Is Now The Time To Put BBR Holdings (S) (SGX:KJ5) On Your Watchlist?
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 BBR Holdings (S) (SGX:KJ5). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide BBR Holdings (S) with the means to add long-term value to shareholders.
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Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. Which is why EPS growth is looked upon so favourably. Commendations have to be given in seeing that BBR Holdings (S) grew its EPS from S$0.02 to S$0.066, in one short year. Even though that growth rate may not be repeated, that looks like a breakout improvement. This could point to the business hitting a point of inflection.
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. On the revenue front, BBR Holdings (S) has done well over the past year, growing revenue by 22% to S$290m but EBIT margin figures were less stellar, seeing a decline over the last 12 months. So if EBIT margins can stabilize, this top-line growth should pay off for shareholders.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
View our latest analysis for BBR Holdings (S)
BBR Holdings (S) isn't a huge company, given its market capitalisation of S$64m. That makes it extra important to check on its balance sheet strength.
It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own BBR Holdings (S) shares worth a considerable sum. As a matter of fact, their holding is valued at S$18m. That shows significant buy-in, and may indicate conviction in the business strategy. As a percentage, this totals to 28% of the shares on issue for the business, an appreciable amount considering the market cap.
BBR Holdings (S)'s 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 serves to further stoke our interest. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. Based on the sum of its parts, we definitely think its worth watching BBR Holdings (S) very closely. We should say that we've discovered 2 warning signs for BBR Holdings (S) that you should be aware of before investing here.
There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Singaporean companies which have demonstrated growth backed by significant insider holdings.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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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.
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