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Here's Why We Think Gattaca (LON:GATC) Might Deserve Your Attention Today

Simply Wall St · 01/03 08:47

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

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Gattaca (LON:GATC). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Gattaca with the means to add long-term value to shareholders.

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How Fast Is Gattaca Growing Its Earnings Per Share?

In the last three years Gattaca's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. Thus, it makes sense to focus on more recent growth rates, instead. Impressively, Gattaca's EPS catapulted from UK£0.024 to UK£0.06, over the last year. Year on year growth of 148% is certainly a sight to behold.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Gattaca maintained stable EBIT margins over the last year, all while growing revenue 2.4% to UK£399m. That's encouraging news for the company!

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
AIM:GATC Earnings and Revenue History January 3rd 2026

Check out our latest analysis for Gattaca

Since Gattaca is no giant, with a market capitalisation of UK£33m, you should definitely check its cash and debt before getting too excited about its prospects.

Are Gattaca Insiders Aligned With All Shareholders?

It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Gattaca shares worth a considerable sum. Indeed, they hold UK£11m worth of its stock. This considerable investment should help drive long-term value in the business. Those holdings account for over 34% of the company; visible skin in the game.

Should You Add Gattaca To Your Watchlist?

Gattaca's earnings per share growth have been climbing higher at an appreciable rate. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. 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. So at the surface level, Gattaca is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Gattaca (1 shouldn't be ignored) you should be aware of.

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 GB with promising growth potential and insider confidence.

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