For starters, it might seem like a good idea (and an exciting prospect) to buy a company that tells investors a good story, even if it completely lacks a track record of revenue and earnings. And in their study titled Who falls prey to the wolf of Wall Street? » Leuz and. al. found that it is “fairly common” for investors to lose money by buying into “pump and dump” schemes.

So if you’re like me, you might be more interested in profitable and growing companies, like IMINT Image Intelligence AB (ed.) (NGM:IMINT). Now, I’m not saying the stock is necessarily undervalued today; but I can’t help but appreciate the profitability of the business itself. While a well-funded business may suffer losses for years, unless its owners have an endless appetite to subsidize the customer, it will eventually have to turn a profit, or else breathe its last breath.

Discover our latest analysis for IMINT Image Intelligence AB (publ.)

How fast does IMINT Image Intelligence AB (publ.) grow earnings per share?

In business, but not in life, profits are a key measure of success; and stock prices tend to reflect earnings per share (EPS). So, like a ray of sunshine through a hole in the clouds, improved EPS is considered a good sign. It is therefore impressive that the EPS of IMINT Image Intelligence AB (publ.) has increased from 0.19 kr to 2.20 kr in just one year. When you see profits growing this quickly, it often means good things for the business. Could this be a sign that the company has reached an inflection point?

One way to check a company’s growth is to look at the evolution of its revenues and its earnings before interest and taxes (EBIT) margins. The good news is that IMINT Image Intelligence AB (publ.) is increasing its revenues and EBIT margins have improved by 16.5 percentage points to 21% compared to last year. It’s great to see, on both counts.

You can check the company’s revenue and profit growth trend in the table below. To see the actual numbers, click on the chart.

IMINT Image Intelligence AB (publ.) is not a big company, considering its market capitalization of 302 million kr. It is therefore very important to check the strength of its balance sheet.

Are IMINT Image Intelligence AB (publ.) insiders aligned with all shareholders?

Generally, I think it’s worth considering how much the CEO gets paid, because unreasonably high rates could be considered against the interests of shareholders. I found out that the median total compensation of CEOs of companies like IMINT Image Intelligence AB (publ.) with market caps below 2.0 billion kr is around 2.3 million kr.

IMINT Image Intelligence AB (publ.) offered a total compensation worth 1.3 million kr to its CEO during the year at . This is below average for companies of a similar size and seems pretty reasonable to me. CEO pay levels aren’t the most important metric for investors, but when pay is modest, it promotes better alignment between the CEO and ordinary shareholders. It can also be a sign of good governance more generally.

IMINT Image Intelligence AB (publ.) Is it worth watching?

Earnings per share for IMINT Image Intelligence AB (publ.) took off like a rocket aimed straight at the moon. With profits soaring, it seems likely that the company has a bright future; and it may have reached an inflection point. In the meantime, the very reasonable remuneration of the CEO reassures me a little, since it denotes a debauchery of absences. Although I cannot be sure without a deeper dive, it seems that IMINT Image Intelligence AB (publ.) has the hallmarks of a quality company; and it would be worth watching. You should always take note of the risks, for example – IMINT Image Intelligence AB (publ.) a 3 warning signs we think you should know.

Of course, you can (sometimes) buy stocks that are not increased income and do not have insiders buying stocks. But as a growth investor, I always like to check out companies that To do have these characteristics. You can access a free list of them here.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.