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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. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
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 Fuller Smith & Turner (LON:FSTA). 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.
Our free stock report includes 3 warning signs investors should be aware of before investing in Fuller Smith & Turner. Read for free now.
Fuller Smith & Turner's Improving Profits
Over the last three years, Fuller Smith & Turner 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. Thus, it makes sense to focus on more recent growth rates, instead. In impressive fashion, Fuller Smith & Turner's EPS grew from UK£0.17 to UK£0.37, over the previous 12 months. It's a rarity to see 111% year-on-year growth like that.
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. EBIT margins for Fuller Smith & Turner remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 2.3% to UK£364m. That's progress.
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.
View our latest analysis for Fuller Smith & Turner
In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Fuller Smith & Turner's forecast profits?
Are Fuller Smith & Turner 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. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions.