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. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Lowe's Companies (NYSE:LOW). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Lowe's Companies with the means to add long-term value to shareholders.
See our latest analysis for Lowe's Companies
How Fast Is Lowe's Companies Growing Its Earnings Per Share?
Lowe's Companies 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. Lowe's Companies' EPS skyrocketed from US$9.60 to US$13.53, in just one year; a result that's bound to bring a smile to shareholders. That's a commendable gain of 41%.
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. It was a year of stability for Lowe's Companies as both revenue and EBIT margins remained have been flat over the past year. That's not a major concern but nor does it point to the long term growth we like to see.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
NYSE:LOW Earnings and Revenue History October 24th 2022
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 Lowe's Companies.
Are Lowe's Companies Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a US$113b company like Lowe's Companies. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Holding US$86m worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders. That's certainly enough to let shareholders know that management will be very focussed on long term growth.
Is Lowe's Companies Worth Keeping An Eye On?
If you believe that share price follows earnings per share you should definitely be delving further into Lowe's Companies' strong EPS growth. With EPS growth rates like that, it's hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Lowe's Companies (1 is significant) 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.
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.
投资者往往以发现“下一个大事件”为指导,即使这意味着在没有任何收入、更不用说利润的情况下买入“故事股”。但现实是,当一家公司每年亏损时,在足够长的时间内,投资者通常会承担他们的损失份额。虽然一家资金雄厚的公司可能会亏损多年,但它最终需要创造利润,否则投资者就会离开,公司就会枯萎。
如果这种公司不是你的风格,你喜欢能产生收入,甚至能赚钱的公司,那么你很可能会对洛威的公司(纽约证券交易所:低点)。即使这家公司得到了市场的公平估值,投资者也会同意,产生持续的利润将继续为洛威的公司提供为股东增加长期价值的手段。
查看我们对洛威公司的最新分析
劳氏公司的每股收益增长速度有多快?
在过去的三年里,洛威的公司经历了每股收益的大幅增长。以至于这三年的增长率对公司的未来不是一个公平的评估。因此,我们将着眼于过去一年的增长。洛威公司的每股收益在短短一年内从9.60美元飙升至13.53美元,这一结果必然会给股东带来微笑。这是值得称赞的41%的收益。
仔细考虑收入增长和息税前利润(EBIT)利润率有助于了解最近利润增长的可持续性。对于Lowe的公司来说,这是稳定的一年,因为收入和息税前利润在过去一年里一直持平。这并不是一个主要的担忧,但它也不表明我们希望看到的长期增长。
你可以在下面的图表中看到该公司的收入和收益增长趋势。要查看实际数字,请点击图表。
纽约证券交易所:低收益和收入历史2022年10月24日
当然,诀窍是找到未来最好的股票,而不是过去的股票。当然,你可以根据过去的表现来发表你的观点,但你也可能想要查看这张专业分析师对Lowe‘s公司每股收益预测的互动图表。
洛威公司的内部人士是否与所有股东保持一致?
我们预计不会看到内部人士拥有像洛的公司这样价值1130亿美元的公司的很大比例。但由于他们对公司的投资,令人高兴的是,仍有激励措施让他们的行动与股东保持一致。持有该公司价值8600万美元的股票绝非闹着玩,内部人士将致力于为股东带来最佳结果。这当然足以让股东知道,管理层将非常关注长期增长。
洛威的公司值得密切关注吗?
如果你相信股价跟随每股收益,你肯定应该进一步研究劳氏公司强劲的每股收益增长。在这样的每股收益增长率下,公司高层通过继续持有一笔重大投资来对公司抱有信心也就不足为奇了。成长性和内部信心被看好,因此值得进一步调查,以期洞察该股的真实价值。别忘了,可能还会有风险。例如,我们已经确定洛威公司的3个警告信号(1是重要的)您应该知道。
投资的美妙之处在于,你几乎可以投资任何你想投资的公司。但如果你更愿意关注那些表现出内幕收购的股票,这里有一份过去三个月内有内幕收购的公司名单。
请注意,本文中讨论的内幕交易指的是相关司法管辖区内的应报告交易。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。