We Ran A Stock Scan For Earnings Growth And Upsurge Seeds Of Agriculture (NSE:USASEEDS) Passed With Ease

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.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Upsurge Seeds Of Agriculture (NSE:USASEEDS). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Upsurge Seeds Of Agriculture with the means to add long-term value to shareholders.

See our latest analysis for Upsurge Seeds Of Agriculture

How Quickly Is Upsurge Seeds Of Agriculture Increasing Earnings Per Share?

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Recognition must be given to the that Upsurge Seeds Of Agriculture has grown EPS by 45% per year, over the last three years. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors.

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. While we note Upsurge Seeds Of Agriculture achieved similar EBIT margins to last year, revenue grew by a solid 75% to ₹1.3b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

Upsurge Seeds Of Agriculture isn't a huge company, given its market capitalisation of ₹2.9b. That makes it extra important to check on its balance sheet strength.

Are Upsurge Seeds Of Agriculture Insiders Aligned With All Shareholders?

Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. 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.

With strong conviction, Upsurge Seeds Of Agriculture insiders have stood united by refusing to sell shares over the last year. But the real excitement comes from the ₹12m that company insider Kemin Sankharva spent buying shares (at an average price of about ₹549). It seems at least one insider has seen potential in the company's future - and they're willing to put money on the line.

These recent buys aren't the only encouraging sign for shareholders, as a look at the shareholder registry for Upsurge Seeds Of Agriculture will reveal that insiders own a significant piece of the pie. To be exact, company insiders hold 71% of the company, so their decisions have a significant impact on their investments. Intuition will tell you this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. To give you an idea, the value of insiders' holdings in the business are valued at ₹2.0b at the current share price. So there's plenty there to keep them focused!

Does Upsurge Seeds Of Agriculture Deserve A Spot On Your Watchlist?

Upsurge Seeds Of Agriculture's earnings per share growth have been climbing higher at an appreciable rate. The cherry on top is that insiders own a bunch of shares, and one has been buying more. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Upsurge Seeds Of Agriculture deserves timely attention. What about risks? Every company has them, and we've spotted 2 warning signs for Upsurge Seeds Of Agriculture (of which 1 is concerning!) you should know about.

Keen growth investors love to see insider buying. Thankfully, Upsurge Seeds Of Agriculture isn't the only one. You can see a 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.