Is Now The Time To Put E.SUN Financial Holding Company (TWSE:2884) On Your Watchlist?

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. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

In contrast to all that, many investors prefer to focus on companies like E.SUN Financial Holding Company (TWSE:2884), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

See our latest analysis for E.SUN Financial Holding Company

How Fast Is E.SUN Financial Holding Company Growing?

If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. Over the last three years, E.SUN Financial Holding Company has grown EPS by 4.4% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. It's noted that E.SUN Financial Holding Company's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. While we note E.SUN Financial Holding Company achieved similar EBIT margins to last year, revenue grew by a solid 21% to NT$64b. That's encouraging news for the company!

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.

The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for E.SUN Financial Holding Company's future EPS 100% free.

Are E.SUN Financial Holding Company Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a NT$443b company like E.SUN Financial Holding Company. But we are reassured by the fact they have invested in the company. Notably, they have an enviable stake in the company, worth NT$4.4b. While that is a lot of skin in the game, we note this holding only totals to 1.0% of the business, which is a result of the company being so large. So despite their percentage holding being low, company management still have plenty of reasons to deliver the best outcomes for investors.

Is E.SUN Financial Holding Company Worth Keeping An Eye On?

As previously touched on, E.SUN Financial Holding Company is a growing business, which is encouraging. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. The combination definitely favoured by investors so consider keeping the company on a watchlist. You still need to take note of risks, for example - E.SUN Financial Holding Company has 1 warning sign we think you should be aware of.

Although E.SUN Financial Holding Company certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with insider buying, then check out this handpicked selection of Taiwanese companies that not only boast of strong growth but have also seen recent insider buying..

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.