U.S. markets closed
  • S&P 500

    4,122.47
    -17.59 (-0.42%)
     
  • Dow 30

    32,774.41
    -58.13 (-0.18%)
     
  • Nasdaq

    12,493.93
    -150.53 (-1.19%)
     
  • Russell 2000

    1,912.89
    -28.31 (-1.46%)
     
  • Crude Oil

    90.54
    -0.22 (-0.24%)
     
  • Gold

    1,810.50
    +5.30 (+0.29%)
     
  • Silver

    20.50
    -0.12 (-0.58%)
     
  • EUR/USD

    1.0217
    +0.0022 (+0.21%)
     
  • 10-Yr Bond

    2.7970
    +0.0320 (+1.16%)
     
  • GBP/USD

    1.2076
    -0.0005 (-0.04%)
     
  • USD/JPY

    135.0870
    +0.1140 (+0.08%)
     
  • BTC-USD

    23,211.50
    -612.03 (-2.57%)
     
  • CMC Crypto 200

    537.23
    -20.12 (-3.61%)
     
  • FTSE 100

    7,488.15
    +5.78 (+0.08%)
     
  • Nikkei 225

    27,999.96
    -249.28 (-0.88%)
     

I Ran A Stock Scan For Earnings Growth And JELD-WEN Holding (NYSE:JELD) Passed With Ease

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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.

In contrast to all that, I prefer to spend time on companies like JELD-WEN Holding (NYSE:JELD), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.

Check out our latest analysis for JELD-WEN Holding

JELD-WEN Holding's Improving Profits

In business, though not in life, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS). So like the hint of a smile on a face that I love, growing EPS generally makes me look twice. It is therefore awe-striking that JELD-WEN Holding's EPS went from US$0.47 to US$1.54 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company.

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. JELD-WEN Holding maintained stable EBIT margins over the last year, all while growing revenue 11% to US$4.6b. That's progress.

In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers.

earnings-and-revenue-history
earnings-and-revenue-history

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 JELD-WEN Holding's future profits.

Are JELD-WEN Holding Insiders Aligned With All Shareholders?

I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own JELD-WEN Holding shares worth a considerable sum. Indeed, they hold US$20m worth of its stock. That's a lot of money, and no small incentive to work hard. Despite being just 0.7% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.

Is JELD-WEN Holding Worth Keeping An Eye On?

JELD-WEN Holding's earnings per share growth have been levitating higher, like a mountain goat scaling the Alps. That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So to my mind JELD-WEN Holding is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. You still need to take note of risks, for example - JELD-WEN Holding has 2 warning signs we think you should be aware of.

Although JELD-WEN Holding certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.