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. 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.
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 DBS Group Holdings (SGX:D05). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
How Quickly Is DBS Group Holdings Increasing Earnings Per Share?
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. Shareholders will be happy to know that DBS Group Holdings' EPS has grown 21% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Our analysis has highlighted that DBS Group 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. DBS Group Holdings maintained stable EBIT margins over the last year, all while growing revenue 10.0% to S$21b. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
SGX:D05 Earnings and Revenue History September 4th 2024
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for DBS Group Holdings?
Are DBS Group Holdings Insiders Aligned With All Shareholders?
Owing to the size of DBS Group Holdings, we wouldn't expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Indeed, they have a considerable amount of wealth invested in it, currently valued at S$303m. This comes in at 0.3% of shares in the company, which is a fair amount of a business of this size. So despite their percentage holding being low, company management still have plenty of reasons to deliver the best outcomes for investors.
Is DBS Group Holdings Worth Keeping An Eye On?
If you believe that share price follows earnings per share you should definitely be delving further into DBS Group Holdings' strong EPS growth. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. Even so, be aware that DBS Group Holdings is showing 1 warning sign in our investment analysis , you should know about...
Although DBS Group Holdings certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Singaporean companies that not only boast of strong growth but have strong insider backing.
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.
テック株の青天井ブームの時代であるにもかかわらず、多くの投資家は依然としてより伝統的な戦略を採用しており、DBS Group Holdings (SGX:D05) のような利益を上げている企業の株式を購入しています。 これは最高の投資機会がこの会社にあると言うわけではありませんが、利益性はビジネスの成功にとって重要な要素です。
DBS Group Holdings はどれくらい早く一株当たりの利益を増やしているのでしょうか?
企業が一株当たりの利益 (EPS) を十分に長い期間増やし続けることができれば、その株価も最終的には上昇していくはずです。これはどの企業にとっても魅力的な品質です。株主はDBS Group Holdings の EPS が過去3年間で年率21%の複利で成長していることを知って喜ぶでしょう。会社がこのような成長を維持できれば、株主は満足することでしょう。
企業の成長の質を別の視点から見るために、利息や税金を除いた純利益 (EBIT) の利益率や売上高の成長を見ることはしばしば役立ちます。私たちの分析では、DBS Group Holdings の事業活動による売上高が前年度の売上高のすべてを占めていないことが明らかになりましたので、利益率の分析は基礎となるビジネスを正確に反映していないかもしれません。DBS Group Holdings は前年度と比較して利益率を安定させながら、売上高を10.0%増やし、210億シンガポールドルに達しました。これは非常に良い結果です。
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。