If EPS Growth Is Important To You, Vipshop Holdings (NYSE:VIPS) Presents An Opportunity
If EPS Growth Is Important To You, Vipshop Holdings (NYSE:VIPS) Presents An Opportunity
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. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
In contrast to all that, many investors prefer to focus on companies like Vipshop Holdings (NYSE:VIPS), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Vipshop Holdings with the means to add long-term value to shareholders.
View our latest analysis for Vipshop Holdings
How Quickly Is Vipshop Holdings Increasing Earnings Per Share?
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, Vipshop Holdings has grown EPS by 21% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of Vipshop Holdings' revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. While Vipshop Holdings may have maintained EBIT margins over the last year, revenue has fallen. This does not bode too well for short term growth prospects and so understanding the reasons for these results is of great importance.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
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 Vipshop Holdings?
Are Vipshop Holdings Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a US$8.5b company like Vipshop Holdings. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth CN¥1.8b. This totals to 21% of shares in the company. Enough to lead management's decision making process down a path that brings the most benefit to shareholders. Looking very optimistic for investors.
Does Vipshop Holdings Deserve A Spot On Your Watchlist?
For growth investors, Vipshop Holdings' raw rate of earnings growth is a beacon in the night. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. 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. Now, you could try to make up your mind on Vipshop Holdings by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry.
There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a free list of them here.
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.
投資一家能夠扭轉命運的公司所帶來的興奮,對一些投機者來說是一個巨大的吸引力,因此,即使是沒有收入、沒有利潤、業績不佳的公司,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,投資者通常會承擔他們的損失份額。虧損的公司可能會像海綿一樣吸收資本,因此投資者應該謹慎,不要把錢一筆接一筆地往上扔。
與此形成鮮明對比的是,許多投資者更傾向於關注像唯品會控股(紐約證券交易所代碼:VIPS),它不僅有收入,而且還有利潤。即使這家公司得到了市場的公平估值,投資者也會同意,產生持續的利潤將繼續為唯品會控股的股東提供增加長期價值的手段。
查看我們對唯品會控股的最新分析
唯品會控股的每股收益增長速度有多快?
一般來說,經歷每股收益(EPS)增長的公司應該會看到類似的股價趨勢。因此,有經驗的投資者在進行投資研究時密切關注公司每股收益是合理的。令人印象深刻的是,在過去的三年裡,唯品會控股的每股收益以每年21%的復合增長率增長。如果公司能夠保持這樣的增長,我們預計股東們會滿意地離開。
看一看息稅前利潤(EBIT)利潤率和收入增長,對了解公司增長的質量通常是有幫助的。唯品會控股今年的營收並不全是營收從運營部因此,請記住,本文中使用的收入和利潤率數位可能不是基礎業務的最佳代表。儘管唯品會在過去一年裡可能保持了息稅前利潤,但營收卻有所下降。對於短期增長前景來說,這不是一個好兆頭,因此瞭解造成這些結果的原因非常重要。
下面的圖表顯示了該公司的利潤和收入是如何隨著時間的推移而變化的。要查看更詳細的資訊,請點擊圖片。
雖然我們活在當下,但毫無疑問,在投資決策過程中,未來是最重要的。那麼,為什麼不查看這張描繪唯品會未來每股收益預估的互動圖表呢?
唯品會控股的內部人士是否與所有股東一致?
我們預計不會看到內部人士持有唯品會這樣一家價值85億美元的公司的很大比例。但我們確實感到欣慰的是,他們是該公司的投資者。值得注意的是,他們在該公司擁有令人羨慕的股份,價值18億元人民幣。這相當於該公司21%的股份。足以引導管理層的決策過程走上為股東帶來最大利益的道路。看起來對投資者來說非常樂觀。
唯品會值得被列入你的觀察名單嗎?
對於成長型投資者來說,唯品會控股的原始盈利增長率是夜裡的燈塔。這樣的每股收益增長率是該公司應該感到自豪的,因此,內部人士持有相當大一部分股票也就不足為奇了。成長性和內部信心被看好,因此值得進一步調查,以期洞察該股的真實價值。現在,你可以試著通過關注這些因素來對唯品會控股做出決定,或你可以也想一想它的本益比與同行業的其他公司相比如何。
總是有可能做得很好,購買股票不是不斷增長的收入和不要有內部人士購買股票。但對於那些考慮這些重要指標的人,我們建議您查看以下公司做擁有這些功能。你可以在這裡訪問它們的免費列表。
請注意,本文中討論的內幕交易指的是相關司法管轄區內的應報告交易。
對這篇文章有什麼反饋嗎?擔心內容嗎?保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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