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. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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.
In contrast to all that, many investors prefer to focus on companies like Knight-Swift Transportation Holdings (NYSE:KNX), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
See our latest analysis for Knight-Swift Transportation Holdings
Knight-Swift Transportation Holdings' Earnings Per Share Are Growing
The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That makes EPS growth an attractive quality for any company. Impressively, Knight-Swift Transportation Holdings has grown EPS by 31% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.
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. Our analysis has highlighted that Knight-Swift Transportation Holdings' revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. EBIT margins for Knight-Swift Transportation Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 44% to US$7.2b. 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.
NYSE:KNX Earnings and Revenue History September 6th 2022
Fortunately, we've got access to analyst forecasts of Knight-Swift Transportation Holdings' future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.
Are Knight-Swift Transportation Holdings Insiders Aligned With All Shareholders?
Since Knight-Swift Transportation Holdings has a market capitalisation of US$8.1b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Notably, they have an enviable stake in the company, worth US$415m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.
It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Well, based on the CEO pay, you'd argue that they are indeed. For companies with market capitalisations between US$4.0b and US$12b, like Knight-Swift Transportation Holdings, the median CEO pay is around US$8.4m.
Knight-Swift Transportation Holdings offered total compensation worth US$6.3m to its CEO in the year to December 2021. That seems pretty reasonable, especially given it's below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.
Should You Add Knight-Swift Transportation Holdings To Your Watchlist?
You can't deny that Knight-Swift Transportation Holdings has grown its earnings per share at a very impressive rate. That's attractive. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the key takeaway is that Knight-Swift Transportation Holdings is worth keeping an eye on. Before you take the next step you should know about the 2 warning signs for Knight-Swift Transportation Holdings (1 is concerning!) that we have uncovered.
Although Knight-Swift Transportation Holdings 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。但正如彼得·林奇在华尔街上的一位“远投几乎永远不会有回报。”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。
与此形成鲜明对比的是,许多投资者更倾向于关注像骑士-斯威夫特运输控股公司(纽约证券交易所股票代码:KNX),它不仅有收入,而且还有利润。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Knight-Swift Transportation Holdings的最新分析
骑士-斯威夫特运输控股公司每股收益不断增长
市场在短期内是一台投票机,但从长期来看是一台称重机,所以你可以预期股价最终会跟随每股收益(EPS)的结果。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。令人印象深刻的是,Knight-Swift Transportation Holdings在过去三年中以每年31%的复合增长率增长每股收益。如果这样的增长持续到未来,那么股东们将有很多值得微笑的地方。
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。我们的分析强调了骑士-斯威夫特运输控股公司的收入从运营部未计入其前12个月的全部收入,因此我们对其利润率的分析可能无法准确反映基础业务。骑士-斯威夫特运输控股公司的息税前利润与去年相比基本保持不变,但该公司应该很高兴地报告其收入增长44%至72亿美元。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。
纽约证券交易所:KNX收益和收入历史2022年9月6日
幸运的是,我们已经获得了Knight-Swift Transportation Holdings的分析师预测。未来利润。你可以不看就做你自己的预测,或者你可以偷看一下专业人士的预测。
Knight-Swift Transportation Holdings的内部人员是否与所有股东一致?
由于Knight-Swift Transportation Holdings的市值为81亿美元,我们预计内部人士不会持有很大比例的股份。但让我们放心的是,他们对该公司进行了投资。值得注意的是,他们在该公司持有令人羡慕的股份,价值4.15亿美元。投资者将感谢管理层参与到这场游戏中来,因为这表明了他们对公司未来的承诺。
看到内部人士投资于这项业务意义重大,但股东们可能会想,薪酬政策是否符合他们的最佳利益。嗯,根据CEO的薪酬,你会说他们确实是这样的。对于市值在40亿美元至120亿美元之间的公司,如骑士-斯威夫特运输控股公司,首席执行官的薪酬中值约为840万美元。
在截至2021年12月的一年里,Knight-Swift Transportation Holdings向其首席执行官提供了价值630万美元的总薪酬。这似乎相当合理,特别是考虑到它低于类似规模公司的中值。CEO薪酬很难说是一家公司最重要的考虑因素,但当薪酬合理时,这会让人更有信心相信,领导层是在为股东利益着想。更广泛地说,这也可能是良好治理的标志。
您是否应该将Knight-Swift Transportation Holdings添加到您的观察名单中?
你不能否认,骑士-斯威夫特运输控股公司的每股收益以非常惊人的速度增长。这很吸引人。如果你在每股收益增长率之外还需要更多说服力,别忘了合理的薪酬和高额的内部人士持股。这可能只是一个快速的总结,但关键的外卖是骑士-斯威夫特运输控股公司值得关注。在进行下一步之前,您应该了解骑士-斯威夫特运输控股公司的2个警告标志(1是关于!)我们已经发现了。
尽管Knight-Swift Transportation Holdings看起来当然不错,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。