It is only natural that many investors, especially those new to the game, prefer to buy stocks in “sexy” stocks with a good history, even if those companies are losing money. But as Peter Lynch said on One Up On Wall Street, “Long shots almost never pay off.”

On the other hand, if you like companies that have sales and are even making profits, then you might be interested International money express (NASDAQ: IMXI). Even if stocks were fully valued today, most capitalists would recognize their gains as evidence of steady value creation. Loss-making companies always struggle against time to achieve financial sustainability, but time is often a friend of the profitable company, especially as it grows.

Check out our latest analysis for International Money Express

How fast is International Money Express earnings per share growing?

Over the past three years, International Money Express has increased earnings per share (EPS) like young bamboo after the rain. fast and from a low base. So I don’t think the percentage growth rate is particularly meaningful. Therefore, it makes sense to focus on newer growth rates instead. Like the last New Year’s Eve fireworks that sped up into the sky, International Money Express earnings per share shot from $ 0.52 to $ 0.89 last year. A 69% year-over-year growth is certainly a sight to behold.

Careful consideration of sales growth and earnings before interest and taxes (EBIT) can help provide an overview of the sustainability of recent earnings growth. The good news is that International Money Express is increasing sales and EBIT margins improved 3.6 percentage points to 2.1% last year. Checking these two boxes is a good sign of growth in my book.

You can take a look at the company’s sales and earnings growth trend in the graph below. For finer details click on the picture.

Profit and earnings history

The trick as an investor is to find companies that will perform well in the future, not just in the past. To that end, now and today, you can check out our visualization of consensus analysts forecast for future 100% free EPS from International Money Express.

The story goes on

Are International Money Express Insiders Targeted to All Shareholders?

I feel more secure owning stocks in a company when insiders also own stocks, which aligns our interests more closely. So it’s good to see that International Money Express insiders have invested a significant amount of capital in the stock. Given that insiders have a small fortune in stocks currently valued at $ 54 million, they are motivated enough to make the business a success. At 9.4% of the company, co-investing from insiders gives me confidence that management will make long-term, focused decisions.

It means a lot to see insiders invest in the business, but I wonder if the compensation policy is shareholder friendly. A brief analysis of the CEO’s compensation suggests that it is. I found that the median total compensation for CEOs at companies like International Money Express with market caps between $ 200 million and $ 800 million is roughly $ 1.5 million.

International Money Express CEO received US $ 1.3 million in compensation for the year-end. That seems pretty reasonable, especially given the below median score for companies of similar size. While the size of the CEO’s compensation is not a big factor in my view of the company, a modest compensation is positive as it suggests that the board of directors is considering the interests of shareholders. It can also be a sign of a culture of integrity in a broader sense.

Does International Money Express deserve a place on your watchlist?

International Money Express earnings per share have risen like a rocket aimed straight at the moon. The cherry on top is that insiders own a bucketload of stocks and the CEO’s pay seems really reasonable. The sharp rise in earnings could indicate good business momentum. International Money Express certainly meets some of my criteria so I think it is probably worth further consideration. We should say we discovered 2 warning signs for International Money Express You should know this before investing here.

While International Money Express certainly looks good to me, I would like it more if insiders bought up stocks. If you want to see inside buying as well, then this is it free List of Growing Companies Buying Insiders Might Be Just What You Are Looking For.

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

This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.

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