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.
對於許多投資者,尤其是那些缺乏經驗的投資者來説,購買有好故事的公司的股票是很常見的,即使這些公司在虧損。但正如彼得·林奇在華爾街上的一位“遠投幾乎永遠不會有回報。”虧損的公司總是在爭分奪秒地實現財務可持續性,因此這些公司的投資者可能承擔了比他們應該承擔的更多的風險。
與此形成鮮明對比的是,許多投資者更傾向於關注像騎士-斯威夫特運輸控股公司(紐約證券交易所股票代碼:KNX),它不僅有收入,而且還有利潤。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Knight-Swift Transportation Holdings的最新分析
騎士-斯威夫特運輸控股公司每股收益不斷增長
市場在短期內是一臺投票機,但從長期來看是一臺稱重機,所以你可以預期股價最終會跟隨每股收益(EPS)的結果。這使得每股收益的增長對任何公司來説都是一個有吸引力的品質。令人印象深刻的是,Knight-Swift Transportation Holdings在過去三年中以每年31%的複合增長率增長每股收益。如果這樣的增長持續到未來,那麼股東們將有很多值得微笑的地方。
要複核一家公司的增長,一種方法是觀察其收入和息税前利潤(EBIT)的變化情況。我們的分析強調了騎士-斯威夫特運輸控股公司的收入從運營部未計入其前12個月的全部收入,因此我們對其利潤率的分析可能無法準確反映基礎業務。騎士-斯威夫特運輸控股公司的息税前利潤與去年相比基本保持不變,但該公司應該很高興地報告其收入增長44%至72億美元。這對公司來説是個鼓舞人心的消息!
下面的圖表顯示了該公司的利潤和收入是如何隨着時間的推移而變化的。點擊圖表查看確切的數字。
紐約證券交易所:KNX收益和收入歷史2022年9月6日
幸運的是,我們已經獲得了Knight-Swift Transportation Holdings的分析師預測。未來利潤。你可以不看就做你自己的預測,或者你可以偷看一下專業人士的預測。
Knight-Swift Transportation Holdings的內部人員是否與所有股東一致?
由於Knight-Swift Transportation Holdings的市值為81億美元,我們預計內部人士不會持有很大比例的股份。但讓我們放心的是,他們對該公司進行了投資。值得注意的是,他們在該公司持有令人羨慕的股份,價值4.15億美元。投資者將感謝管理層參與到這場遊戲中來,因為這表明了他們對公司未來的承諾。
看到內部人士投資於這項業務意義重大,但股東們可能會想,薪酬政策是否符合他們的最佳利益。嗯,根據CEO的薪酬,你會説他們確實是這樣的。對於市值在40億美元至120億美元之間的公司,如騎士-斯威夫特運輸控股公司,首席執行官的薪酬中值約為840萬美元。
在截至2021年12月的一年裏,Knight-Swift Transportation Holdings向其首席執行官提供了價值630萬美元的總薪酬。這似乎相當合理,特別是考慮到它低於類似規模公司的中值。CEO薪酬很難説是一家公司最重要的考慮因素,但當薪酬合理時,這會讓人更有信心相信,領導層是在為股東利益着想。更廣泛地説,這也可能是良好治理的標誌。
您是否應該將Knight-Swift Transportation Holdings添加到您的觀察名單中?
你不能否認,騎士-斯威夫特運輸控股公司的每股收益以非常驚人的速度增長。這很吸引人。如果你在每股收益增長率之外還需要更多説服力,別忘了合理的薪酬和高額的內部人士持股。這可能只是一個快速的總結,但關鍵的外賣是騎士-斯威夫特運輸控股公司值得關注。在進行下一步之前,您應該瞭解騎士-斯威夫特運輸控股公司的2個警告標誌(1是關於!)我們已經發現了。
儘管Knight-Swift Transportation Holdings看起來當然不錯,但如果內部人士買入股票,它可能會吸引更多的投資者。如果你想看到內幕交易,那麼這本書免費內部人士正在收購的成長型公司名單,可能正是你正在尋找的。
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。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
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。