The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. 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.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like US Foods Holding (NYSE:USFD). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
US Foods Holding's Improving Profits
In the last three years US Foods Holding's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. Outstandingly, US Foods Holding's EPS shot from US$1.02 to US$2.03, over the last year. It's not often a company can achieve year-on-year growth of 100%.
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. While we note US Foods Holding achieved similar EBIT margins to last year, revenue grew by a solid 4.6% to US$36b. That's progress.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
NYSE:USFD Earnings and Revenue History April 9th 2024
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for US Foods Holding?
Are US Foods Holding Insiders Aligned With All Shareholders?
Owing to the size of US Foods Holding, we wouldn't expect insiders to hold a significant proportion of the company. 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. Indeed, they hold US$46m worth of its stock. This considerable investment should help drive long-term value in the business. Even though that's only about 0.4% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
Does US Foods Holding Deserve A Spot On Your Watchlist?
US Foods Holding's earnings per share have been soaring, with growth rates sky high. 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. Based on the sum of its parts, we definitely think its worth watching US Foods Holding very closely. Still, you should learn about the 2 warning signs we've spotted with US Foods Holding.
Although US Foods Holding certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with insider buying, then check out this handpicked selection of companies that not only boast of strong growth but have also seen recent insider buying..
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.
對一些投機者來說,投資一家能夠扭轉命運的公司是一件令人興奮的事,因此,即使是沒有收入、沒有利潤、有過虧損記錄的公司,也能設法找到投資者。但現實是,當一家公司每年虧損時,在足夠長的時間內,其投資者通常會分擔這些損失。儘管資金充足的公司可能會遭受多年的虧損,但它最終需要盈利,否則投資者將繼續前進,公司將萎縮。
儘管處於科技股藍天投資時代,但許多投資者仍然採取更傳統的策略:購買美國食品控股公司(紐約證券交易所代碼:USFD)等盈利公司的股票。儘管利潤不是投資時應考慮的唯一指標,但值得表彰能夠持續生產利潤的企業。
美國食品控股公司的利潤有所改善
在過去的三年中,美國食品控股公司的每股收益猛增;以至於用這些數字來推斷長期估計有點不誠實。因此,最好將去年的增長率分開來進行分析。出人意料的是,去年,美國食品控股的每股收益從1.02美元猛增至2.03美元。公司很少能實現100%的同比增長。
仔細考慮收入增長和息稅前收益(EBIT)利潤率有助於爲近期利潤增長的可持續性提供信息。儘管我們注意到美國食品控股公司的息稅前利潤率與去年相似,但收入穩步增長了4.6%,達到360億美元。這就是進步。
您可以在下圖中查看該公司的收入和收益增長趨勢。要獲得更詳細的細節,請點擊圖片。
紐約證券交易所:USFD 收益和收入歷史記錄 2024 年 4 月 9 日
雖然我們生活在當下,但毫無疑問,未來在投資決策過程中最重要。那麼,爲什麼不查看這張描繪美國食品控股公司未來每股收益估計值的互動圖表呢?
美國食品控股內部人士是否與所有股東保持一致?
由於美國食品控股公司的規模,我們預計內部人士不會持有該公司的很大一部分股份。但是,由於他們對公司的投資,令人高興的是,仍然有激勵措施使他們的行動與股東保持一致。事實上,他們持有價值4600萬美元的股票。這筆可觀的投資應有助於推動業務的長期價值。儘管這僅佔公司的0.4%左右,但這筆錢足以表明企業領導者和普通股東之間的一致性。
美國食品控股公司值得在您的關注清單上佔有一席之地嗎?
美國食品控股公司的每股收益一直在飆升,增長率居高不下。每股收益的增長無疑引人注目,而龐大的內部所有權只會進一步激發我們的興趣。當然,希望強勁的增長標誌着商業經濟的根本改善。綜上所述,我們絕對認爲值得密切關注美國食品控股公司。不過,你應該了解我們在美國食品控股公司發現的兩個警告信號。
儘管美國食品控股確實看起來不錯,但如果內部人士買入股票,它可能會吸引更多的投資者。如果你想看看有內幕買入的公司,那就看看這些精心挑選的公司,這些公司不僅增長強勁,而且最近也出現了內幕買盤。
請注意,本文中討論的內幕交易是指相關司法管轄區內應報告的交易。
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。