We Ran A Stock Scan For Earnings Growth And WillScot Mobile Mini Holdings (NASDAQ:WSC) Passed With Ease

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. 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.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like WillScot Mobile Mini Holdings (NASDAQ:WSC). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide WillScot Mobile Mini Holdings with the means to add long-term value to shareholders.

Check out our latest analysis for WillScot Mobile Mini Holdings

How Fast Is WillScot Mobile Mini Holdings Growing Its Earnings Per Share?

Over the last three years, WillScot Mobile Mini Holdings has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. Thus, it makes sense to focus on more recent growth rates, instead. Impressively, WillScot Mobile Mini Holdings' EPS catapulted from US$0.66 to US$1.55, over the last year. It's a rarity to see 134% year-on-year growth like that. Shareholders will be hopeful that this is a sign of the company reaching an inflection point.

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. WillScot Mobile Mini Holdings shareholders can take confidence from the fact that EBIT margins are up from 19% to 25%, and revenue is growing. Both of which are great metrics to check off for potential growth.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for WillScot Mobile Mini Holdings.

Are WillScot Mobile Mini Holdings Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a US$9.0b company like WillScot Mobile Mini Holdings. But we are reassured by the fact they have invested in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$202m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!

Does WillScot Mobile Mini Holdings Deserve A Spot On Your Watchlist?

WillScot Mobile Mini Holdings' earnings per share growth have been climbing higher at an appreciable rate. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So based on this quick analysis, we do think it's worth considering WillScot Mobile Mini Holdings for a spot on your watchlist. Even so, be aware that WillScot Mobile Mini Holdings is showing 1 warning sign in our investment analysis , you should know about...

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.