If You Like EPS Growth Then Check Out Northview Apartment Real Estate Investment Trust (TSE:NVU.UN) Before It's Too Late
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. And in their study titled Who Falls Prey to the Wolf of Wall Street?' Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Northview Apartment Real Estate Investment Trust (TSE:NVU.UN). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
See our latest analysis for Northview Apartment Real Estate Investment Trust
How Fast Is Northview Apartment Real Estate Investment Trust Growing Its Earnings Per Share?
Over the last three years, Northview Apartment Real Estate Investment Trust has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like the last firework on New Year's Eve accelerating into the sky, Northview Apartment Real Estate Investment Trust's EPS shot from CA$2.65 to CA$4.90, over the last year. Year on year growth of 85% is certainly a sight to behold.
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. Northview Apartment Real Estate Investment Trust maintained stable EBIT margins over the last year, all while growing revenue 10% to CA$382m. 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.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Northview Apartment Real Estate Investment Trust's future profits.
Are Northview Apartment Real Estate Investment Trust Insiders Aligned With All Shareholders?
Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
Northview Apartment Real Estate Investment Trust insiders both bought and sold shares over the last twelve months, but they did end up spending CA$7.0k more on stock than they received from selling it. When you weigh that up, it is a mild positive, indicating increased alignment between shareholders and management.
Along with the insider buying, another encouraging sign for Northview Apartment Real Estate Investment Trust is that insiders, as a group, have a considerable shareholding. With a whopping CA$114m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth.
While insiders already own a significant amount of shares, and they have been buying more, the good news for ordinary shareholders does not stop there. That's because on our analysis the CEO, Todd Cook, is paid less than the median for similar sized companies. For companies with market capitalizations between CA$1.3b and CA$4.2b, like Northview Apartment Real Estate Investment Trust, the median CEO pay is around CA$2.9m.
Northview Apartment Real Estate Investment Trust offered total compensation worth CA$1.7m to its CEO in the year to December 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.
Is Northview Apartment Real Estate Investment Trust Worth Keeping An Eye On?
Northview Apartment Real Estate Investment Trust's earnings per share have taken off like a rocket aimed right at the moon. Just as heartening; insiders both own and are buying more stock. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Northview Apartment Real Estate Investment Trust deserves timely attention. Now, you could try to make up your mind on Northview Apartment Real Estate Investment Trust 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 are plenty of other companies that have insiders buying up shares. So if you like the sound of Northview Apartment Real Estate Investment Trust, you'll probably love this free list of growing companies that insiders are buying.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
