Yahoo Finance Do APN Convenience Retail REIT's (ASX:AQR) Earnings Warrant Your Attention?
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 completely 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.'
So if you're like me, you might be more interested in profitable, growing companies, like APN Convenience Retail REIT (ASX:AQR). While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for APN Convenience Retail REIT
How Fast Is APN Convenience Retail REIT Growing Its Earnings Per Share?
Even with very modest growth rates, a company will usually do well if it improves earnings per share (EPS) year after year. So EPS growth can certainly encourage an investor to take note of a stock. Like a falcon taking flight, APN Convenience Retail REIT's EPS soared from AU$0.16 to AU$0.20, over the last year. That's a impressive gain of 25%.
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. APN Convenience Retail REIT shareholders can take confidence from the fact that EBIT margins are up from 81% to 83%, and revenue is growing. That's great to see, on both counts.
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.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not check this interactive chart depicting future EPS estimates, for APN Convenience Retail REIT?
Are APN Convenience Retail REIT Insiders Aligned With All Shareholders?
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right.
One positive for APN Convenience Retail REIT, is that company insiders paid AU$32k for shares in the last year. While this isn't much, we also note an absence of sales. We also note that it was the Independent Director APN Funds Management Limited, Howard Brenchley, who made the biggest single acquisition, paying AU$30k for shares at about AU$2.63 each.
Does APN Convenience Retail REIT Deserve A Spot On Your Watchlist?
Given my belief that share price follows earnings per share you can easily imagine how I feel about APN Convenience Retail REIT's strong EPS growth. The growth rate whets my appetite for research, and the insider buying only increases my interest in the stock. So on this analysis I believe APN Convenience Retail REIT is probably worth spending some time on. We don't want to rain on the parade too much, but we did also find 4 warning signs for APN Convenience Retail REIT that you need to be mindful of.
As a growth investor I do like to see insider buying. But APN Convenience Retail REIT isn't the only one. You can see a a free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
