Do Mordechai Aviv Taasiot Beniyah (1973)'s (TLV:AVIV) Earnings Warrant Your Attention?

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

In contrast to all that, many investors prefer to focus on companies like Mordechai Aviv Taasiot Beniyah (1973) (TLV:AVIV), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

View our latest analysis for Mordechai Aviv Taasiot Beniyah (1973)

How Fast Is Mordechai Aviv Taasiot Beniyah (1973) Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Over the last three years, Mordechai Aviv Taasiot Beniyah (1973) has grown EPS by 12% per year. That's a pretty good rate, if the company can sustain it.

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. EBIT margins for Mordechai Aviv Taasiot Beniyah (1973) remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 180% to ₪336m. That's encouraging news for the company!

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.

Since Mordechai Aviv Taasiot Beniyah (1973) is no giant, with a market capitalisation of ₪170m, you should definitely check its cash and debt before getting too excited about its prospects.

Are Mordechai Aviv Taasiot Beniyah (1973) Insiders Aligned With All Shareholders?

Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So we're pleased to report that Mordechai Aviv Taasiot Beniyah (1973) insiders own a meaningful share of the business. To be exact, company insiders hold 87% of the company, so their decisions have a significant impact on their investments. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. To give you an idea, the value of insiders' holdings in the business are valued at ₪148m at the current share price. That should be more than enough to keep them focussed on creating shareholder value!

Does Mordechai Aviv Taasiot Beniyah (1973) Deserve A Spot On Your Watchlist?

One positive for Mordechai Aviv Taasiot Beniyah (1973) is that it is growing EPS. That's nice to see. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. The combination definitely favoured by investors so consider keeping the company on a watchlist. Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Mordechai Aviv Taasiot Beniyah (1973) (2 are a bit concerning) you should be aware of.

Although Mordechai Aviv Taasiot Beniyah (1973) certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Israeli companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com