If EPS Growth Is Important To You, Wilh. Wilhelmsen Holding (OB:WWI) Presents An Opportunity

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. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. 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.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Wilh. Wilhelmsen Holding (OB:WWI). 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.

Check out our latest analysis for Wilh. Wilhelmsen Holding

Wilh. Wilhelmsen Holding's Earnings Per Share Are Growing

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. To the delight of shareholders, Wilh. Wilhelmsen Holding has achieved impressive annual EPS growth of 39%, compound, over the last three years. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.

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. EBIT margins for Wilh. Wilhelmsen Holding remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 6.8% to US$1.0b. That's progress.

In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.

Fortunately, we've got access to analyst forecasts of Wilh. Wilhelmsen Holding's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Wilh. Wilhelmsen Holding Insiders Aligned With All Shareholders?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. 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.

We note that Wilh. Wilhelmsen Holding insiders spent US$1.6m on stock, over the last year; in contrast, we didn't see any selling. This is a good look for the company as it paints an optimistic picture for the future. We also note that it was the Independent Director, Rebekka Herlofsen, who made the biggest single acquisition, paying kr552k for shares at about kr276 each.

Should You Add Wilh. Wilhelmsen Holding To Your Watchlist?

Wilh. Wilhelmsen Holding's earnings have taken off in quite an impressive fashion. Growth-minded people will be intrigued by the incredible movement in EPS growth. And indeed, it could be a sign that the business is at an inflection point. If this is the case, then keeping a watch over Wilh. Wilhelmsen Holding could be in your best interest. It is worth noting though that we have found 1 warning sign for Wilh. Wilhelmsen Holding that you need to take into consideration.

The good news is that Wilh. Wilhelmsen Holding is not the only growth stock with insider buying. Here's a list of growth-focused companies in NO 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.

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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.