We Ran A Stock Scan For Earnings Growth And IBC POLSKA F & P spólka akcyjna (WSE:IBC) Passed With Ease

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.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in IBC POLSKA F & P spólka akcyjna (WSE:IBC). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

Check out our latest analysis for IBC POLSKA F & P spólka akcyjna

How Quickly Is IBC POLSKA F & P spólka akcyjna Increasing Earnings Per Share?

The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Recognition must be given to the that IBC POLSKA F & P spólka akcyjna has grown EPS by 40% per year, over the last three years. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.

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. While we note IBC POLSKA F & P spólka akcyjna achieved similar EBIT margins to last year, revenue grew by a solid 40% to zł9.4m. That's encouraging news for the company!

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

IBC POLSKA F & P spólka akcyjna isn't a huge company, given its market capitalisation of zł7.8m. That makes it extra important to check on its balance sheet strength.

Are IBC POLSKA F & P spólka akcyjna 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 IBC POLSKA F & P spólka akcyjna insiders own a significant number of shares certainly is appealing. Indeed, with a collective holding of 92%, company insiders are in control and have plenty of capital behind the venture. Intuition will tell you this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. Although, with IBC POLSKA F & P spólka akcyjna being valued at zł7.8m, this is a small company we're talking about. So this large proportion of shares owned by insiders only amounts to zł7.1m. This isn't an overly large holding but it should still keep the insiders motivated to deliver the best outcomes for shareholders.

Is IBC POLSKA F & P spólka akcyjna Worth Keeping An Eye On?

IBC POLSKA F & P spólka akcyjna's earnings have taken off in quite an impressive fashion. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So at the surface level, IBC POLSKA F & P spólka akcyjna is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. We should say that we've discovered 3 warning signs for IBC POLSKA F & P spólka akcyjna (2 shouldn't be ignored!) that you should be aware of before investing here.

There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a free list of them here.

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.