Here's Why We Think thyssenkrupp nucera KGaA (ETR:NCH2) Might Deserve Your Attention Today
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. 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. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like thyssenkrupp nucera KGaA (ETR:NCH2). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide thyssenkrupp nucera KGaA with the means to add long-term value to shareholders.
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How Quickly Is thyssenkrupp nucera KGaA Increasing Earnings Per Share?
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Over the last three years, thyssenkrupp nucera KGaA has grown EPS by 12% per year. That's a good rate of growth, if it can be sustained.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for thyssenkrupp nucera KGaA remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 33% to €969m. That's encouraging news for the company!
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
See our latest analysis for thyssenkrupp nucera KGaA
You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for thyssenkrupp nucera KGaA's future profits.
Are thyssenkrupp nucera KGaA Insiders Aligned With All Shareholders?
As a general rule, it's worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. For companies with market capitalisations between €862m and €2.8b, like thyssenkrupp nucera KGaA, the median CEO pay is around €1.5m.
thyssenkrupp nucera KGaA offered total compensation worth €775k to its CEO in the year to September 2024. That is actually below the median for CEO's of similarly sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.
Does thyssenkrupp nucera KGaA Deserve A Spot On Your Watchlist?
One positive for thyssenkrupp nucera KGaA is that it is growing EPS. That's nice to see. To add to this, the modest CEO compensation should tell investors that the directors have an active interest in delivering the best for shareholders. So based on its merits, the stock deserves further research, if not an addition to your watchlist. Another important measure of business quality not discussed here, is return on equity (ROE). Click on this link to see how thyssenkrupp nucera KGaA shapes up to industry peers, when it comes to ROE.
Although thyssenkrupp nucera KGaA certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of German companies that not only boast of strong growth but have strong insider backing.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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