The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

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 SHL Consolidated Bhd (KLSE:SHL). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide SHL Consolidated Bhd with the means to add long-term value to shareholders.

View our latest analysis for SHL Consolidated Bhd

SHL Consolidated Bhd's Earnings Per Share Are Growing

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Recognition must be given to the that SHL Consolidated Bhd has grown EPS by 47% per year, over the last three years. Growth that fast may well be fleeting, but it should be more than enough to pique the interest of the wary stock pickers.

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. The good news is that SHL Consolidated Bhd is growing revenues, and EBIT margins improved by 5.4 percentage points to 39%, over the last year. Ticking those two boxes is a good sign of growth, in our 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.

Since SHL Consolidated Bhd is no giant, with a market capitalisation of RM654m, you should definitely check its cash and debt before getting too excited about its prospects.

Are SHL Consolidated Bhd 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 we're pleased to report that SHL Consolidated Bhd insiders own a meaningful share of the business. Indeed, with a collective holding of 70%, company insiders are in control and have plenty of capital behind the venture. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. In terms of absolute value, insiders have RM461m invested in the business, at the current share price. That should be more than enough to keep them focussed on creating shareholder value!