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.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Promotora y Operadora de Infraestructura S. A. B. de C. V (BMV:PINFRA). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Promotora y Operadora de Infraestructura S. A. B. de C. V with the means to add long-term value to shareholders.

Check out our latest analysis for Promotora y Operadora de Infraestructura S. A. B. de C. V

How Fast Is Promotora y Operadora de Infraestructura S. A. B. de C. V Growing?

If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. Impressively, Promotora y Operadora de Infraestructura S. A. B. de C. V has grown EPS by 27% 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.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Promotora y Operadora de Infraestructura S. A. B. de C. V maintained stable EBIT margins over the last year, all while growing revenue 19% to Mex$18b. That's progress.

The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.

You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Promotora y Operadora de Infraestructura S. A. B. de C. V's future profits.

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

Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So as you can imagine, the fact that Promotora y Operadora de Infraestructura S. A. B. de C. V insiders own a significant number of shares certainly is appealing. In fact, they own 50% of the shares, making insiders a very influential shareholder group. Those who are comforted by solid insider ownership like this should be happy, as it implies that those running the business are genuinely motivated to create shareholder value. At the current share price, that insider holding is worth a staggering Mex$41b. This is an incredible endorsement from them.

Is Promotora y Operadora de Infraestructura S. A. B. de C. V Worth Keeping An Eye On?

If you believe that share price follows earnings per share you should definitely be delving further into Promotora y Operadora de Infraestructura S. A. B. de C. V's strong EPS growth. With EPS growth rates like that, it's hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. However, before you get too excited we've discovered 1 warning sign for Promotora y Operadora de Infraestructura S. A. B. de C. V that you should be aware of.

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.