It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. 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 Do-Fluoride New Materials (SZSE:002407). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
View our latest analysis for Do-Fluoride New Materials
How Fast Is Do-Fluoride New Materials Growing Its Earnings Per Share?
Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. So for many budding investors, improving EPS is considered a good sign. Commendations have to be given in seeing that Do-Fluoride New Materials grew its EPS from CN¥0.20 to CN¥2.51, in one short year. While it's difficult to sustain growth at that level, it bodes well for the company's outlook for the future. This could point to the business hitting a point of inflection.
Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Not all of Do-Fluoride New Materials' revenue last year was 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. The music to the ears of Do-Fluoride New Materials shareholders is that EBIT margins have grown from 3.0% to 25% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
SZSE:002407 Earnings and Revenue History July 24th 2022
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Do-Fluoride New Materials?
Are Do-Fluoride New Materials Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a CN¥36b company like Do-Fluoride New Materials. But we are reassured by the fact they have invested in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at CN¥5.6b. That equates to 16% of the company, making insiders powerful and aligned with other shareholders. Looking very optimistic for investors.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Our quick analysis into CEO remuneration would seem to indicate they are. For companies with market capitalisations between CN¥27b and CN¥81b, like Do-Fluoride New Materials, the median CEO pay is around CN¥1.8m.
Do-Fluoride New Materials offered total compensation worth CN¥1.5m to its CEO in the year to December 2021. That comes in below the average for similar sized companies and seems pretty reasonable. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.
Does Do-Fluoride New Materials Deserve A Spot On Your Watchlist?
Do-Fluoride New Materials' earnings per share have been soaring, with growth rates sky high. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The strong EPS improvement suggests the businesses is humming along. Do-Fluoride New Materials certainly ticks a few boxes, so we think it's probably well worth further consideration. Still, you should learn about the 3 warning signs we've spotted with Do-Fluoride New Materials (including 1 which doesn't sit too well with us).
Although Do-Fluoride New Materials 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.
对于许多投资者,尤其是那些缺乏经验的投资者来说,购买有好故事的公司的股票是很常见的,即使这些公司在亏损。不幸的是,这些高风险的投资往往不太可能获得回报,许多投资者为此付出了代价。亏损的公司总是在争分夺秒地实现财务可持续性,因此这些公司的投资者可能承担了比他们应该承担的更多的风险。
尽管处于科技股蓝天投资的时代,许多投资者仍采取更传统的策略;购买盈利的公司的股票,如DO-氟化物新材料(SZSE:002407)。虽然利润不是投资时应该考虑的唯一指标,但值得表彰能够持续产生利润的企业。
查看我们对含氟新材料的最新分析
氟化物新材料的每股收益增长速度有多快?
投资者和投资基金追逐利润,这意味着股价往往会上涨,每股收益(EPS)结果也是积极的。因此,对于许多初出茅庐的投资者来说,每股收益的改善被认为是一个好迹象。不得不称赞的是,在短短一年的时间里,DO-氟化物新材料的每股收益从0.20元增长到了2.51元。虽然很难维持这一水平的增长,但这对该公司的未来前景来说是个好兆头。这可能表明该业务已触及拐点。
营收增长是一个很好的指标,表明增长是可持续的,再加上高息税前利润(EBIT)利润率,这是一家公司在市场上保持竞争优势的绝佳方式。DO-氟化物新材料去年的收入并不全是运营收入因此,请记住,本文中使用的收入和利润率数字可能不是基础业务的最佳代表。过去12个月里,息税前利润从3.0%增长到25%,收入也呈上升趋势,这对那些不相信氟化物新材料的股东来说是一件好事。无论从哪方面来看,这都是一件好事。
你可以在下面的图表中看到该公司的收入和收益增长趋势。要查看实际数字,请点击图表。
SZSE:002407收益和收入历史2022年7月24日
虽然我们活在当下,但毫无疑问,在投资决策过程中,未来是最重要的。那么,为什么不检查一下这张描绘未来每股收益估计的互动图表,看看是否有无氟新材料?
DO-氟化物新材料内部人士是否与所有股东一致?
我们不希望看到内部人士拥有像DO-氟化物新材料这样一家360亿元人民币的公司的很大比例。但让我们放心的是,他们对该公司进行了投资。事实上,他们有相当数量的财富投资于此,目前价值56亿元人民币。这相当于公司16%的股份,这让内部人士变得强大,并与其他股东结盟。看起来对投资者来说非常乐观。
看到内部人士投资公司是件好事,但薪酬水平合理吗?我们对CEO薪酬的快速分析似乎表明,情况的确如此。对于市值在270亿加元至810亿加元之间的公司,如多氟新材料,CEO薪酬中值约为180万加元。
在截至2021年12月的一年里,多氟新材料向其首席执行官提供了价值150万加元的总薪酬。这低于类似规模公司的平均水平,似乎相当合理。虽然CEO的薪酬水平不应该是人们如何看待公司的最大因素,但适度的薪酬是一个积极的因素,因为它表明董事会考虑到了股东的利益。在更广泛的意义上,它也可以是一种诚信文化的标志。
DO-氟化物新材料值得列入你的观察名单吗?
含氟新材料的每股收益一直在飙升,增长率达到了极高的水平。最重要的是,内部人士持有大量股票,首席执行官的薪酬似乎真的相当合理。每股收益的强劲改善表明,企业进展顺利。去氟新材料肯定有几个选择,所以我们认为它可能很值得进一步考虑。不过,您应该了解一下3个警示标志我们已经发现了不含氟的新材料(包括1种不太受我们欢迎的材料)。
尽管含氟新材料看起来确实不错,但如果内部人士买入股票,它可能会吸引更多的投资者。如果你想看到内幕交易,那么这本书免费内部人士正在收购的成长型公司名单,可能正是你正在寻找的。
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。