Do Polskie Towarzystwo Wspierania Przedsiebiorczosci's (WSE:PTW) Earnings Warrant Your Attention?

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. 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 Polskie Towarzystwo Wspierania Przedsiebiorczosci (WSE:PTW). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

Check out our latest analysis for Polskie Towarzystwo Wspierania Przedsiebiorczosci

How Quickly Is Polskie Towarzystwo Wspierania Przedsiebiorczosci Increasing Earnings Per Share?

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Shareholders will be happy to know that Polskie Towarzystwo Wspierania Przedsiebiorczosci's EPS has grown 30% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

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. Polskie Towarzystwo Wspierania Przedsiebiorczosci maintained stable EBIT margins over the last year, all while growing revenue 87% to zł83m. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

Polskie Towarzystwo Wspierania Przedsiebiorczosci isn't a huge company, given its market capitalisation of zł58m. That makes it extra important to check on its balance sheet strength.

Are Polskie Towarzystwo Wspierania Przedsiebiorczosci Insiders Aligned With All Shareholders?

Theory would suggest that it's an encouraging sign to see high insider ownership of a company, since it ties company performance directly to the financial success of its management. So those who are interested in Polskie Towarzystwo Wspierania Przedsiebiorczosci 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 74% of the company, so their decisions have a significant impact on their investments. 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. Valued at only zł58m Polskie Towarzystwo Wspierania Przedsiebiorczosci is really small for a listed company. So this large proportion of shares owned by insiders only amounts to zł43m. That might not be a huge sum but it should be enough to keep insiders motivated!

Is Polskie Towarzystwo Wspierania Przedsiebiorczosci Worth Keeping An Eye On?

For growth investors, Polskie Towarzystwo Wspierania Przedsiebiorczosci's raw rate of earnings growth is a beacon in the night. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. It is worth noting though that we have found 4 warning signs for Polskie Towarzystwo Wspierania Przedsiebiorczosci that you need to take into consideration.

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.