It’s only natural that many investors, especially those who are new to the game, prefer to buy shares in ‘sexy’ stocks with a good story, even if those businesses lose money. And in their study titled Who Falls Prey to the Wolf of Wall Street?’ Leuz et. al. found that it is ‘quite common’ for investors to lose money by buying into ‘pump and dump’ schemes.
So if you’re like me, you might be more interested in profitable, growing companies, like Voss Veksel- og Landmandsbank (OB:VVL). While that doesn’t make the shares worth buying at any price, you can’t deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
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View our latest analysis for Voss Veksel- og Landmandsbank
How Quickly Is Voss Veksel- og Landmandsbank 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). That means EPS growth is considered a real positive by most successful long-term investors. Impressively, Voss Veksel- og Landmandsbank has grown EPS by 33% per year, compound, in the last three years. As a general rule, we’d say that if a company can keep up that sort of growth, shareholders will be smiling.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. I note that Voss Veksel- og Landmandsbank’s revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. Voss Veksel- og Landmandsbank maintained stable EBIT margins over the last year, all while growing revenue 21% to øre104m. That’s progress.
The chart below shows how the company’s bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Voss Veksel- og Landmandsbank’s forecast profits?
Are Voss Veksel- og Landmandsbank Insiders Aligned With All Shareholders?
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
Over the last 12 months Voss Veksel- og Landmandsbank insiders spent øre641k more buying shares than they received from selling them. On balance, that’s a good sign. Zooming in, we can see that the biggest insider purchase was by Bård Gjerde for øre163k worth of shares, at about øre159 per share.
Should You Add Voss Veksel- og Landmandsbank To Your Watchlist?
For growth investors like me, Voss Veksel- og Landmandsbank’s raw rate of earnings growth is a beacon in the night. Not only is that growth rate rather juicy, but the insider buying makes my mouth water. To put it succinctly; Voss Veksel- og Landmandsbank is a strong candidate for your watchlist. Of course, just because Voss Veksel- og Landmandsbank is growing does not mean it is undervalued. If you’re wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
The good news is that Voss Veksel- og Landmandsbank is not the only growth stock with insider buying. Here’s a a list of them… with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.