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Yahoo
15 hours ago
- Business
- Yahoo
With EPS Growth And More, SRG Global (ASX:SRG) Makes An Interesting Case
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. 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 SRG Global (ASX:SRG). 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. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. How Fast Is SRG Global Growing? If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, SRG Global has grown EPS by 18% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. SRG Global maintained stable EBIT margins over the last year, all while growing revenue 25% to AU$1.2b. That's encouraging news for the company! The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Check out our latest analysis for SRG Global 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 SRG Global's future profits. Are SRG Global Insiders Aligned With All Shareholders? It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. SRG Global followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at AU$41m. That's a lot of money, and no small incentive to work hard. Despite being just 4.1% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. Does SRG Global Deserve A Spot On Your Watchlist? You can't deny that SRG Global has grown its earnings per share at a very impressive rate. That's attractive. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in SRG Global's continuing strength. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it's a good stock to follow. You still need to take note of risks, for example - SRG Global has 2 warning signs we think you should be aware of. Although SRG Global certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Australian companies that not only boast of strong growth but have strong insider backing. 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) 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
With EPS Growth And More, GQG Partners (ASX:GQG) Makes An Interesting Case
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like GQG Partners (ASX:GQG). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Fast Is GQG Partners Growing Its Earnings Per Share? In the last three years GQG Partners' earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. To the delight of shareholders, GQG Partners' EPS soared from US$0.095 to US$0.14, over the last year. That's a commendable gain of 51%. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. While we note GQG Partners achieved similar EBIT margins to last year, revenue grew by a solid 47% to US$760m. That's progress. 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. Check out our latest analysis for GQG Partners In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of GQG Partners' forecast profits? Are GQG Partners Insiders Aligned With All Shareholders? It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right. It's pleasing to note that insiders spent US$8.5m buying GQG Partners shares, over the last year, without reporting any share sales whatsoever. Knowing this, GQG Partners will have have all eyes on them in anticipation for the what could happen in the near future. We also note that it was the Founder, Rajiv Jain, who made the biggest single acquisition, paying AU$534k for shares at about AU$1.94 each. And the insider buying isn't the only sign of alignment between shareholders and the board, since GQG Partners insiders own more than a third of the company. Indeed, with a collective holding of 74%, company insiders are in control and have plenty of capital behind the venture. This should be seen as a good thing, as it means insiders have a personal interest in delivering the best outcomes for shareholders. at the current share price. This is an incredible endorsement from them. Is GQG Partners Worth Keeping An Eye On? You can't deny that GQG Partners has grown its earnings per share at a very impressive rate. That's attractive. Not only that, but we can see that insiders both own a lot of, and are buying more shares in the company. These things considered, this is one stock worth watching. We don't want to rain on the parade too much, but we did also find 1 warning sign for GQG Partners that you need to be mindful of. There are plenty of other companies that have insiders buying up shares. So if you like the sound of GQG Partners, you'll probably love this curated collection of companies in AU that have an attractive valuation alongside 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) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Here's Why We Think Auction Technology Group (LON:ATG) Might Deserve Your Attention Today
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. In contrast to all that, many investors prefer to focus on companies like Auction Technology Group (LON:ATG), which has not only revenues, but also profits. 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. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Auction Technology Group's Improving Profits In the last three years Auction Technology Group's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. As a result, we'll zoom in on growth over the last year, instead. Impressively, Auction Technology Group's EPS catapulted from US$0.11 to US$0.21, over the last year. It's a rarity to see 82% year-on-year growth like that. 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. Despite the relatively flat revenue figures, shareholders will be pleased to see EBIT margins have grown from 17% to 21% in the last 12 months. That's something to smile about. In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. Check out our latest analysis for Auction Technology Group Fortunately, we've got access to analyst forecasts of Auction Technology Group's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. Are Auction Technology Group Insiders Aligned With All Shareholders? It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Auction Technology Group followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at US$17m. That's a lot of money, and no small incentive to work hard. Despite being just 2.9% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. Should You Add Auction Technology Group To Your Watchlist? Auction Technology Group's earnings have taken off in quite an impressive fashion. 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. So at the surface level, Auction Technology Group is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Now, you could try to make up your mind on Auction Technology Group by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in GB with promising growth potential and insider confidence. 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) 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. Sign in to access your portfolio
