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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Deutsche Industrie REIT-AG (ETR:JB7). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
See our latest analysis for Deutsche Industrie REIT-AG
How Fast Is Deutsche Industrie REIT-AG Growing Its Earnings Per Share?
Over the last three years, Deutsche Industrie REIT-AG has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like a falcon taking flight, Deutsche Industrie REIT-AG's EPS soared from €0.51 to €0.75, over the last year. That's a impressive gain of 47%.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Not all of Deutsche Industrie REIT-AG's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. Deutsche Industrie REIT-AG shareholders can take confidence from the fact that EBIT margins are up from 56% to 63%, and revenue is growing. Ticking those two boxes is a good sign of growth, in my book.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Deutsche Industrie REIT-AG.
Are Deutsche Industrie REIT-AG Insiders Aligned With All Shareholders?
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own Deutsche Industrie REIT-AG shares worth a considerable sum. With a whopping €63m worth of shares as a group, insiders have plenty riding on the company's success. At 17% of the company, the co-investment by insiders gives me confidence that management will make long-term focussed decisions.