With EPS Growth And More, Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (EPA:CIV) 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. 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. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (EPA:CIV). 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.

View our latest analysis for Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative

Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative'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. Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative managed to grow EPS by 6.7% per year, over three years. This may not be setting the world alight, but it does show that EPS is on the upwards trend.

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. Not all of Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative'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. Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative maintained stable EBIT margins over the last year, all while growing revenue 21% to €311m. That's a real positive.

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

While profitability drives the upside, prudent investors always check the balance sheet, too.

Are Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative Insiders Aligned With All Shareholders?

As a general rule, it's worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. The median total compensation for CEOs of companies similar in size to Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative, with market caps between €184m and €738m, is around €606k.

Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative's CEO took home a total compensation package worth €504k in the year leading up to 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.

Should You Add Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative To Your Watchlist?

One positive for Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative is that it is growing EPS. That's nice to see. To add to this, the modest CEO compensation should tell investors that the directors have an active interest in delivering the best for shareholders. All things considered, Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative is definitely worth taking a deeper dive into. You still need to take note of risks, for example - Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative has 1 warning sign we think you should be aware of.

Although Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative 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.