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. 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 Banco Latinoamericano de Comercio Exterior S. A (NYSE:BLX). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Banco Latinoamericano de Comercio Exterior S. A with the means to add long-term value to shareholders.

How Fast Is Banco Latinoamericano de Comercio Exterior S. A Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. Banco Latinoamericano de Comercio Exterior S. A's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 54%. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Our analysis has highlighted that Banco Latinoamericano de Comercio Exterior S. A's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. Banco Latinoamericano de Comercio Exterior S. A maintained stable EBIT margins over the last year, all while growing revenue 39% to US$271m. That's progress.

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.

While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Banco Latinoamericano de Comercio Exterior S. A's balance sheet strength, before getting too excited.

Are Banco Latinoamericano de Comercio Exterior S. A Insiders Aligned With All Shareholders?

It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. So it is good to see that Banco Latinoamericano de Comercio Exterior S. A insiders have a significant amount of capital invested in the stock. Indeed, they hold US$34m worth of its stock. This considerable investment should help drive long-term value in the business. Even though that's only about 2.9% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.

Does Banco Latinoamericano de Comercio Exterior S. A Deserve A Spot On Your Watchlist?

Banco Latinoamericano de Comercio Exterior S. A'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. 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. Based on the sum of its parts, we definitely think its worth watching Banco Latinoamericano de Comercio Exterior S. A very closely. Even so, be aware that Banco Latinoamericano de Comercio Exterior S. A is showing 1 warning sign in our investment analysis , you should know about...

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence.

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.