For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
In contrast to all that, many investors prefer to focus on companies like Xinyi Energy Holdings (HKG:3868), which has not only revenues, but also profits. 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 Xinyi Energy Holdings
Xinyi Energy Holdings' 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, Xinyi Energy Holdings has grown EPS by 4.1% per year. This may not be setting the world alight, but it does show that EPS is on the upwards trend.
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. EBIT margins for Xinyi Energy Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 23% to HK$2.4b. That's encouraging news for the company!
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
SEHK:3868 Earnings and Revenue History August 22nd 2022
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Xinyi Energy Holdings.
Are Xinyi Energy Holdings Insiders Aligned With All Shareholders?
It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Xinyi Energy Holdings shares worth a considerable sum. We note that their impressive stake in the company is worth HK$5.0b. That equates to 20% of the company, making insiders powerful and aligned with other shareholders. Very encouraging.
Is Xinyi Energy Holdings Worth Keeping An Eye On?
One important encouraging feature of Xinyi Energy Holdings is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. These two factors are a huge highlight for the company which should be a strong contender your watchlists. Still, you should learn about the 2 warning signs we've spotted with Xinyi Energy Holdings (including 1 which is significant).
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.
对于初学者来说,收购一家向投资者讲述一个好故事的公司似乎是一个好主意(也是一个令人兴奋的前景),即使它目前没有收入和利润的记录。有时,这些故事可能会蒙蔽投资者的头脑,导致他们以自己的情绪投资,而不是投资于良好的公司基本面。亏损的公司可能会像海绵一样吸收资本,因此投资者应该谨慎,不要把钱一笔接一笔地往上扔。
与此形成鲜明对比的是,许多投资者更倾向于关注像信义能源控股(HKG:3868),不仅有收入,而且有利润。虽然这并不一定意味着它是否被低估了,但该业务的盈利能力足以证明它有一定的升值价值--特别是如果它在增长的话。
查看我们对信义能源控股的最新分析
信义能源控股的每股收益正在增长
一般来说,经历每股收益(EPS)增长的公司应该会看到类似的股价趋势。这使得每股收益的增长对任何公司来说都是一个有吸引力的品质。在过去的三年里,信义能源控股的每股收益以每年4.1%的速度增长。这可能不会点燃世界的光芒,但它确实表明每股收益正处于上升趋势。
要复核一家公司的增长,一种方法是观察其收入和息税前利润(EBIT)的变化情况。信义能源控股的息税前利润与去年持平,但该公司应乐于报告其收入增长23%至24亿港元。这对公司来说是个鼓舞人心的消息!
下面的图表显示了该公司的利润和收入是如何随着时间的推移而变化的。点击图表查看确切的数字。
联交所:3868盈利及收入历史2022年8月22日
当然,诀窍是找到未来最好的股票,而不是过去的股票。当然,你可以根据过去的表现来发表你的观点,但你也可能想看看这张信义能源控股公司专业分析师每股收益预测的互动图表。
信义能源控股的内部人士是否与所有股东一致?
可以说,看到公司领导人把自己的钱拿来冒险是件令人高兴的事情,因为这增加了企业经营者和真正的所有者之间的激励一致性。内部人士持有信义能源控股价值可观的股票,股东们将对此感到高兴。我们注意到他们在该公司令人印象深刻的股份价值50亿港元。这相当于公司20%的股份,这让内部人士变得强大,并与其他股东结盟。非常鼓舞人心。
信义能源控股值得关注吗?
信义能源控股的一个重要令人鼓舞的特点是,它的利润在不断增长。如果这本身还不够,还有相当显著的内部人持股水平。这两个因素对该公司来说是一个巨大的亮点,它应该是你观察名单上的一个强有力的竞争者。不过,您应该了解一下2个警告标志我们已经发现了信义能源控股公司(包括1家意义重大的公司)。
总是有可能做得很好,购买股票不是不断增长的收入和不要有内部人士购买股票。但对于那些考虑这些重要指标的人,我们建议您查看以下公司做拥有这些功能。你可以在这里访问它们的免费列表。
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。
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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。