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. 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. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Jiangsu Sunshine (SHSE:600220). 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 Jiangsu Sunshine
Jiangsu Sunshine's Earnings Per Share Are Growing
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years Jiangsu Sunshine grew its EPS by 5.9% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that Jiangsu Sunshine'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 Jiangsu Sunshine achieved similar EBIT margins to last year, revenue grew by a solid 3.7% to CN¥2.1b. That's a real positive.
In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.
SHSE:600220 Earnings and Revenue History September 5th 2022
While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Jiangsu Sunshine's balance sheet strength, before getting too excited.
Are Jiangsu Sunshine Insiders Aligned With All Shareholders?
It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Jiangsu Sunshine followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. We note that their impressive stake in the company is worth CN¥1.5b. That equates to 24% of the company, making insiders powerful and aligned with other shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.
Does Jiangsu Sunshine Deserve A Spot On Your Watchlist?
As previously touched on, Jiangsu Sunshine is a growing business, which is encouraging. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. Even so, be aware that Jiangsu Sunshine is showing 4 warning signs in our investment analysis , and 2 of those are a bit concerning...
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.
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.
投資一家能夠扭轉命運的公司所帶來的興奮,對一些投機者來説是一個巨大的吸引力,因此,即使是沒有收入、沒有利潤、業績不佳的公司,也能設法找到投資者。有時,這些故事可能會矇蔽投資者的頭腦,導致他們以自己的情緒投資,而不是投資於良好的公司基本面。雖然一家資金雄厚的公司可能會虧損多年,但它最終需要創造利潤,否則投資者就會離開,公司就會枯萎。
因此,如果這種高風險和高回報的想法不適合,你可能會對盈利的、成長型的公司更感興趣,比如江蘇陽光(上交所:600220)。雖然利潤不是投資時應該考慮的唯一指標,但值得表彰能夠持續產生利潤的企業。
查看我們對江蘇陽光的最新分析
江蘇陽光的每股收益在增長
如果一家公司能夠在足夠長的時間內保持每股收益(EPS)的增長,其股價最終應該會隨之而來。這意味着,大多數成功的長期投資者認為,每股收益的增長是一個真正的積極因素。我們可以看到,在過去的三年裏,江蘇陽光的每股收益以每年5.9%的速度增長。這可能不是特別高的增長,但它確實表明,每股收益正在朝着正確的方向穩步前進。
仔細考慮收入增長和息税前利潤(EBIT)利潤率有助於瞭解最近利潤增長的可持續性。據指出,江蘇陽光的收入從運營部過去12個月的收入低於其收入,因此這可能會扭曲我們對其利潤率的分析。雖然我們注意到江蘇陽光實現了與去年類似的息税前利潤,但收入穩步增長3.7%,至21億加元。這是一個真正的積極因素。
在下面的圖表中,你可以看到該公司如何隨着時間的推移實現了收益和收入的增長。要查看更詳細的信息,請點擊圖片。
上海證券交易所:600220收益和收入歷史2022年9月5日
雖然看到利潤增長總是好事,但你應該始終記住,疲軟的資產負債表可能會回來產生影響。因此,在過於興奮之前,先看看江蘇陽光的資產負債表實力。
江蘇陽光的內部人士是否與所有股東一致?
公司領導人以股東的最佳利益行事是必要的,因此,內部投資總是對市場起到安撫作用。江蘇陽光的追隨者將會感到欣慰,因為他們知道,內部人士擁有大量資本,他們的最大利益與更廣泛的股東羣體保持一致。我們注意到他們在該公司令人印象深刻的股份價值15億元人民幣。這相當於公司24%的股份,這讓內部人士變得強大,並與其他股東結盟。因此,這裏有機會投資於一家管理層具有切實激勵措施的公司。
江蘇陽光配得上你的觀察名單嗎?
正如前面提到的,江蘇陽光是一項不斷增長的業務,這是令人鼓舞的。如果這本身還不夠,還有相當顯著的內部人持股水平。這種結合非常有吸引力。因此,是的,我們確實認為這隻股票值得關注。即便如此,請注意,江蘇陽光正在展示我們的投資分析中的4個警告信號,其中有兩個是關於...
總是有可能做得很好,購買股票不是不斷增長的收入和不要有內部人士購買股票。但對於那些考慮這些重要指標的人,我們建議您查看以下公司做擁有這些功能。你可以在這裏訪問它們的免費列表。
請注意,本文中討論的內幕交易指的是相關司法管轄區內的應報告交易。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。