Do Atlantska Plovidba d.d's (ZGSE:ATPL) Earnings Warrant Your Attention?

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.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Atlantska Plovidba d.d (ZGSE:ATPL). 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.

Check out our latest analysis for Atlantska Plovidba d.d

Atlantska Plovidba d.d's Improving Profits

Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. So for many budding investors, improving EPS is considered a good sign. Commendations have to be given in seeing that Atlantska Plovidba d.d grew its EPS from Kn66.16 to Kn360, in one short year. While it's difficult to sustain growth at that level, it bodes well for the company's outlook for the future. This could point to the business hitting a point of inflection.

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. The good news is that Atlantska Plovidba d.d is growing revenues, and EBIT margins improved by 8.3 percentage points to 45%, over the last year. Both of which are great metrics to check off for potential growth.

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.

Atlantska Plovidba d.d isn't a huge company, given its market capitalisation of €75m. That makes it extra important to check on its balance sheet strength.

Are Atlantska Plovidba d.d Insiders Aligned With All Shareholders?

It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Shareholders will be pleased by the fact that insiders own Atlantska Plovidba d.d shares worth a considerable sum. To be specific, they have Kn22m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. 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 Atlantska Plovidba d.d To Your Watchlist?

Atlantska Plovidba d.d's earnings per share have been soaring, with growth rates sky high. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So based on this quick analysis, we do think it's worth considering Atlantska Plovidba d.d for a spot on your watchlist. It is worth noting though that we have found 3 warning signs for Atlantska Plovidba d.d (1 is significant!) that you need to take into consideration.

Although Atlantska Plovidba d.d 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.