If EPS Growth Is Important To You, Alkis H. Hadjikyriacos (Frou Frou Biscuits) (CSE:FBI) Presents An Opportunity

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. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. 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.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Alkis H. Hadjikyriacos (Frou Frou Biscuits) (CSE:FBI). 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.

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How Quickly Is Alkis H. Hadjikyriacos (Frou Frou Biscuits) Increasing Earnings Per Share?

The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Shareholders will be happy to know that Alkis H. Hadjikyriacos (Frou Frou Biscuits)'s EPS has grown 24% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of Alkis H. Hadjikyriacos (Frou Frou Biscuits) shareholders is that EBIT margins have grown from 5.7% to 9.7% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

See our latest analysis for Alkis H. Hadjikyriacos (Frou Frou Biscuits)

Since Alkis H. Hadjikyriacos (Frou Frou Biscuits) is no giant, with a market capitalisation of €35m, you should definitely check its cash and debt before getting too excited about its prospects.

Are Alkis H. Hadjikyriacos (Frou Frou Biscuits) Insiders Aligned With All Shareholders?

Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that Alkis H. Hadjikyriacos (Frou Frou Biscuits) insiders own a meaningful share of the business. In fact, they own 80% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This should be seen as a good thing, as it means insiders have a personal interest in delivering the best outcomes for shareholders. With that sort of holding, insiders have about €28m riding on the stock, at current prices. That should be more than enough to keep them focussed on creating shareholder value!

Should You Add Alkis H. Hadjikyriacos (Frou Frou Biscuits) To Your Watchlist?

If you believe that share price follows earnings per share you should definitely be delving further into Alkis H. Hadjikyriacos (Frou Frou Biscuits)'s strong EPS growth. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it's a good stock to follow. It is worth noting though that we have found 4 warning signs for Alkis H. Hadjikyriacos (Frou Frou Biscuits) (1 shouldn't be ignored!) that you need to take into consideration.

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 CY 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.