Do NRW Holdings' (ASX:NWH) Earnings Warrant Your Attention?
In contrast to all that, many investors prefer to focus on companies like NRW Holdings (ASX:NWH), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.
How Quickly Is NRW Holdings Increasing Earnings Per Share?
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. It certainly is nice to see that NRW Holdings has managed to grow EPS by 17% per year over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. EBIT margins for NRW Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 14% to AU$3.1b. That's encouraging news for the company!
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
View our latest analysis for NRW 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 NRW Holdings.
Are NRW Holdings Insiders Aligned With All Shareholders?
Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
In the last twelve months NRW Holdings insiders spent AU$46k on stock; good news for shareholders. While this isn't much, we also note an absence of sales.
On top of the insider buying, it's good to see that NRW Holdings insiders have a valuable investment in the business. Given insiders own a significant chunk of shares, currently valued at AU$88m, they have plenty of motivation to push the business to succeed. This would indicate that the goals of shareholders and management are one and the same.
Does NRW Holdings Deserve A Spot On Your Watchlist?
If you believe that share price follows earnings per share you should definitely be delving further into NRW Holdings' strong EPS growth. Not only that, but we can see that insiders both own a lot of, and are buying more shares in the company. Astute investors will want to keep this stock on watch. It is worth noting though that we have found 1 warning sign for NRW Holdings that you need to take into consideration.
The good news is that NRW Holdings is not the only stock with insider buying. Here's a list of small cap, undervalued companies in AU with insider buying in the last three months!
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
How you can still make money from flipping property
In the Nineties and Noughties, a significant number of property investors — and ordinary owner-occupiers — were making large amounts of money from buying properties in need of refurbishment, doing them up quickly and selling them on at a profit, aka flipping. But, 20 years on, this practice is much less common. According to recent figures from Hamptons Research, in the first quarter of 2025, the proportion of homes bought and then re-sold within a year (ie flipped) fell to 2.3% across England and Wales, down from 3.6% in Q1 2024. This equated to 7,301 flipped homes in Q1 2025, 27% below the 10-year Q1 average. The average profit of these Q1 2025 flips was £22,000 and Hamptons found that while 80% of flipped homes were sold for a higher price in Q1 2025, only 66% made a profit. So, how can you still make money from flipping? We spoke to several experts to find out. Why has flipping property become less profitable? While there are several factors eating into flippers' profits, the main one is stamp duty. Not only have rates increased over the last 20 years, but property price inflation means that more properties are liable for this tax, while investors with multiple properties have to pay stamp duty at an additional rate. Read more: What are branded residences and who's buying them? 'Bigger stamp duty bills are wiping out a lot of profit from flipping. The 5% surcharge for investors, coupled with a reduction in the point at which buyers start paying stamp duty, means it's harder than ever to make the sums stack up,' says Aneisha Beveridge, head of research at Hamptons. The average stamp duty bill which was once around 10% of a flipper's gross profit, now swallows up around 30%. 'As recently as 20 years ago the highest rate of stamp duty was 2%. Now it is 12%, plus an extra 2% if you are an overseas buyer and an additional 3% if you own a property anywhere else in the world. So, you could be paying as much as 15% of the value in tax,' flags Marc Schneiderman, director, Arlington Residential. Renovating a property has also become more expensive, meaning investors need to pay out increasing amounts initially. 'Renovation costs have also risen, while inflation in both labour and materials, along with new compliance requirements such as energy efficiency standards, has increased upfront investment and overall project risk,' says Caroline Marshall-Roberts, CEO and founder of BuyAssociation. Read more: The pros and cons of buying property off-plan Sarah Walker, owner of Walker Hall Estate Agent, gives the example of a kitchen refurb. 'A kitchen that might have been £8,000 just a few years ago can easily come in at £15,000 or more once you factor in appliances, fitting and VAT.' What's more, the reduction of the capital gains allowance and stricter rules on what can be claimed on this make tax-efficient renovations difficult. 