Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. 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 are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

In contrast to all that, many investors prefer to focus on companies like B+S Banksysteme (ETR:DTD2), which has not only revenues, but also profits. While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

Check out our latest analysis for B+S Banksysteme

B+S Banksysteme's Improving Profits

Over the last three years, B+S Banksysteme 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. As a result, we'll zoom in on growth over the last year, instead. In impressive fashion, B+S Banksysteme's EPS grew from €0.071 to €0.20, over the previous 12 months. It's a rarity to see 180% year-on-year growth like that.

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. B+S Banksysteme shareholders can take confidence from the fact that EBIT margins are up from 2.1% to 14%, and revenue is growing. That's great to see, on both counts.

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

Since B+S Banksysteme is no giant, with a market capitalisation of €13m, you should definitely check its cash and debt before getting too excited about its prospects.

Are B+S Banksysteme 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 B+S Banksysteme insiders own a meaningful share of the business. In fact, they own 51% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. Of course, B+S Banksysteme is a very small company, with a market cap of only €13m. So this large proportion of shares owned by insiders only amounts to €6.8m. That might not be a huge sum but it should be enough to keep insiders motivated!