Mint
18-07-2025
- Business
- Mint
Finology Research Desk never invests in these stocks? Here's why
Finology Research Desk has a clear view: Not every stock deserves a place in your portfolio. Plenty of them look great at first - rapid growth, big promises, glowing media coverage. But take a closer look, and warning signs start to show. These stocks can quietly hurt your returns over the long run. That's why picking the right stocks isn't just about spotting winners. It's also about knowing what to avoid, and why. So we've built our rulebook: a clear, no-compromise principle of what not to own. Here's what we deliberately avoid and why: We stay away from companies that try to lead in every sector. When promoters believe they can do everything, they usually end up losing focus. Legendary investor Peter Lynch warned against this kind of over-diversification; he called it 'diworsification.' It's the opposite of smart diversification. Instead of reducing risk, it adds complexity, misallocates capital, and weakens the core business. Such companies are hard to analyse, and even harder to predict. As investors, we prefer clarity and focus. So if a business keeps changing strategies, jumping into unrelated sectors, or shifting direction too often, it signals a lack of clarity. In Finology 30, we pick focused businesses that lead in their sector. The result is clear: true portfolio-level diversification, built by choosing one strong, sector-leading company at a time. Amtek Group is a classic example. Once a strong auto parts player, it lost direction in 2014 by acquiring Barista Coffee for ₹ 100 crore through its subsidiary, a move that made no strategic sense. At that time, Amtek was already struggling with debt, which had climbed from ₹ 15,000 crore in FY13 to ₹ 17,600 crore in FY14. Instead of focusing on its core business, it poured money into a loss-making, unrelated venture. In 2015, the company defaulted on ₹ 800 crore worth of bonds and was forced to sell Barista and other assets to raise cash. By 2017, it went bankrupt, a direct result of rising debt and poor business focus. We prefer businesses with focused promoters who solve one problem well, without distractions. We avoid companies that aren't profitable. That doesn't mean every business must turn a profit from day one. Taking a few years is fine; there may be valid reasons, like heavy upfront investment or the need to reach scale in a low-margin industry. But lately, chasing growth without a clear path to profits has become the norm. We believe in doing business the Zerodha or Zoho way: build with your capital, borrow less, and grow through real profits. Sure, some businesses genuinely need heavy capital and have to raise funds; that's fair. But with over 5,000 listed companies to choose from for Finology 30, we don't compromise. We focus only on businesses that are profitable, use customer money to grow, and can stand on their own. That's how we find 30 companies worth owning with confidence. And even if a company is profitable, we avoid it if it can't fund its operations. United Phosphorus Limited (UPL) is a classic example. In FY24, its profit dropped 60%, ending the year with a loss of ₹ 1,878 crore. EBITDA margins fell from 19% to 10%, and cash flows dried up. By December 2024, it had to raise ₹ 3,378 crore through a rights issue to repay its debt, which stood at ₹ 23,939 crore in FY23. Despite years of reported profits, the business couldn't sustain itself. High debt and rising costs kept draining cash. That's exactly the kind of risk we stay away from. We strictly avoid public sector undertakings. While the government's role in sectors like healthcare, education, and law and order is critical, its involvement in running commercial enterprises such as airlines or a large number of banks may not always align with long-term economic efficiency. We believe that one or two public banks are enough to ensure system stability. But when there are over 12, banks like SBI and Bank of Baroda end up competing with each other, instead of making the system stronger. We stay away from companies that raise money every few months through FPOs, rights issues, or QIPs. Frequent fundraising is a red flag, as it usually means the company is short on cash or its core business isn't strong enough to fund growth on its own. And here's the bigger problem: every time they issue new shares, existing shareholders get diluted. Even if profits grow later, earnings per share stay low because those profits are spread across too many shares. We prefer businesses that fund growth through internal cash flows. In those cases, profits aren't just earned, they're reinvested into the business, keeping it self-reliant. Over time, consistent cash generation can even allow these companies to buy back shares, reducing the total share count. That means future profits are shared among fewer shareholders, which pushes up earnings per share and shows the company is focused on real value creation, not just growth for the sake of it. We avoid companies that depend heavily on government contracts, where most of their revenue comes from B2G. In sectors like railways and infrastructure, the government is the dominant buyer. Multiple companies bid aggressively for the same order, leaving all the pricing power with the government. On paper, these contracts may look lucrative. But the reality is different, margins are thin, payments are delayed for months, and a single policy change can throw everything off balance. And it's not just limited to government-facing businesses. The same problem shows up in any industry with too many sellers and too few buyers. In these situations, suppliers are stuck cutting costs, working with thin margins, and unable to raise prices. That's not the kind of company we want to invest in. We stay away from companies that chase growth at any cost. These are the ones that want to be everywhere: food delivery, quick commerce, AI, logistics, you name it. But when you ask about net profit, they brush it off, because they've never made any. Instead, they point to EBITDA or operating profit. These numbers look better because they leave out key expenses like interest, depreciation, and taxes. It gives a false impression that the company is profitable when, in reality, it's not. A few quarters later, when you ask again, they announce a new category where they plan to invest heavily for the next couple of years. And when