Here's Why I Think G. Willi-Food International (NASDAQ:WILC) Might Deserve Your Attention Today

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'

So if you're like me, you might be more interested in profitable, growing companies, like G. Willi-Food International (NASDAQ:WILC). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.

See our latest analysis for G. Willi-Food International

G. Willi-Food International's Improving Profits

Over the last three years, G. Willi-Food International has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like a wedge-tailed eagle on the wind, G. Willi-Food International's EPS soared from ₪2.92 to ₪3.95, in just one year. That's a commendable gain of 35%.

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. G. Willi-Food International maintained stable EBIT margins over the last year, all while growing revenue 19% to ₪448m. That's a real positive.

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.

G. Willi-Food International isn't a huge company, given its market capitalization of US$275m. That makes it extra important to check on its balance sheet strength.

Are G. Willi-Food International Insiders Aligned With All Shareholders?

It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that G. Willi-Food International insiders have a significant amount of capital invested in the stock. Indeed, they hold ₪16m worth of its stock. That's a lot of money, and no small incentive to work hard. Those holdings account for over 5.8% of the company; visible skin in the game.

Is G. Willi-Food International Worth Keeping An Eye On?

For growth investors like me, G. Willi-Food International's raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership impresses me, and suggests that I'm not the only one who appreciates the EPS growth. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. We should say that we've discovered 3 warning signs for G. Willi-Food International that you should be aware of before investing here.

Although G. Willi-Food International certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, 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. 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.
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