'Combine this with uncertain market timing and tighter lending conditions, and today's property investors looking to flip properties are dealing with thinner margins and greater exposure to downturns,' adds Marshall-Roberts. Which areas of the UK are still profitable when it comes to flipping? There are still areas of the country where you can flip and make a profit. According to Hamptons Research, the North East is the only region where flipping has become more common over the last decade. This is predominantly due to the prevalence of homes costing less than £40,000, well below the stamp duty threshold of £125,000. 'We still see some success in parts of the North West, in particular in certain areas of the Wirral, where property prices are lower and demand is steady,' says Liam Gretton, Bespoke Estate Agent. 'Buyers are also looking in areas with planned regeneration, where prices are starting to rise.' While there are general regional patterns of flip profitability, Walker believes it's more likely that a good hyper-local knowledge will help you find a suitable property. 'You need to understand which streets, which styles of homes, and which improvements genuinely add value in your patch. Forget national 'hotspots.' Success comes from knowing your area inside out and running the numbers with zero room for guesswork.' What types of houses are good for flipping? In terms of what makes a successful flip property, many of the age-old rules still hold true. 'Probate sales, long-held family homes or rentals that haven't been touched in decades are the sweet spot. Dated kitchens, pink bathrooms, swirly carpets, all perfect,' suggests Walker. Read more: What is pre-application planning and can you do it yourself? With the cost of renovations high, you're looking for properties that have good bones, are structurally sound and just need cosmetic modifications. With the age of first-time buyers increasing, larger, family homes are increasingly in demand and, therefore, have more flip potential. 'Investors looking to flip property should focus on three- or four-bedroom semi-detached houses. These homes tend to appeal to families and young professionals, increasing the likelihood of a quicker sale and a stronger return,' says Marshall-Roberts. 'Terraced houses and standard flats in residential blocks can also make good flip candidates.' In contrast, luxury homes with large stamp duty bills come with higher stakes attached. 'High-end homes or unusual properties are harder to flip quickly and carry more risk,' says Gretton. While flipping can be seen as a way of making a fast buck, Gretton flags that there are hidden benefits and that it has its place in the property market. 'It brings older or neglected homes back to life, creating more modern, liveable spaces that are ready for today's buyers or renters. It also helps maintain and support local property values especially in areas where tired housing stock might otherwise drag the market down.' Read more: How school fees can affect your mortgage borrowing The pros and cons of getting a mortgage into your 70s Pros and cons of lifetime ISAs
Yahoo
2 minutes ago
- Yahoo
Siemens reports Q3 results in line with forecasts
ZURICH (Reuters) -Siemens reported industrial profit in line with forecasts for its latest quarter on Thursday as the German engineering group navigated the fallout of rising global trade barriers. The maker of industrial software and trains reported industrial profit falling 7% to 2.82 billion euros ($3.29 billion) for the three months to the end of June, in line with analyst forecasts in a company-gathered consensus. Earnings were reduced by currency translation effects, particularly the fall of the dollar versus euro during the quarter, as well as restructuring costs as Siemens shed jobs at its flagship digital industry division. Revenue rose 3% to 19.38 billion euros, beating forecasts for 19.24 billion euros. "Our third-quarter performance demonstrates that Siemens is delivering robust results despite the volatile global market," said Chief Executive Roland Busch in a statement. ($1 = 0.8568 euros) Sign in to access your portfolio
Yahoo
2 minutes ago
- Yahoo
Deutsche Telekom meets Q2 profit expectations, lifts guidance
-Deutsche Telekom reported second quarter core profit in line with analyst expectations on Thursday, citing continued growth in both Germany and the U.S., and edged up its full-year profit guidance. The Germany-based telecoms giant reported second quarter adjusted earnings before interest, taxes and amortization after leases (EBITDA AL) of 11 billion euros ($13 billion), compared with the 10.95 billion euros expected by analysts in a company provided poll. "We are again seeing sustained strong growth on both sides of the Atlantic throughout the second quarter," Chief Executive Tim Hoettges said in a statement. The group slightly raised its core profit guidance for 2025, now expecting more than 45 billion euros, adjusted from around 45 billion euros expected before. It also adjusted its free cash flow AL expectations for 2025, now expecting over 20 billion euros from around 20 billion euros. The new guidance comes after its New York listed subsidiary T-Mobile US in July raised its annual forecast for postpaid net customer additions after adding more wireless subscribers than expected in the second quarter. ($1 = 0.8566 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
