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. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

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 Tiong Nam Logistics Holdings Berhad (KLSE:TNLOGIS). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Tiong Nam Logistics Holdings Berhad with the means to add long-term value to shareholders.

See our latest analysis for Tiong Nam Logistics Holdings Berhad

How Fast Is Tiong Nam Logistics Holdings Berhad Growing Its Earnings Per Share?

Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. So a growing EPS generally brings attention to a company in the eyes of prospective investors. It's an outstanding feat for Tiong Nam Logistics Holdings Berhad to have grown EPS from RM0.0079 to RM0.055 in just one year. While it's difficult to sustain growth at that level, it bodes well for the company's outlook for the future.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Tiong Nam Logistics Holdings Berhad shareholders can take confidence from the fact that EBIT margins are up from 9.1% to 13%, and revenue is growing. Both of which are great metrics to check off for potential growth.

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 Tiong Nam Logistics Holdings Berhad is no giant, with a market capitalisation of RM373m, you should definitely check its cash and debt before getting too excited about its prospects.

Are Tiong Nam Logistics Holdings Berhad Insiders Aligned With All Shareholders?

It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. So it is good to see that Tiong Nam Logistics Holdings Berhad insiders have a significant amount of capital invested in the stock. Indeed, they hold RM115m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. As a percentage, this totals to 31% of the shares on issue for the business, an appreciable amount considering the market cap.

Is Tiong Nam Logistics Holdings Berhad Worth Keeping An Eye On?

Tiong Nam Logistics Holdings Berhad's earnings per share have been soaring, with growth rates sky high. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So based on this quick analysis, we do think it's worth considering Tiong Nam Logistics Holdings Berhad for a spot on your watchlist. However, before you get too excited we've discovered 2 warning signs for Tiong Nam Logistics Holdings Berhad (1 is potentially serious!) that 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.