Here's Why We Think Cury Construtora e Incorporadora (BVMF:CURY3) Is Well Worth Watching

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. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

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 Cury Construtora e Incorporadora (BVMF:CURY3). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Cury Construtora e Incorporadora with the means to add long-term value to shareholders.

View our latest analysis for Cury Construtora e Incorporadora

How Quickly Is Cury Construtora e Incorporadora 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 Cury Construtora e Incorporadora's EPS has grown 28% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

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. While we note Cury Construtora e Incorporadora achieved similar EBIT margins to last year, revenue grew by a solid 34% to R$3.4b. That's progress.

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 Cury Construtora e Incorporadora's future profits.

Are Cury Construtora e Incorporadora Insiders Aligned With All Shareholders?

It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. So it is good to see that Cury Construtora e Incorporadora insiders have a significant amount of capital invested in the stock. Notably, they have an enviable stake in the company, worth R$1.5b. That equates to 22% of the company, making insiders powerful and aligned with other shareholders. Very encouraging.

Does Cury Construtora e Incorporadora Deserve A Spot On Your Watchlist?

For growth investors, Cury Construtora e Incorporadora's raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Cury Construtora e Incorporadora's continuing strength. 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. You still need to take note of risks, for example - Cury Construtora e Incorporadora has 1 warning sign we think you should be aware of.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in BR with promising growth potential and insider confidence.

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.