If EPS Growth Is Important To You, Promotora y Operadora de Infraestructura S. A. B. de C. V (BMV:PINFRA) Presents An Opportunity

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. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

In contrast to all that, many investors prefer to focus on companies like Promotora y Operadora de Infraestructura S. A. B. de C. V (BMV:PINFRA), 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 Promotora y Operadora de Infraestructura S. A. B. de C. V

How Quickly Is Promotora y Operadora de Infraestructura S. A. B. de C. V Increasing Earnings Per Share?

If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Promotora y Operadora de Infraestructura S. A. B. de C. V has grown EPS by 32% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

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. Promotora y Operadora de Infraestructura S. A. B. de C. V shareholders can take confidence from the fact that EBIT margins are up from 57% to 63%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.

In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.

Fortunately, we've got access to analyst forecasts of Promotora y Operadora de Infraestructura S. A. B. de C. V's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Promotora y Operadora de Infraestructura S. A. B. de C. V Insiders Aligned With All Shareholders?

It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own Promotora y Operadora de Infraestructura S. A. B. de C. V shares worth a considerable sum. We note that their impressive stake in the company is worth Mex$2.7b. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

Does Promotora y Operadora de Infraestructura S. A. B. de C. V Deserve A Spot On Your Watchlist?

For growth investors, Promotora y Operadora de Infraestructura S. A. B. de C. V's raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Promotora y Operadora de Infraestructura S. A. B. de C. V's continuing strength. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Promotora y Operadora de Infraestructura S. A. B. de C. V , and understanding them should be part of your investment process.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in MX with promising growth potential and insider confidence.

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.