Here's Why We Think Mah Sing Group Berhad (KLSE:MAHSING) Is Well Worth Watching

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 the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. 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.

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

View our latest analysis for Mah Sing Group Berhad

How Quickly Is Mah Sing Group Berhad Increasing Earnings Per Share?

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. Shareholders will be happy to know that Mah Sing Group Berhad's EPS has grown 26% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. It's also worth noting that the EPS growth has been assisted by share buybacks, indicating the company is in a position to return capital to shareholders.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for Mah Sing Group Berhad remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 42% to RM2.5b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

earnings-and-revenue-history
KLSE:MAHSING Earnings and Revenue History August 28th 2023

The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Mah Sing Group Berhad's future EPS 100% free.

Are Mah Sing Group Berhad Insiders Aligned With All Shareholders?

Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So those who are interested in Mah Sing Group Berhad will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. Actually, with 37% of the company to their names, insiders are profoundly invested in the business. Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. In terms of absolute value, insiders have RM658m invested in the business, at the current share price. That's nothing to sneeze at!