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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. 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.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Keurig Dr Pepper (NASDAQ:KDP). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Keurig Dr Pepper with the means to add long-term value to shareholders.
How Fast Is Keurig Dr Pepper Growing?
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. That means EPS growth is considered a real positive by most successful long-term investors. Keurig Dr Pepper managed to grow EPS by 11% per year, over three years. That growth rate is fairly good, assuming the company can keep it up.
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. The good news is that Keurig Dr Pepper is growing revenues, and EBIT margins improved by 3.0 percentage points to 23%, over the last year. Both of which are great metrics to check off for potential growth.
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.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Keurig Dr Pepper's future profits.
Are Keurig Dr Pepper Insiders Aligned With All Shareholders?
Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, small purchases are not always indicative of conviction, and insiders don't always get it right.
Although we did see some insider selling (worth US$4.1m) this was overshadowed by a mountain of buying, totalling US$21m in just one year. This adds to the interest in Keurig Dr Pepper because it suggests that those who understand the company best, are optimistic. We also note that it was the company insider, G. Harf, who made the biggest single acquisition, paying US$5.0m for shares at about US$29.10 each.
On top of the insider buying, it's good to see that Keurig Dr Pepper insiders have a valuable investment in the business. We note that their impressive stake in the company is worth US$582m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!
Does Keurig Dr Pepper Deserve A Spot On Your Watchlist?
One important encouraging feature of Keurig Dr Pepper is that it is growing profits. Better yet, insiders are significant shareholders, and have been buying more shares. These factors alone make the company an interesting prospect for your watchlist, as well as continuing research. What about risks? Every company has them, and we've spotted 2 warning signs for Keurig Dr Pepper (of which 1 can't be ignored!) you should know about.
Keen growth investors love to see insider activity. Thankfully, Keurig Dr Pepper isn't the only one. You can see a a curated list of companies which have exhibited consistent growth accompanied by high insider ownership.
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.
もしこのような会社があなたのスタイルでなければ、売上高を上げ、利益を上げる企業が好きなら、おそらくKeurig Dr Pepper(NASDAQ: KDP)に興味があるでしょう。この企業は市場でかなり評価されていても、一貫した利益を上げ続けることが株主に長期的な価値を提供し続けると投資家は同意するでしょう。
内部者売却(4,100万ドル相当)のニュースがありましたが、それは1年間で2,100万ドルもの買い付けによって影を潜めました。これは、Keurig Dr Pepperへの関心を高める要素です。なぜなら、会社に詳しい人々が楽観的であるということを示唆しているからです。また、G. Harfという会社の内部者が最大の購入を行い、個々の株価約29.10ドルで500万ドルを支払いました。
インサイダーの買い付けに加えて、Keurig Dr Pepperの内部者がビジネスに貴重な投資をしていることは良いことです。彼らが会社に持っている印象的な持ち分は5,8200万ドル相当です。これは、経営陣が意思決定をする際に株主の利益に非常に注意を払うことを示唆しています。
キューリグドクターペッパーはお気に入りのリストに入る価値がありますか?
Keurig Dr Pepperの重要な励みとなる特徴の一つは、利益の成長です。さらに、内部関係者は大株主であり、さらに株式を買い増しています。これらの要素だけでも、会社はお気に入りのリストと継続的な調査に興味深い見込みであると言えます。では、リスクはどうでしょうか?どの会社にもリスクはありますが、Keurig Dr Pepperには注意すべき2つの警告サインがあります(そのうちの1つは無視できません!)ご存知でしょうか。
成長重視の投資家は、内部者の活動を見るのが好きです。幸いなことに、Keurig Dr Pepperだけではありません。成長を伴う一貫した業績と高い内部保有率を示している企業の厳選リストもご覧いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。