Investors are often drawn to companies with a good story, even if they are loss-making, but the risks associated with these investments can be high. One company that is bucking this trend is XRF Scientific (ASX:XRF), a profitable company that is attracting investors with its strong financial performance.
XRF Scientific has been experiencing impressive growth in earnings per share (EPS), with a 28% increase per year over the past three years. This growth is a positive sign for long-term investors, as it indicates the company’s potential for success in the market.
In addition to its EPS growth, XRF Scientific has also seen a 17% increase in revenue, maintaining a competitive advantage in the market. With a market capitalization of AU$189m, investors are advised to closely monitor the company’s cash and debt levels before making any investment decisions.
Insider buying is often seen as a positive sign for investors, and in the case of XRF Scientific, insiders have collectively invested AU$43m in the company. This significant buy-in demonstrates their confidence in the business strategy and accounts for over 23% of the company’s ownership.
Overall, XRF Scientific’s strong EPS growth, coupled with insider buying, makes it a stock worth watching for investors. Those interested in the company should conduct further research, including reviewing its annual report and discounted cash flow valuation, to determine if it aligns with their investment strategy.