Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. 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.
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 Zurn Elkay Water Solutions (NYSE:ZWS). 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 Zurn Elkay Water Solutions Increasing Earnings Per Share?
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. To the delight of shareholders, Zurn Elkay Water Solutions has achieved impressive annual EPS growth of 44%, compound, over the last three years. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.
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. While revenue is looking a bit flat, the good news is EBIT margins improved by 4.8 percentage points to 16%, in the last twelve months. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Zurn Elkay Water Solutions' future EPS 100% free.
Are Zurn Elkay Water Solutions Insiders Aligned With All Shareholders?
Since Zurn Elkay Water Solutions has a market capitalisation of US$6.0b, we wouldn't expect insiders to hold a large percentage of shares. 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. Notably, they have an enviable stake in the company, worth US$137m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.
Does Zurn Elkay Water Solutions Deserve A Spot On Your Watchlist?
Zurn Elkay Water Solutions' earnings per share growth have been climbing higher at an appreciable rate. 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. Based on the sum of its parts, we definitely think its worth watching Zurn Elkay Water Solutions very closely. If you think Zurn Elkay Water Solutions might suit your style as an investor, you could go straight to its annual report, or you could first check our discounted cash flow (DCF) valuation for the company.
Although Zurn Elkay Water Solutions 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 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.
もしこの種の企業があなたのスタイルではない場合、売上高を生み出し、利益を上げる企業が好きなら、Zurn Elkay Water Solutions(NYSE: ZWS)に興味を持つかもしれません。これは、この企業が最も優れた投資機会を提供していると言っているわけではありませんが、収益性はビジネスの成功において重要な要素です。
Zurn Elkay Water Solutionsはどれくらい速くEPSを増やしているのですか?
一般的に、EPS(1株利益)の成長を経験している企業は株価でも同様のトレンドを見るはずです。つまり、EPSの成長はほとんどの成功した長期投資家にとって真のプラスと見なされます。株主たちにとって喜ばしいことに、Zurn Elkay Water Solutionsは過去3年間で44%の印象的な年間EPS成長を実現しています。この種の成長は滅多に続かないものですが、それが起きているときには注意を払う価値があります。
投資家としての秘訣は、将来において良いパフォーマンスを発揮する企業を見つけることです。過去だけでなく、未来にも注目してください。水晶玉は存在しませんが、Zurn Elkay Water Solutionsの将来のEPSについてのコンセンサスアナリスト予測の視覚化を無料でチェックすることができます。
Zurn Elkay Water Solutionsのインサイダーは全株主と連携していますか?
Zurn Elkay Water Solutionsの時価総額が60億米ドルであるため、インサイダーが大量の株を保有しているとは予想されません。しかし、会社への投資により、彼らが株主と連携する動機がまだあることは喜ばしいことです。特筆すべきは、同社が137百万米ドル相当の同社株式を保有していることです。投資家は、経営陣がこのようなリスクを冒していることを認め、これが会社の将来に対する彼らのコミットメントを示していることを評価するでしょう。
Zurn Elkay Water Solutionsはあなたのお気に入りリストに載せる価値がありますか?
Zurn Elkay Water Solutionsの一株当たり利益成長率は、着実なペースで上昇しています。そのEPSの成長は確かに注目に値し、大規模なインサイダー保有は私たちの関心をさらに高めます。期待されるのは、もちろん、強力な成長がビジネス経済の基盤改善を示すことです。各部分の合計に基づいて、Zurn Elkay Water Solutionsの動向を非常に注意深く見る価値があると考えています。もしもZurn Elkay Water Solutionsが投資家としてのあなたのスタイルに合うと考えるなら、同社の年次報告書を直接ご覧になるか、まず当社の割引キャッシュフロー(DCF)による同社の評価額をチェックしてみてください。
Zurn Elkay Water Solutionsは確かに見栄えがいいですが、内部者が株を購入していれば投資家にもっと魅力的に映るかもしれません。ゲームへの関与が深い企業を見たい場合は、強力な成長を誇り、強力な内部者の後ろ盾を持つ企業を手選りした選択リストでチェックしてください。
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。