It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'

In contrast to all that, I prefer to spend time on companies like Brewin Dolphin Holdings (LON:BRW), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.

See our latest analysis for Brewin Dolphin Holdings

Brewin Dolphin Holdings's Improving Profits

Even modest earnings per share growth (EPS) can create meaningful value, when it is sustained reliably from year to year. So EPS growth can certainly encourage an investor to take note of a stock. Like a falcon taking flight, Brewin Dolphin Holdings's EPS soared from UK£0.16 to UK£0.20, over the last year. That's a impressive gain of 26%.

I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Brewin Dolphin Holdings maintained stable EBIT margins over the last year, all while growing revenue 9.4% to UK£386m. That's a real positive.

In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.

While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not check this interactive chart depicting future EPS estimates, for Brewin Dolphin Holdings?

Are Brewin Dolphin Holdings Insiders Aligned With All Shareholders?

Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

Not only did Brewin Dolphin Holdings insiders refrain from selling stock during the year, but they also spent UK£124k buying it. That's nice to see, because it suggests insiders are optimistic. We also note that it was the CEO & Director, Robin Beer, who made the biggest single acquisition, paying UK£101k for shares at about UK£2.66 each.