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. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

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 Taka Jewellery Holdings (Catalist:42L). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

See our latest analysis for Taka Jewellery Holdings

How Fast Is Taka Jewellery Holdings Growing Its Earnings Per Share?

Over the last three years, Taka Jewellery Holdings has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. Taka Jewellery Holdings' EPS skyrocketed from S$0.011 to S$0.016, in just one year; a result that's bound to bring a smile to shareholders. That's a fantastic gain of 53%.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Taka Jewellery Holdings achieved similar EBIT margins to last year, revenue grew by a solid 40% to S$146m. That's progress.

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.

Since Taka Jewellery Holdings is no giant, with a market capitalisation of S$39m, you should definitely check its cash and debt before getting too excited about its prospects.

Are Taka Jewellery Holdings Insiders Aligned With All Shareholders?

Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So those who are interested in Taka Jewellery Holdings will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. To be exact, company insiders hold 89% of the company, so their decisions have a significant impact on their investments. This should be seen as a good thing, as it means insiders have a personal interest in delivering the best outcomes for shareholders. To give you an idea, the value of insiders' holdings in the business are valued at S$35m at the current share price. So there's plenty there to keep them focused!