If EPS Growth Is Important To You, HELLENiQ ENERGY Holdings (ATH:ELPE) Presents An Opportunity

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. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

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 HELLENiQ ENERGY Holdings (ATH:ELPE). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide HELLENiQ ENERGY Holdings with the means to add long-term value to shareholders.

See our latest analysis for HELLENiQ ENERGY Holdings

How Fast Is HELLENiQ ENERGY Holdings Growing Its Earnings Per Share?

Over the last three years, HELLENiQ ENERGY Holdings 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. HELLENiQ ENERGY Holdings' EPS shot up from €1.73 to €2.29; a result that's bound to keep shareholders happy. That's a impressive gain of 32%.

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. EBIT margins for HELLENiQ ENERGY Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 44% to €15b. That's progress.

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.

While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for HELLENiQ ENERGY Holdings?

Are HELLENiQ ENERGY Holdings Insiders Aligned With All Shareholders?

It's a good habit to check into a company's remuneration policies to ensure that the CEO and management team aren't putting their own interests before that of the shareholder with excessive salary packages. Our analysis has discovered that the median total compensation for the CEOs of companies like HELLENiQ ENERGY Holdings with market caps between €1.8b and €5.8b is about €1.8m.

HELLENiQ ENERGY Holdings' CEO took home a total compensation package worth €1.2m 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 HELLENiQ ENERGY Holdings To Your Watchlist?

For growth investors, HELLENiQ ENERGY Holdings' raw rate of earnings growth is a beacon in the night. The fast growth bodes well while the very reasonable CEO pay assists builds some confidence in the board. Based on these factors, this stock may well deserve a spot on your watchlist, or even a little further research. Still, you should learn about the 3 warning signs we've spotted with HELLENiQ ENERGY Holdings (including 1 which doesn't sit too well with us).

There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a free list of them here.

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.