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 can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

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 Sing Investments & Finance (SGX:S35). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Sing Investments & Finance with the means to add long-term value to shareholders.

See our latest analysis for Sing Investments & Finance

Sing Investments & Finance's 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, Sing Investments & Finance has grown EPS by 15% 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 Sing Investments & Finance's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. While we note Sing Investments & Finance achieved similar EBIT margins to last year, revenue grew by a solid 8.7% to S$65m. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

Sing Investments & Finance isn't a huge company, given its market capitalisation of S$235m. That makes it extra important to check on its balance sheet strength.

Are Sing Investments & Finance Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right.

It's nice to see that there have been no reports of any insiders selling shares in Sing Investments & Finance in the previous 12 months. Add in the fact that Sze Leong Lee, the MD, CEO & Executive Director of the company, paid S$22k for shares at around S$1.49 each. Decent buying like this could be a sign for shareholders here; management sees the company as undervalued.

On top of the insider buying, it's good to see that Sing Investments & Finance insiders have a valuable investment in the business. To be specific, they have S$27m worth of shares. This considerable investment should help drive long-term value in the business. As a percentage, this totals to 11% of the shares on issue for the business, an appreciable amount considering the market cap.

Should You Add Sing Investments & Finance To Your Watchlist?

One positive for Sing Investments & Finance is that it is growing EPS. That's nice to see. In addition, insiders have been busy adding to their sizeable holdings in the company. These factors alone make the company an interesting prospect for your watchlist, as well as continuing research. You still need to take note of risks, for example - Sing Investments & Finance has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

The good news is that Sing Investments & Finance is not the only growth stock with insider buying. Here's a list of them... 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.

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.

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