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。雖然一家資金雄厚的公司可能會虧損多年,但它最終需要創造利潤,否則投資者就會離開,公司就會枯萎。
如果這種公司不是你的風格,你喜歡能產生收入,甚至能賺錢的公司,那麼你很可能會對江西紅牌新材料(上交所:605366)。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。
看看我們對江西紅牌新材料的最新分析
江西紅牌新材料成長有多快?
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。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,江西宏派新材料以每年16%的速度增長每股收益。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。據指出,江西紅牌新材料的收入從運營部過去12個月的收入低於其收入,因此這可能會扭曲我們對其利潤率的分析。江西宏派新材料股東可以從息税前利潤從11%上升到22%,以及收入的增長中獲得信心。在我們的書中,勾選這兩個方框是增長的一個好跡象。
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。要查看更詳細的信息,請點擊圖片。
上海證券交易所:605366收益和收入歷史2022年10月21日
雖然看到利潤增長總是好事,但你應該始終記住,疲軟的資產負債表可能會回來產生影響。因此,在過於興奮之前,先看看江西宏派新材料的資產負債表實力。
江西宏派新材料內部人士是否與全體股東一致?
如果內部人士也持有一家公司的股票,這應該會給投資者帶來一種安全感,使他們的利益緊密一致。江西紅牌新材料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,他們的最大利益與更廣泛的股東羣體保持一致。值得注意的是,他們持有該公司令人羨慕的股份,價值7.32億元人民幣。這表明,領導層在決策時會非常關注股東的利益!
江西紅牌新材料值得關注嗎?
江西紅牌新材料的一個利好消息是,它的每股收益不斷增長。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。這種結合非常有吸引力。因此,是的,我們確實認為這隻股票值得關注。你還需要注意風險,比如-江西紅牌新材料3個警示標誌(還有一點不可忽視)我們認為你應該知道這一點。
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。