Should You Be Adding Polskie Towarzystwo Wspierania Przedsiebiorczosci (WSE:PTW) To Your Watchlist Today?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. 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. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

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). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Polskie Towarzystwo Wspierania Przedsiebiorczosci with the means to add long-term value to shareholders.

Check out our latest analysis for Polskie Towarzystwo Wspierania Przedsiebiorczosci

How Fast Is Polskie Towarzystwo Wspierania Przedsiebiorczosci Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Polskie Towarzystwo Wspierania Przedsiebiorczosci managed to grow EPS by 11% per year, over three years. That's a good rate of growth, if it can be sustained.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of Polskie Towarzystwo Wspierania Przedsiebiorczosci shareholders is that EBIT margins have grown from 5.0% to 14% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts.

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.

Since Polskie Towarzystwo Wspierania Przedsiebiorczosci is no giant, with a market capitalisation of zł52m, you should definitely check its cash and debt before getting too excited about its prospects.

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. Indeed, with a collective holding of 74%, 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. Of course, Polskie Towarzystwo Wspierania Przedsiebiorczosci is a very small company, with a market cap of only zł52m. So this large proportion of shares owned by insiders only amounts to zł38m. 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?

One positive for Polskie Towarzystwo Wspierania Przedsiebiorczosci is that it is growing EPS. That's nice to see. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. These two factors are a huge highlight for the company which should be a strong contender your watchlists. It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Polskie Towarzystwo Wspierania Przedsiebiorczosci (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies 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.