Here's Why I Think Firan Technology Group (TSE:FTG) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'

In contrast to all that, I prefer to spend time on companies like Firan Technology Group (TSE:FTG), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.

Check out our latest analysis for Firan Technology Group

How Fast Is Firan Technology Group Growing Its Earnings Per Share?

Over the last three years, Firan Technology Group has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. As a result, I'll zoom in on growth over the last year, instead. Like a falcon taking flight, Firan Technology Group's EPS soared from CA$0.097 to CA$0.15, over the last year. That's a impressive gain of 57%.

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. Firan Technology Group's EBIT margins are flat but, of some concern, its revenue is actually down. Suffice it to say that is not a great sign of growth.

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.

Since Firan Technology Group is no giant, with a market capitalization of CA$70m, so you should definitely check its cash and debt before getting too excited about its prospects.

Are Firan Technology Group Insiders Aligned With All Shareholders?

Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

Not only did Firan Technology Group insiders refrain from selling stock during the year, but they also spent CA$66k buying it. That puts the company in a nice light, as it makes me think its leaders are feeling confident. It is also worth noting that it was CFO, VP & Corporate Secretary Jamie Crichton who made the biggest single purchase, worth CA$21k, paying CA$2.12 per share.

Is Firan Technology Group Worth Keeping An Eye On?

You can't deny that Firan Technology Group has grown its earnings per share at a very impressive rate. That's attractive. The growth rate whets my appetite for research, and the insider buying only increases my interest in the stock. So on this analysis I believe Firan Technology Group is probably worth spending some time on. We should say that we've discovered 4 warning signs for Firan Technology Group that you should be aware of before investing here.

As a growth investor I do like to see insider buying. But Firan Technology Group isn't the only one. You can see a 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. 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.
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