Does Wilh. Wilhelmsen Holding (OB:WWI) Deserve A Spot On Your Watchlist?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

In contrast to all that, many investors prefer to focus on companies like Wilh. Wilhelmsen Holding (OB:WWI), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Wilh. Wilhelmsen Holding with the means to add long-term value to shareholders.

View our latest analysis for Wilh. Wilhelmsen Holding

How Fast Is Wilh. Wilhelmsen Holding Growing Its Earnings Per Share?

In the last three years Wilh. Wilhelmsen Holding's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. As a result, we'll zoom in on growth over the last year, instead. It's good to see that Wilh. Wilhelmsen Holding's EPS has grown from US$4.26 to US$4.80 over twelve months. There's little doubt shareholders would be happy with that 13% gain.

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. Wilh. Wilhelmsen Holding maintained stable EBIT margins over the last year, all while growing revenue 7.9% to US$973m. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.

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 Wilh. Wilhelmsen Holding's future profits.

Are Wilh. Wilhelmsen Holding 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. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

Not only did Wilh. Wilhelmsen Holding insiders refrain from selling stock during the year, but they also spent US$2.0m buying it. That's nice to see, because it suggests insiders are optimistic. We also note that it was the Independent Director, Ulrika Laurin, who made the biggest single acquisition, paying kr883k for shares at about kr221 each.

The good news, alongside the insider buying, for Wilh. Wilhelmsen Holding bulls is that insiders (collectively) have a meaningful investment in the stock. As a matter of fact, their holding is valued at US$255m. That shows significant buy-in, and may indicate conviction in the business strategy. While their ownership only accounts for 2.2%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.

Should You Add Wilh. Wilhelmsen Holding To Your Watchlist?

One positive for Wilh. Wilhelmsen Holding is that it is growing EPS. That's nice to see. In addition, insiders have been busy adding to their sizeable holdings in the company. That should do plenty in prompting budding investors to undertake a bit more research - or even adding the company to their watchlists. Even so, be aware that Wilh. Wilhelmsen Holding is showing 1 warning sign in our investment analysis , you should know about...

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Wilh. Wilhelmsen Holding, you'll probably love this free list of growing companies that insiders are buying.

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.