Here's Why We Think YTL Power International Berhad (KLSE:YTLPOWR) Might Deserve Your Attention Today

Simply Wall St · 10/16 22:16

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. 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 can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

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

Check out our latest analysis for YTL Power International Berhad

How Fast Is YTL Power International Berhad Growing Its Earnings Per Share?

YTL Power International Berhad has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. So it would be better to isolate the growth rate over the last year for our analysis. Impressively, YTL Power International Berhad's EPS catapulted from RM0.25 to RM0.42, over the last year. It's not often a company can achieve year-on-year growth of 69%.

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. Despite the relatively flat revenue figures, shareholders will be pleased to see EBIT margins have grown from 17% to 25% in the last 12 months. That's a real positive.

In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.

earnings-and-revenue-history
KLSE:YTLPOWR Earnings and Revenue History October 16th 2024

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of YTL Power International Berhad's forecast profits?

Are YTL Power International Berhad Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a RM29b company like YTL Power International Berhad. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at RM1.2b. This suggests that leadership will be very mindful of shareholders' interests when making decisions!

Does YTL Power International Berhad Deserve A Spot On Your Watchlist?

YTL Power International Berhad's earnings per share have been soaring, with growth rates sky high. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. Based on the sum of its parts, we definitely think its worth watching YTL Power International Berhad very closely. Before you take the next step you should know about the 3 warning signs for YTL Power International Berhad (1 is concerning!) that we have uncovered.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in MY with promising growth potential and insider confidence.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.