With EPS Growth And More, Oma Säästöpankki Oyj (HEL:OMASP) Makes An Interesting Case

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and 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.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Oma Säästöpankki Oyj (HEL:OMASP). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Oma Säästöpankki Oyj with the means to add long-term value to shareholders.

Check out our latest analysis for Oma Säästöpankki Oyj

Oma Säästöpankki Oyj's Earnings Per Share Are Growing

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. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Oma Säästöpankki Oyj's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 42%. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors.

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. Not all of Oma Säästöpankki Oyj's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. Oma Säästöpankki Oyj maintained stable EBIT margins over the last year, all while growing revenue 51% to €231m. That's a real positive.

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.

The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Oma Säästöpankki Oyj's future EPS 100% free.

Are Oma Säästöpankki Oyj Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. 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.

We note that Oma Säästöpankki Oyj insiders spent €157k on stock, over the last year; in contrast, we didn't see any selling. That paints the company in a nice light, as it signals that its leaders are feeling confident in where the company is heading. We also note that it was the company insider, Timo Kokkala, who made the biggest single acquisition, paying €40k for shares at about €20.11 each.

Along with the insider buying, another encouraging sign for Oma Säästöpankki Oyj is that insiders, as a group, have a considerable shareholding. As a matter of fact, their holding is valued at €18m. This considerable investment should help drive long-term value in the business. Despite being just 3.2% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.

Should You Add Oma Säästöpankki Oyj To Your Watchlist?

Oma Säästöpankki Oyj's earnings have taken off in quite an impressive fashion. What's more, insiders own a significant stake in the company and have been buying more shares. These factors seem to indicate the company's potential and that it has reached an inflection point. We'd suggest Oma Säästöpankki Oyj belongs near the top of your watchlist. We should say that we've discovered 1 warning sign for Oma Säästöpankki Oyj that you should be aware of before investing here.

Keen growth investors love to see insider buying. Thankfully, Oma Säästöpankki Oyj isn't the only one. You can see a a curated list of Finnish companies which have exhibited consistent growth accompanied by recent insider buying.

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.