Should You Be Adding Dalata Hotel Group (ISE:DHG) To Your Watchlist Today?

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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

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 Dalata Hotel Group (ISE:DHG). 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 Dalata Hotel Group

How Fast Is Dalata Hotel Group Growing Its Earnings Per Share?

Dalata Hotel Group has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Dalata Hotel Group's EPS skyrocketed from €0.32 to €0.41, in just one year; a result that's bound to bring a smile to shareholders. That's a commendable gain of 30%.

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. The music to the ears of Dalata Hotel Group shareholders is that EBIT margins have grown from 20% to 25% in the last 12 months and revenues are on an upwards trend as well. 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. To see the actual numbers, click on the chart.

Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Dalata Hotel Group.

Are Dalata Hotel Group Insiders Aligned With All Shareholders?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

Not only did Dalata Hotel Group insiders refrain from selling stock during the year, but they also spent €143k buying it. That's nice to see, because it suggests insiders are optimistic. It is also worth noting that it was CEO & Executive Director Dermot Crowley who made the biggest single purchase, worth €44k, paying €4.60 per share.

Is Dalata Hotel Group Worth Keeping An Eye On?

You can't deny that Dalata Hotel Group has grown its earnings per share at a very impressive rate. That's attractive. Growth in EPS isn't the only striking feature with company insiders adding to their holdings being another noteworthy vote of confidence for the company. So on this analysis, Dalata Hotel Group is probably worth spending some time on. However, before you get too excited we've discovered 1 warning sign for Dalata Hotel Group that you should be aware of.

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Dalata Hotel Group, you'll probably love this free list of growing companies that insiders are 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.