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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in G. Willi-Food International (NASDAQ:WILC). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
View our latest analysis for G. Willi-Food International
How Fast Is G. Willi-Food International Growing Its Earnings Per Share?
In the last three years G. Willi-Food International's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. Thus, it makes sense to focus on more recent growth rates, instead. Over twelve months, G. Willi-Food International increased its EPS from ₪2.90 to ₪3.09. That amounts to a small improvement of 6.4%.
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. The good news is that G. Willi-Food International is growing revenues, and EBIT margins improved by 2.3 percentage points to 14%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
G. Willi-Food International isn't a huge company, given its market capitalization of US$271m. That makes it extra important to check on its balance sheet strength.
Are G. Willi-Food International 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. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
One shining light for G. Willi-Food International is the serious outlay one insider has made to buy shares, in the last year. In one fell swoop, Co-Chairman of the Board Zwi Williger, spent US$1.8m, at a price of US$11.85 per share. It doesn't get much better than that, in terms of large investments from insiders.