It’s common for many investors, especially inexperienced investors, to buy shares in companies with good stories, even if they’re in the red.But as Peter Lynch said One up on Wall Street, “The long shot pays little.” Loss-making companies can act like capital sponges. So investors should be careful not to throw bad money after bad money.
So if this high-risk high-reward mentality doesn’t suit you, you could be interested in profitable and growing companies such as: United Plantation Belhad (KLSE:UTDPLT). Even if this company were fairly valued in the market, investors would agree that generating consistent returns would continue to provide United Plantation Berhad with a means of adding long-term value to its shareholders.
See the latest analysis from United Plantations Berhad
How fast is United Plantations Berhad growing?
In general, companies with increasing earnings per share (EPS) should see a similar trend in their share prices. That makes EPS growth an attractive quality for any company. It is certainly impressive that United Plantations Berhad has delivered his EPS growth of 27% per annum over his three years. In principle, if companies can catch up, That With some kind of growth, shareholders will be radiant.
A careful examination of earnings growth and earnings before interest and tax (EBIT) margins provides insight into the sustainability of recent earnings growth. United Plantations Berhad maintained his stable EBIT margin last year, growing earnings by 44% to RM2.6b. This is encouraging news for the company.
In the chart below you can see how the company has grown its revenue and earnings over time. Click on the graph to see the actual numbers.
More profits are always good, but you should always remember that a weak balance sheet can hurt you again. Before you get too excited, check out the strength of United Plantations Berhad’s balance sheet.
Are United Plantations Berhad insiders aligned with all shareholders?
It’s kind of a pleasure to see a company’s management pouring money into it. That’s because there is more alignment of incentives between the people running the business and its true owners. So it’s good that United Plantations Berhad’s insiders have invested a lot of capital in the stock. Given that the insiders currently own a large amount of shares worth RM297 million, they have ample motivation to make the business a success. This should keep them focused on creating long-term value for their shareholders.
Is United Plantations Berhad worthy of your attention?
For growth investors, United Plantations Berhad’s net profit growth is a beacon of the night. Additionally, the insider’s ownership is impressive, suggesting that management appreciates his EPS growth and has confidence in United Plantations Berhad’s continued strength. Rapid growth and confident insiders should be enough to justify further research.It is worth noting that we discovered One warning sign for United Plantations Berhad what you need to consider.
The great thing about investing is that you can invest in almost any company you want. But if you want to focus on stocks that have shown insider buying, here is a list of companies that have had insider buying in the last three months.
Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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