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. 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.
So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Jiangsu Sunshine (SHSE:600220). 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 Jiangsu Sunshine
Jiangsu Sunshine's Earnings Per Share Are Growing
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years Jiangsu Sunshine grew its EPS by 5.9% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that Jiangsu Sunshine's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. While we note Jiangsu Sunshine achieved similar EBIT margins to last year, revenue grew by a solid 3.7% to CN¥2.1b. That's a real positive.
In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.
SHSE:600220 Earnings and Revenue History September 5th 2022
While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Jiangsu Sunshine's balance sheet strength, before getting too excited.
Are Jiangsu Sunshine Insiders Aligned With All Shareholders?
It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Jiangsu Sunshine followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. We note that their impressive stake in the company is worth CN¥1.5b. That equates to 24% of the company, making insiders powerful and aligned with other shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.
Does Jiangsu Sunshine Deserve A Spot On Your Watchlist?
As previously touched on, Jiangsu Sunshine is a growing business, which is encouraging. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. Even so, be aware that Jiangsu Sunshine is showing 4 warning signs in our investment analysis , and 2 of those are a bit concerning...
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 free list of them here.
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.
投资一家能够扭转命运的公司所带来的兴奋,对一些投机者来说是一个巨大的吸引力,因此,即使是没有收入、没有利润、业绩不佳的公司,也能设法找到投资者。有时,这些故事可能会蒙蔽投资者的头脑,导致他们以自己的情绪投资,而不是投资于良好的公司基本面。虽然一家资金雄厚的公司可能会亏损多年,但它最终需要创造利润,否则投资者就会离开,公司就会枯萎。
因此,如果这种高风险和高回报的想法不适合,你可能会对盈利的、成长型的公司更感兴趣,比如江苏阳光(上交所:600220)。虽然利润不是投资时应该考虑的唯一指标,但值得表彰能够持续产生利润的企业。
查看我们对江苏阳光的最新分析
江苏阳光的每股收益在增长
如果一家公司能够在足够长的时间内保持每股收益(EPS)的增长,其股价最终应该会随之而来。这意味着,大多数成功的长期投资者认为,每股收益的增长是一个真正的积极因素。我们可以看到,在过去的三年里,江苏阳光的每股收益以每年5.9%的速度增长。这可能不是特别高的增长,但它确实表明,每股收益正在朝着正确的方向稳步前进。
仔细考虑收入增长和息税前利润(EBIT)利润率有助于了解最近利润增长的可持续性。据指出,江苏阳光的收入从运营部过去12个月的收入低于其收入,因此这可能会扭曲我们对其利润率的分析。虽然我们注意到江苏阳光实现了与去年类似的息税前利润,但收入稳步增长3.7%,至21亿加元。这是一个真正的积极因素。
在下面的图表中,你可以看到该公司如何随着时间的推移实现了收益和收入的增长。要查看更详细的信息,请点击图片。
上海证券交易所:600220收益和收入历史2022年9月5日
虽然看到利润增长总是好事,但你应该始终记住,疲软的资产负债表可能会回来产生影响。因此,在过于兴奋之前,先看看江苏阳光的资产负债表实力。
江苏阳光的内部人士是否与所有股东一致?
公司领导人以股东的最佳利益行事是必要的,因此,内部投资总是对市场起到安抚作用。江苏阳光的追随者将会感到欣慰,因为他们知道,内部人士拥有大量资本,他们的最大利益与更广泛的股东群体保持一致。我们注意到他们在该公司令人印象深刻的股份价值15亿元人民币。这相当于公司24%的股份,这让内部人士变得强大,并与其他股东结盟。因此,这里有机会投资于一家管理层具有切实激励措施的公司。
江苏阳光配得上你的观察名单吗?
正如前面提到的,江苏阳光是一项不断增长的业务,这是令人鼓舞的。如果这本身还不够,还有相当显著的内部人持股水平。这种结合非常有吸引力。因此,是的,我们确实认为这只股票值得关注。即便如此,请注意,江苏阳光正在展示我们的投资分析中的4个警告信号,其中有两个是关于...
总是有可能做得很好,购买股票不是不断增长的收入和不要有内部人士购买股票。但对于那些考虑这些重要指标的人,我们建议您查看以下公司做拥有这些功能。你可以在这里访问它们的免费列表。
请注意,本文中讨论的内幕交易指的是相关司法管辖区内的应报告交易。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。