Advertisement
U.S. markets close in 3 hours 36 minutes
  • S&P 500

    5,250.92
    +2.43 (+0.05%)
     
  • Dow 30

    39,779.79
    +19.71 (+0.05%)
     
  • Nasdaq

    16,380.00
    -19.52 (-0.12%)
     
  • Russell 2000

    2,133.38
    +19.03 (+0.90%)
     
  • Crude Oil

    82.63
    +1.28 (+1.57%)
     
  • Gold

    2,235.00
    +22.30 (+1.01%)
     
  • Silver

    24.86
    +0.11 (+0.44%)
     
  • EUR/USD

    1.0804
    -0.0026 (-0.24%)
     
  • 10-Yr Bond

    4.1930
    -0.0030 (-0.07%)
     
  • GBP/USD

    1.2639
    +0.0001 (+0.01%)
     
  • USD/JPY

    151.2600
    +0.0140 (+0.01%)
     
  • Bitcoin USD

    70,759.05
    +1,814.79 (+2.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,964.79
    +32.81 (+0.41%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

We Ran A Stock Scan For Earnings Growth And Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) Passed With Ease

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 as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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.

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 Press Metal Aluminium Holdings Berhad (KLSE:PMETAL). 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.

View our latest analysis for Press Metal Aluminium Holdings Berhad

How Quickly Is Press Metal Aluminium Holdings Berhad Increasing Earnings Per Share?

If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. To the delight of shareholders, Press Metal Aluminium Holdings Berhad has achieved impressive annual EPS growth of 41%, compound, over the last three years. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.

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. While we note Press Metal Aluminium Holdings Berhad achieved similar EBIT margins to last year, revenue grew by a solid 56% to RM15b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. 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 Press Metal Aluminium Holdings Berhad's future profits.

Are Press Metal Aluminium Holdings Berhad Insiders Aligned With All Shareholders?

Owing to the size of Press Metal Aluminium Holdings Berhad, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. We note that their impressive stake in the company is worth RM10b. Coming in at 25% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.

It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Our quick analysis into CEO remuneration would seem to indicate they are. For companies with market capitalisations between RM18b and RM53b, like Press Metal Aluminium Holdings Berhad, the median CEO pay is around RM5.7m.

The CEO of Press Metal Aluminium Holdings Berhad only received RM2.5m in total compensation for the year ending December 2021. That looks like a modest pay packet, and may hint at a certain respect for the interests of shareholders. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.

Does Press Metal Aluminium Holdings Berhad Deserve A Spot On Your Watchlist?

Press Metal Aluminium Holdings Berhad's earnings per share growth have been climbing higher at an appreciable rate. The sweetener is that insiders have a mountain of stock, and the CEO remuneration is quite reasonable. The sharp increase in earnings could signal good business momentum. Big growth can make big winners, so the writing on the wall tells us that Press Metal Aluminium Holdings Berhad is worth considering carefully. It is worth noting though that we have found 2 warning signs for Press Metal Aluminium Holdings Berhad that you need to take into consideration.

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.

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

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Advertisement