Is Now The Time To Put Jyske Bank (CPH:JYSK) On Your Watchlist?

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. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

In contrast to all that, many investors prefer to focus on companies like Jyske Bank (CPH:JYSK), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Jyske Bank with the means to add long-term value to shareholders.

Check out our latest analysis for Jyske Bank

Jyske Bank's Improving Profits

Jyske Bank has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. So it would be better to isolate the growth rate over the last year for our analysis. To the delight of shareholders, Jyske Bank's EPS soared from kr.42.82 to kr.62.87, over the last year. That's a impressive gain of 47%.

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. Our analysis has highlighted that Jyske Bank's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. EBIT margins for Jyske Bank remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 19% to kr.11b. That's encouraging news for the company!

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.

Fortunately, we've got access to analyst forecasts of Jyske Bank's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Jyske Bank Insiders Aligned With All Shareholders?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. Because often, 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.

It's worth noting that there was some insider selling of Jyske Bank shares last year, worth kr.149k. This falls short of the share acquisition by Independent Chairman of Supervisory Board Kurt Pedersen, who has acquired kr.817k worth of shares, at an average price of kr.528. Overall, that is something good to take away.

Recent insider purchases of Jyske Bank stock is not the only way management has kept the interests of the general public shareholders in mind. Namely, Jyske Bank has a very reasonable level of CEO pay. The median total compensation for CEOs of companies similar in size to Jyske Bank, with market caps between kr.14b and kr.44b, is around kr.16m.

The Jyske Bank CEO received kr.11m in compensation for the year ending December 2022. That comes in below the average for similar sized companies and seems pretty reasonable. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.

Does Jyske Bank Deserve A Spot On Your Watchlist?

You can't deny that Jyske Bank has grown its earnings per share at a very impressive rate. That's attractive. But wait, it gets better. We have seen insider buying and the executive pay seems on the modest side of things. The overriding message from this quick rundown is yes, this stock is worth investigating further. Even so, be aware that Jyske Bank is showing 1 warning sign in our investment analysis , you should know about...

The good news is that Jyske Bank is not the only growth stock with insider buying. Here's a list of them... with insider buying in the last three months!

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.