If EPS Growth Is Important To You, Kancelaria Prawna-Inkaso WEC Spólka Akcyjna (WSE:KPI) Presents An Opportunity

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. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Kancelaria Prawna-Inkaso WEC Spólka Akcyjna (WSE:KPI). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Kancelaria Prawna-Inkaso WEC Spólka Akcyjna with the means to add long-term value to shareholders.

See our latest analysis for Kancelaria Prawna-Inkaso WEC Spólka Akcyjna

How Fast Is Kancelaria Prawna-Inkaso WEC Spólka Akcyjna Growing Its Earnings Per Share?

Kancelaria Prawna-Inkaso WEC Spólka Akcyjna has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. So it would be better to isolate the growth rate over the last year for our analysis. Outstandingly, Kancelaria Prawna-Inkaso WEC Spólka Akcyjna's EPS shot from zł0.079 to zł0.17, over the last year. It's a rarity to see 117% year-on-year growth like that. That could be a sign that the business has reached a true inflection point.

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. Kancelaria Prawna-Inkaso WEC Spólka Akcyjna shareholders can take confidence from the fact that EBIT margins are up from 19% to 27%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

Kancelaria Prawna-Inkaso WEC Spólka Akcyjna isn't a huge company, given its market capitalisation of zł13m. That makes it extra important to check on its balance sheet strength.

Are Kancelaria Prawna-Inkaso WEC 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 those who are interested in Kancelaria Prawna-Inkaso WEC Spólka Akcyjna will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. To be exact, company insiders hold 89% of the company, so their decisions have a significant impact on their investments. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. Valued at only zł13m Kancelaria Prawna-Inkaso WEC Spólka Akcyjna is really small for a listed company. So this large proportion of shares owned by insiders only amounts to zł12m. That might not be a huge sum but it should be enough to keep insiders motivated!

Is Kancelaria Prawna-Inkaso WEC Spólka Akcyjna Worth Keeping An Eye On?

Kancelaria Prawna-Inkaso WEC Spólka Akcyjna's earnings per share have been soaring, with growth rates sky high. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching Kancelaria Prawna-Inkaso WEC Spólka Akcyjna very closely. Before you take the next step you should know about the 4 warning signs for Kancelaria Prawna-Inkaso WEC Spólka Akcyjna (2 are significant!) that we have uncovered.

Although Kancelaria Prawna-Inkaso WEC Spólka Akcyjna certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

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.