Yahoo Finance With EPS Growth And More, Shin Yang Shipping Corporation Berhad (KLSE:SYSCORP) Makes An Interesting Case
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. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
In contrast to all that, many investors prefer to focus on companies like Shin Yang Shipping Corporation Berhad (KLSE:SYSCORP), 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 Shin Yang Shipping Corporation Berhad
Shin Yang Shipping Corporation Berhad's Improving Profits
In business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. So a growing EPS generally brings attention to a company in the eyes of prospective investors. It's an outstanding feat for Shin Yang Shipping Corporation Berhad to have grown EPS from RM0.015 to RM0.12 in just one year. Even though that growth rate may not be repeated, that looks like a breakout improvement. Could this be a sign that the business has reached an inflection point?
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 Shin Yang Shipping Corporation Berhad shareholders is that EBIT margins have grown from 5.3% to 18% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts.
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.
Since Shin Yang Shipping Corporation Berhad is no giant, with a market capitalisation of RM957m, you should definitely check its cash and debt before getting too excited about its prospects.
Are Shin Yang Shipping Corporation Berhad Insiders Aligned With All Shareholders?
It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. So it is good to see that Shin Yang Shipping Corporation Berhad insiders have a significant amount of capital invested in the stock. As a matter of fact, their holding is valued at RM178m. That shows significant buy-in, and may indicate conviction in the business strategy. As a percentage, this totals to 19% of the shares on issue for the business, an appreciable amount considering the market cap.
Is Shin Yang Shipping Corporation Berhad Worth Keeping An Eye On?
Shin Yang Shipping Corporation Berhad's earnings have taken off in quite an impressive fashion. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So at the surface level, Shin Yang Shipping Corporation Berhad is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. You still need to take note of risks, for example - Shin Yang Shipping Corporation Berhad has 1 warning sign we think you should be aware of.
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.
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