Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK) Ticks All The Boxes When It Comes To Earnings Growth

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. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

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 Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK). 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.

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

How Quickly Is Qatar Islamic Bank (Q.P.S.C.) 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. That makes EPS growth an attractive quality for any company. Qatar Islamic Bank (Q.P.S.C.) managed to grow EPS by 12% per year, over three years. That's a pretty good rate, if the company can sustain it.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of Qatar Islamic Bank (Q.P.S.C.)'s revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. While we note Qatar Islamic Bank (Q.P.S.C.) achieved similar EBIT margins to last year, revenue grew by a solid 28% to ر.ق9.0b. That's progress.

The chart below shows how the company's bottom and top lines have progressed 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?

We would not expect to see insiders owning a large percentage of a ر.ق48b company like Qatar Islamic Bank (Q.P.S.C.). But we do take comfort from the fact that they are investors in the company. We note that their impressive stake in the company is worth ر.ق3.6b. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

Should You Add Qatar Islamic Bank (Q.P.S.C.) To Your Watchlist?

One positive for Qatar Islamic Bank (Q.P.S.C.) 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. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. Of course, just because Qatar Islamic Bank (Q.P.S.C.) is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Although Qatar Islamic Bank (Q.P.S.C.) 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.