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.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like WillScot Mobile Mini Holdings (NASDAQ:WSC). 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 WillScot Mobile Mini Holdings

How Fast Is WillScot Mobile Mini Holdings Growing Its Earnings Per Share?

Over the last three years, WillScot Mobile Mini Holdings has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. Thus, it makes sense to focus on more recent growth rates, instead. In impressive fashion, WillScot Mobile Mini Holdings' EPS grew from US$0.98 to US$1.85, over the previous 12 months. It's a rarity to see 88% year-on-year growth like that.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The good news is that WillScot Mobile Mini Holdings is growing revenues, and EBIT margins improved by 6.4 percentage points to 28%, over the last year. Ticking those two boxes is a good sign of growth, in our book.

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

Fortunately, we've got access to analyst forecasts of WillScot Mobile Mini Holdings' future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are WillScot Mobile Mini Holdings Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a US$8.6b company like WillScot Mobile Mini Holdings. But we are reassured by the fact they have invested in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$223m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!

Does WillScot Mobile Mini Holdings Deserve A Spot On Your Watchlist?

WillScot Mobile Mini Holdings' earnings have taken off in quite an impressive fashion. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So based on this quick analysis, we do think it's worth considering WillScot Mobile Mini Holdings for a spot on your watchlist. You should always think about risks though. Case in point, we've spotted 1 warning sign for WillScot Mobile Mini Holdings you should be aware of.

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 tailored list of companies which have demonstrated growth backed by recent insider purchases.

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.