If you love the growth of EPS, check out Mainfreight (NZSE: MFT) before it's too late – Simply Wall St News

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Like a puppy chasing his tail, some new investors often look for "the next big thing", even if it means buying "historic stocks" without income, not to mention profits.
But the reality is that when a business loses money every year, and long enough, its investors will bear their share of those losses.

So, if you're like me, you may be more interested in profitable growth companies, such as Main Freight (NZSE: MFT).
Even though the shares are fully valued today, most capitalists will recognize its profits as demonstrating the creation of constant value.
In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they do not always produce something when they are in a hurry.

See our latest badysis for Mainfreight

How fast is Mainfreight developing?

If you think the markets are even vaguely efficient, you expect the stock price of a company to follow its earnings per share (EPS).
Therefore, there are many investors who like to buy stocks of companies growing earnings per share.
Mainfreight has been able to increase EPS by 14% per year over three years.
This growth rate is good enough, baduming the company can maintain it.

One way to check a company's growth is to look at changes in its earnings and profit margins before interest and taxes (EBIT).
Mainfreight has maintained stable EBIT margins over the past year, while revenue has increased 17% to NZ $ 2.8 billion.
It's really positive.

The graph below shows the evolution of the lower and upper lines of the company.
Click on the graph to see the exact figures.

By investing, as in life, the future counts more than the past. So why not check this free interactive visualization of the Mainfreight solution provide benefits ?.

Are Mainfreight insiders aligned with all shareholders?

I feel safer to hold shares in a company if insiders also own shares, which further aligns our interests.
As a result, I am encouraged by the fact that insiders hold Mainfreight shares of considerable value.
They hold a huge stake in the company, valued at $ 775 million New Zealand.
This equates to 21% of the company, which makes the insiders powerful and aligned with other shareholders.
It could be my imagination, but I feel the glow of an opportunity.

Is Mainfreight worth keeping an eye on?

As I have already mentioned, Mainfreight is a growing business, and that's what I like to see.
If this is not enough, there are also quite remarkable levels of ownership by insiders.
This combination I like, for one. So yes, I think the stock deserves to be watched.
Now you can try to decide on Mainfreight by focusing only on these factors, or you could also Examine the price / earnings ratio compared to other companies in your industry.

Although I like Mainfreight, I would like it more if insiders bought shares. If you like insider shopping, too, then this free list of growing businesses purchased by insiders, could be exactly what you are looking for.

Please note that the insider transactions described in this article refer to transactions to be reported in the relevant jurisdiction.

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.