Is Now The Time To Put Harboes Bryggeri (CPH:HARB B) 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. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. 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 Harboes Bryggeri (CPH:HARB B), 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.
Check out our latest analysis for Harboes Bryggeri
How Fast Is Harboes Bryggeri Growing Its Earnings Per Share?
Over the last three years, Harboes Bryggeri has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. Harboes Bryggeri's EPS shot up from kr.9.67 to kr.14.84; a result that's bound to keep shareholders happy. That's a impressive gain of 53%.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for Harboes Bryggeri remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 6.7% to kr.1.9b. That's a real positive.
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.
Since Harboes Bryggeri is no giant, with a market capitalisation of kr.598m, you should definitely check its cash and debt before getting too excited about its prospects.
Are Harboes Bryggeri Insiders Aligned With All Shareholders?
It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Harboes Bryggeri followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at kr.181m. That's a lot of money, and no small incentive to work hard. As a percentage, this totals to 30% of the shares on issue for the business, an appreciable amount considering the market cap.
Should You Add Harboes Bryggeri To Your Watchlist?
For growth investors, Harboes Bryggeri's raw rate of earnings growth is a beacon in the night. With EPS growth rates like that, it's hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. However, before you get too excited we've discovered 2 warning signs for Harboes Bryggeri that you should be aware of.
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 DK with promising growth potential and insider confidence.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Valuation is complex, but we're here to simplify it.
Discover if Harboes Bryggeri might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About CPSE:HARB B
Harboes Bryggeri
Develops, produces, and markets beverages and malt-based food ingredients worldwide.
Flawless balance sheet with proven track record.