I Built A List Of Growing Companies And Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK) Made The Cut

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 completely lacks a track record of revenue and profit. And in their study titled Who Falls Prey to the Wolf of Wall Street?' Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.

In contrast to all that, I prefer to spend time on companies like Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.

Check out our latest analysis for Qatar Islamic Bank (Q.P.S.C.)

Qatar Islamic Bank (Q.P.S.C.)'s Earnings Per Share Are Growing.

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). It's no surprise, then, that I like to invest in companies with EPS growth. We can see that in the last three years Qatar Islamic Bank (Q.P.S.C.) grew its EPS by 9.6% per year. 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. I note that Qatar Islamic Bank (Q.P.S.C.)'s revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. It seems Qatar Islamic Bank (Q.P.S.C.) is pretty stable, since revenue and EBIT margins are pretty flat year on year. That's not bad, but it doesn't point to ongoing future growth, either.

In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Qatar Islamic Bank (Q.P.S.C.)'s forecast profits?

Are Qatar Islamic Bank (Q.P.S.C.) Insiders Aligned With All Shareholders?

Since Qatar Islamic Bank (Q.P.S.C.) has a market capitalization of ر.ق47b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at ر.ق2.8b. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions!

Is Qatar Islamic Bank (Q.P.S.C.) Worth Keeping An Eye On?

As I already mentioned, Qatar Islamic Bank (Q.P.S.C.) is a growing business, which is what I like to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. We don't want to rain on the parade too much, but we did also find 1 warning sign for Qatar Islamic Bank (Q.P.S.C.) that you need to be mindful of.

Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares. But as a growth investor I always like 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.