If You Like EPS Growth Then Check Out Intelbras - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) Before It's Too Late

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily 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.

In contrast to all that, I prefer to spend time on companies like Intelbras - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.

View our latest analysis for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira

Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's Earnings Per Share Are Growing.

If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. Impressively, Intelbras - Indústria de Telecomunicação Eletrônica Brasileira has grown EPS by 37% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be smiling.

I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's EBIT margins were flat over the last year, revenue grew by a solid 54% to R$2.9b. 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 Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's future profits.

Are Intelbras - Indústria de Telecomunicação Eletrônica Brasileira Insiders Aligned With All Shareholders?

Personally, I like to see high insider ownership of a company, since it suggests that it will be managed in the interests of shareholders. So we're pleased to report that Intelbras - Indústria de Telecomunicação Eletrônica Brasileira insiders own a meaningful share of the business. Indeed, with a collective holding of 69%, company insiders are in control and have plenty of capital behind the venture. This makes me think they will be incentivised to plan for the long term - something I like to see. And their holding is extremely valuable at the current share price, totalling R$7.1b. That means they have plenty of their own capital riding on the performance of the business!

Does Intelbras - Indústria de Telecomunicação Eletrônica Brasileira Deserve A Spot On Your Watchlist?

For growth investors like me, Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership impresses me, and suggests that I'm not the only one who appreciates the EPS growth. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. What about risks? Every company has them, and we've spotted 2 warning signs for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira (of which 1 shouldn't be ignored!) you should know about.

Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares. But as a growth investor I always like 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.