With EPS Growth And More, Almondz Global Securities (NSE:ALMONDZ) Makes An Interesting Case

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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 Almondz Global Securities (NSE:ALMONDZ), which has not only revenues, but also profits. While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

Check out our latest analysis for Almondz Global Securities

Almondz Global Securities' Earnings Per Share Are Growing

The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That means EPS growth is considered a real positive by most successful long-term investors. Impressively, Almondz Global Securities has grown EPS by 20% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied.

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. Not all of Almondz Global Securities' 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. While we note Almondz Global Securities achieved similar EBIT margins to last year, revenue grew by a solid 53% to ₹1.1b. That's encouraging news for the company!

In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.

Since Almondz Global Securities is no giant, with a market capitalisation of ₹4.2b, you should definitely check its cash and debt before getting too excited about its prospects.

Are Almondz Global Securities Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

The ₹317k worth of shares that insiders sold during the last 12 months pales in comparison to the ₹145m they spent on acquiring shares in the company. This bodes well for Almondz Global Securities as it highlights the fact that those who are important to the company having a lot of faith in its future. It is also worth noting that it was company insider Subhash Rathod who made the biggest single purchase, worth ₹124m, paying ₹152 per share.

Is Almondz Global Securities Worth Keeping An Eye On?

You can't deny that Almondz Global Securities 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. To put it succinctly; Almondz Global Securities is a strong candidate for your watchlist. We don't want to rain on the parade too much, but we did also find 3 warning signs for Almondz Global Securities that you need to be mindful of.

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Almondz Global Securities, you'll probably love this curated collection of companies in IN that have an attractive valuation alongside insider buying in the last three months.

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