。
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。