Advertisement
New Zealand markets closed
  • NZX 50

    11,699.79
    -28.27 (-0.24%)
     
  • NZD/USD

    0.6136
    +0.0015 (+0.24%)
     
  • NZD/EUR

    0.5637
    +0.0008 (+0.15%)
     
  • ALL ORDS

    8,082.30
    -67.80 (-0.83%)
     
  • ASX 200

    7,814.40
    -66.90 (-0.85%)
     
  • OIL

    80.00
    +0.77 (+0.97%)
     
  • GOLD

    2,419.80
    +34.30 (+1.44%)
     
  • NASDAQ

    18,546.23
    -11.73 (-0.06%)
     
  • FTSE

    8,420.26
    -18.39 (-0.22%)
     
  • Dow Jones

    40,003.59
    +134.21 (+0.34%)
     
  • DAX

    18,704.42
    -34.39 (-0.18%)
     
  • Hang Seng

    19,553.61
    +177.08 (+0.91%)
     
  • NIKKEI 225

    38,787.38
    -132.88 (-0.34%)
     
  • NZD/JPY

    95.4860
    +0.4250 (+0.45%)
     

Does Ta Ann Holdings Berhad (KLSE:TAANN) Deserve A Spot On Your Watchlist?

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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Ta Ann Holdings Berhad (KLSE:TAANN). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.

Check out our latest analysis for Ta Ann Holdings Berhad

How Fast Is Ta Ann Holdings Berhad Growing Its Earnings Per Share?

Ta Ann Holdings Berhad has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Impressively, Ta Ann Holdings Berhad's EPS catapulted from RM0.45 to RM0.90, over the last year. Year on year growth of 99% is certainly a sight to behold. The best case scenario? That the business has hit a true inflection point.

ADVERTISEMENT

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. The music to the ears of Ta Ann Holdings Berhad shareholders is that EBIT margins have grown from 16% to 25% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book.

In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.

earnings-and-revenue-history
earnings-and-revenue-history

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 Ta Ann Holdings Berhad.

Are Ta Ann Holdings Berhad Insiders Aligned With All Shareholders?

It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. So it is good to see that Ta Ann Holdings Berhad insiders have a significant amount of capital invested in the stock. With a whopping RM399m worth of shares as a group, insiders have plenty riding on the company's success. Amounting to 26% of the outstanding shares, indicating that insiders are also significantly impacted by the decisions they make on the behalf of the business.

Does Ta Ann Holdings Berhad Deserve A Spot On Your Watchlist?

Ta Ann Holdings Berhad's 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. Based on the sum of its parts, we definitely think its worth watching Ta Ann Holdings Berhad very closely. You still need to take note of risks, for example - Ta Ann Holdings Berhad has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Although Ta Ann Holdings Berhad 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here