For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and 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. Loss making companies can act like a sponge for capital – so investors should be cautious that they’re not throwing good money after bad. 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 Synergy Green Industries (NSE:SGIL). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. Check out our latest analysis for Synergy Green Industries Synergy Green Industries’ Earnings Per Share Are Growing The market is a voting machine in the short term, but a weighing machine in the long term, so you’d expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Recognition must be given to the that Synergy Green Industries has grown EPS by 56% per year, over the last three years. While that sort of growth rate isn’t sustainable for long, it certainly catches the eye of prospective investors. 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. While revenue is looking a bit flat, the good news is EBIT margins improved by 2.8 percentage points to 9.1%, in the last twelve months. Which is a great look for the company. The chart below shows how the company’s bottom and top lines have progressed over time. For finer detail, click on the image. NSEI:SGIL Earnings and Revenue History October 24th 2024 Since Synergy Green Industries is no giant, with a market capitalisation of ₹5.4b, you should definitely check its cash and debt before getting too excited about its prospects. Are Synergy Green Industries 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. Synergy Green Industries followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. Indeed, they hold ₹1.7b worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 31% of the company; visible skin in the game. Is Synergy Green Industries Worth Keeping An Eye On? Synergy Green Industries’ earnings per share growth have been climbing higher at an appreciable rate. That EPS growth certainly is attention grabbing, and the large insider ownership only
Lun. Dic 23rd, 2024