questioned, they defend it by saying: 'If we weren't entering new segments, our older ones would have been profitable.' But those profits never show up. The reality is, no company can win in every segment. One wrong move can undo years of progress. We'd rather invest in companies that lead in one segment, stay focused, and expand with clarity. We avoid companies run by promoters with a political background. These businesses often grow quickly when their party is in power, thanks to easy contracts and fast-track approvals. But that growth usually comes at a cost: under-the-table deals, misused influence and unfair advantages. And once the ruling party changes, the support vanishes, projects get delayed, and investigations often begin into how those contracts were awarded. Political ties might fast-track growth for a while, but it's usually short-lived and often built on corruption. And that's the real concern. That's not a risk we're willing to take. Markets are full of noise, big promises, flashy numbers, and constant hype. Investing is an art, and while some of these companies might still deliver returns, we are not willing to put your money at unnecessary risk. That's why we built Finology 30, a basket of 30 stocks built for investors who believe in long-term wealth creation and value a focused approach. These stocks are selected through rigorous filters that prioritise business quality, management integrity, and valuation discipline to appreciate and protect your capital. Finology is a SEBI-registered investment advisor firm with registration number: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Yahoo
15-07-2025
- Business
- Yahoo
Why You Should Be Investing in Coca-Cola, Home Depot and 6 More of Your Favorite Brands
It may not even occur to you as you go shopping, but many of the brands that you know and love are actually publicly traded companies. This means you can invest in their stocks on the open market and participate in their success. But does it make financial sense to invest in companies just because you use their products? Here are some of the reasons why you may want to consider investing in the stocks of your favorite brands. For You: Read Next: Famous investors from Peter Lynch to Warren Buffett have touted the idea for decades that you should invest in what you know. If you're an avid Costco shopper, for example, you likely know very well how the store operates, what products it offers and how its customer service and product quality match up to its competitors. If you can remove emotion from the equation and analyze these facts objectively, you could have a leg up when determining whether or not a company is a good investment. Discover Next: When you buy a company's stock, you become a part-owner. Granted, the percentage of the company you will own, even with a big purchase, is minuscule, but you still participate in the success of the stock the same as any institutional investor. When you spend money at your favorite store, you're directly contributing to your own success by generating sales. The same is true if you refer all your friends and they become customers also. Some companies reward their shareholders with various perks. Royal Caribbean, Carnival and Norwegian Cruise Line, for example, offer their shareholders onboard credit for owning at least 100 shares, according to Tiicker. Whirlpool offers shareholders a 30% discount with the purchase of just one share. And Berkshire Hathaway not only grants access to its annual shareholder meeting, which is a globally televised, two-day event that fills a sports arena, but it also gives 8% off a Geico insurance plan if you own a single share. Most well-known, established brands pay cash dividends to shareholders as a way of distributing their profits. If you're a fan of cash-back credit cards, buying stocks that pay a dividend should be right up your alley. The S&P 500 index, which consists of the 500 largest companies in America, currently pays a dividend yield of 1.25%, but some popular brands, like Pepsi, pay as much as 4.31%, according to Yahoo Finance. That's more than you could earn from most government bonds and high-yield savings accounts and it doesn't even factor in the capital appreciation potential of the stock. Here are some of the most well-known, beloved companies in America that you could consider investing in. As always, do your own homework and make sure that a company matches your investment objectives and risk tolerance before committing any money. Each stock's details were sourced from Yahoo Financial. Stock price as of July 9, 2025: $69.48 YTD performance: 13.22% 5-year performance: 84.14% Dividend yield: 2.88% One-year analyst price target: $77.83 Stock price as of July 9, 2025: $134.48 YTD performance: -9.80% 5-year performance: 17.62% Dividend yield: 4.31% One-year analyst price target: $149.15 Stock price as of July 9, 2025: $371.04 YTD performance: -3.41% 5-year performance: 68.78% Dividend yield: 2.51% One-year analyst price target: $418.64 Stock price as of July 9, 2025: $211.14 YTD performance: -15.48% 5-year performance: 126.84% Dividend yield: 0.51% One-year analyst price target: $228.60 Stock price as of July 9, 2025: $503.51 YTD performance: 19.92% 5-year performance: 145.21% Dividend yield: 0.67% One-year analyst price target: $522.26 Stock price as of July 9, 2025: $222.54 YTD performance: 1.44% 5-year performance: 39.85% Dividend yield: N/A One-year analyst price target: $241.82 Stock price as of July 9, 2025: $96.81 YTD performance: 7.70% 5-year performance: 144.15% Dividend yield: 0.96% One-year analyst price target: $108.95 Stock price as of July 9, 2025: $982.09 YTD performance: 7.44% 5-year performance: 227.61% Dividend yield: 0.53% One-year analyst price target: $1,056.36 No stock is going to perform better simply because you own its shares. But investing in companies that you like can still pay dividends, literally and figuratively. In addition to feeling like you're part of the company that you shop at, when you're interested in investing, you're more likely to stick with it. And the longer you remain invested in the stock market, the more likely you are to enjoy long-term success. Just remember that even the best company isn't immune to the business cycle and will have its inevitable ups and downs. This is why a balanced, diversified portfolio can be a great way to reduce your risk while still maintaining your long-term upside. More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on Why You Should Be Investing in Coca-Cola, Home Depot and 6 More of Your Favorite Brands Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
