If EPS Growth Is Important To You, Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna (WSE:PKO) Presents An Opportunity

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna (WSE:PKO). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna with the means to add long-term value to shareholders.

View our latest analysis for Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna

How Quickly Is Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna Increasing Earnings Per Share?

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. Shareholders will be happy to know that Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's EPS has grown 34% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied.

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. Our analysis has highlighted that Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. EBIT margins for Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 43% to zł20b. 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.

Fortunately, we've got access to analyst forecasts of Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna Insiders Aligned With All Shareholders?

It's a good habit to check into a company's remuneration policies to ensure that the CEO and management team aren't putting their own interests before that of the shareholder with excessive salary packages. Our analysis has discovered that the median total compensation for the CEOs of companies like Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna, with market caps over zł32b, is about zł2.2m.

The CEO of Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna was paid just zł143k in total compensation for the year ending December 2022. This total may indicate that the CEO is sacrificing take home pay for performance-based benefits, ensuring that their motivations are synonymous with strong company results. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.

Should You Add Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna To Your Watchlist?

For growth investors, Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's raw rate of earnings growth is a beacon in the night. The fast growth bodes well while the very reasonable CEO pay assists builds some confidence in the board. Based on these factors, this stock may well deserve a spot on your watchlist, or even a little further research. It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna , and understanding them should be part of your investment process.

Although Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with insider buying, then check out this handpicked selection of Polish companies that not only boast of strong growth but have also seen recent insider 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.