We Ran A Stock Scan For Earnings Growth And Münchener Rückversicherungs-Gesellschaft in München (ETR:MUV2) Passed With Ease

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. 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.

In contrast to all that, many investors prefer to focus on companies like Münchener Rückversicherungs-Gesellschaft in München (ETR:MUV2), which has not only revenues, but also profits. 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 Münchener Rückversicherungs-Gesellschaft in München

How Quickly Is Münchener Rückversicherungs-Gesellschaft in München Increasing Earnings Per Share?

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years Münchener Rückversicherungs-Gesellschaft in München grew its EPS by 4.7% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.

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. It's noted that, last year, Münchener Rückversicherungs-Gesellschaft in München's revenue from operations was lower than its revenue, so that could distort our analysis of its margins. EBIT margins for Münchener Rückversicherungs-Gesellschaft in München remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 3.4% to €64b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Münchener Rückversicherungs-Gesellschaft in München.

Are Münchener Rückversicherungs-Gesellschaft in München Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a €33b company like Münchener Rückversicherungs-Gesellschaft in München. But we are reassured by the fact they have invested in the company. Indeed, they hold €15m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. While their ownership only accounts for 0.05%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.

Does Münchener Rückversicherungs-Gesellschaft in München Deserve A Spot On Your Watchlist?

As previously touched on, Münchener Rückversicherungs-Gesellschaft in München is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. You should always think about risks though. Case in point, we've spotted 2 warning signs for Münchener Rückversicherungs-Gesellschaft in München you should be aware of, and 1 of them is a bit concerning.

Although Münchener Rückversicherungs-Gesellschaft in München certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

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.