The excitement of investing in companies whose fortunes can be reversed is a major draw for some speculators. So even a company with no revenue, no profit, and a record of shortfalls can still find investors. Unfortunately, these risky investments often have little chance of paying off, and many investors pay a price to learn a lesson. Loss-making firms have yet to prove profitable and may eventually dry up the influx of external capital.
Despite being in an era of blue-sky investing in tech stocks, many investors are still adopting more traditional strategies.buy shares in profitable companies such as Tri-mode system (M) Berhad (KLSE: try mode). Profit isn’t the only metric to consider when making an investment, but it’s worth recognizing companies that can consistently generate profits.
See the latest analysis of the Tri-Mode System (M) Berhad.
Improved profitability of Tri-Mode System (M) Berhad
Over the past three years, Tri-Mode System (M) Berhad has grown earnings per share (EPS) from a relatively low point at an impressive rate. As a result, three-year percentage growth rates are not particularly indicative of expected future performance. As a result, we will instead zoom in on last year’s growth. Impressively, the Tri-Mode System (M) Berhad’s EPS jumped from RM0.032 to RM0.067 last year. The 109% year-over-year growth rate is certainly impressive.
One way to reassess a company’s growth is to look at how its revenue and earnings before interest (EBIT) margins are changing. Tri-Mode System (M) Berhad increased revenue by 24% last year while maintaining his EBIT margin stable, taking him to RM142 million. It’s progress.
In the chart below you can see how the company has grown its revenue and earnings over time. Click on the graph to see exact numbers.
Tri-Mode System (M) Berhad is not a behemoth with a market cap of RM65m, so cash and debt needs to be checked. Previous Too excited about the prospect.
Is the Tri-Mode System (M) Berhad insider aligned with all shareholders?
High insider ownership is considered by many to be a strong sign of alignment between a company’s leaders and public shareholders. As you can imagine, the fact that Tri-Mode System (M) Berhad insiders own a sizeable stake is certainly attractive. In fact, it is controlled by company insiders who own 87% of the shares, and there is ample capital behind the venture. This should be viewed as a good thing as it means that the insider has a personal interest in achieving the best possible results for shareholders. Of course, Tri-Mode System (M) Berhad is a very small company with a market capitalization of just RM65m. Therefore, despite a large proportionate holding, insiders say he only has shares worth RM57m. This may not be a lot of money, but it should be enough to keep insiders motivated!
Should I add the Tri-Mode System (M) Berhad to my watchlist?
Tri-Mode System (M) Berhad’s earnings per share growth is increasing at a significant rate. That his EPS growth is certainly attention-grabbing, and the big insider ownership only helps fuel our interest even more. Rapid growth in EPS can be a sign that the business has reached an inflection point, so there could be an opportunity here. So at the surface level, the Tri-Mode System (M) Berhad deserves a place on your watchlist. After all, shareholders are doing well when the market undervalues fast-growing companies. For example, Tri-Mode System (M) Berhad should be aware of the risks. two warning signs I think you should know.
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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