Sharetronic Data Technology (SZSE:300857) makes for an interesting case, due to EPS growth, etc.

For the uninitiated, it may seem like a good idea (and an attractive prospect) to buy companies that tell investors a good story, even if they don't currently have a track record of revenue or profits. But as Peter Lynch said, One Up on Wall Street, “Long shots rarely pay off.” Because loss-making companies are always in a race against time to achieve financial sustainability, investors in these companies may be taking on more risk than necessary.

If this kind of company isn't your style, but you like companies that generate revenue and even profits, you might be interested in companies like: Sharetronic Data Technology (SZSE:300857). Profit is not the only metric to consider when investing, but it is worth evaluating companies that can consistently generate profits.

Check out our latest analysis for Sharetronic Data Technology.

How fast is Sharetronic Data Technology increasing its earnings per share?

If you believe that markets are even vaguely efficient, you would expect a company's stock price to follow its earnings per share (EPS) results in the long run. That makes his EPS growth an attractive quality for any company. Shareholders will be pleased to know that Sharetronic Data Technology's EPS grew by 27% compounded each year over his three years. If the company can maintain that kind of growth, we would expect shareholders to go home satisfied.

One way to double-check a company's growth is to look at how its revenue and earnings before interest, tax, and tax (EBIT) margins are changing. Sharetronic Data Technology shareholders can take comfort from the fact that its EBIT margin has risen from his 4.2% to 7.0% and its revenue is growing. On both counts, it's great to see.

In the graph below, you can see how the company has grown its revenue and revenue over time. Click on the graph to see the actual numbers.

While profitability is an upside factor, smart investors also keep an eye on the balance sheet.

Are Sharetronic Data Technology insiders aligned with all shareholders?

Investors can feel secure in owning shares in a company when insiders also own shares, and their interests are closely aligned. So it's good to see that Sharetronic Data Technology insiders have invested significant capital in the stock. Notably, they own an enviable stake in the company worth CA$3.2 billion. This equates to 24% of the company, meaning insiders are powerful and aligned with other shareholders. It's very encouraging.

It's great to see insiders invested in the business, but shareholders may wonder whether the remuneration policy is in their best interest. Based on CEO compensation, they would certainly argue that it is. For companies like Sharetronic Data Technology with market capitalizations between CA$7.2 billion and CA$23 billion, the median CEO compensation is approximately CA$13 billion.

Sharetronic Data Technology has offered its CEO total compensation worth CA$728,000 for the year ending December 2022. This is actually below the median for his CEOs at similarly sized companies. CEO compensation may not be the most important aspect for a company to consider, but if it's reasonable, it gives us a little bit more confidence that management is looking out for shareholder interests. It is also a sign of a culture of integrity in a broader sense.

Is Sharetronic data technology worth paying attention to?

There's no denying that Sharetronic Data Technology is growing its earnings per share at a very impressive rate. That's fascinating. If you're still in doubt, keep in mind that company insiders have invested heavily, along with shareholders, and that CEO pay is quite modest compared to companies of similar size. Everyone has their own preferences when it comes to investing, but there's no doubt that Sharetronic Data Technology is pretty interesting. For example, Sharetronic Data Technology requires you to be aware of risks. two warning signs (and one you shouldn't ignore) that I think you should know about.

Sharetronic Data Technology certainly looks good, but if insiders had been buying up shares, it might become more attractive to more investors. If you want to know which companies have insider buying, then check out this selected selection of Chinese companies that not only boast strong growth, but also have recent insider buying.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.