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The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
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 MARA Holdings (NASDAQ:MARA). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
Our free stock report includes 5 warning signs investors should be aware of before investing in MARA Holdings. Read for free now.
How Fast Is MARA Holdings Growing Its Earnings Per Share?
Over the last three years, MARA Holdings has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. MARA Holdings boosted its trailing twelve month EPS from US$1.41 to US$1.57, in the last year. This amounts to a 11% gain; a figure that shareholders will be pleased to see.
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, MARA Holdings has done well over the past year, growing revenue by 69% to US$656m but EBIT margin figures were less stellar, seeing a decline over the last 12 months. If EBIT margins are able to stay balanced and this revenue growth continues, then we should see brighter days ahead.
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.
Check out our latest analysis for MARA Holdings
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 MARA Holdings.
Are MARA Holdings Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a US$5.0b company like MARA Holdings. But we do take comfort from the fact that they are investors in the company. With a whopping US$87m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to let shareholders know that management will be very focussed on long term growth.