Should You Be Adding Bravura Solutions (ASX:BVS) To Your Watchlist Today?

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Explore Bravura Solutions's Fair Values from the Community and select yours
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. 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 Bravura Solutions (ASX:BVS). 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.
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How Fast Is Bravura Solutions Growing?
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. We can see that in the last three years Bravura Solutions grew its EPS by 11% per year. That growth rate is fairly good, assuming the company can keep it up.
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. The good news is that Bravura Solutions is growing revenues, and EBIT margins improved by 25.1 percentage points to 31%, over the last year. Ticking those two boxes is a good sign of growth, in our book.
In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.
View our latest analysis for Bravura Solutions
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 Bravura Solutions' future profits.
Are Bravura Solutions Insiders Aligned With All Shareholders?
It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. So it is good to see that Bravura Solutions insiders have a significant amount of capital invested in the stock. To be specific, they have AU$41m worth of shares. This considerable investment should help drive long-term value in the business. While their ownership only accounts for 4.7%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.
It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. A brief analysis of the CEO compensation suggests they are. For companies with market capitalisations between AU$307m and AU$1.2b, like Bravura Solutions, the median CEO pay is around AU$1.2m.
The Bravura Solutions CEO received total compensation of just AU$115k in the year to June 2025. That looks like a modest pay packet, and may hint at a certain respect for the interests of shareholders. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.
Does Bravura Solutions Deserve A Spot On Your Watchlist?
As previously touched on, Bravura Solutions is a growing business, which is encouraging. Earnings growth might be the main attraction for Bravura Solutions, but the fun does not stop there. With company insiders aligning themselves considerably with the company's success and modest CEO compensation, there's no arguments that this is a stock worth looking into. You should always think about risks though. Case in point, we've spotted 3 warning signs for Bravura Solutions you should be aware of, and 1 of them is significant.
While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in AU with promising growth potential and insider confidence.
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.