Should You Be Adding Atlantic Navigation Holdings (Singapore) (Catalist:5UL) To Your Watchlist Today?

In This Article:

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

In contrast to all that, many investors prefer to focus on companies like Atlantic Navigation Holdings (Singapore) (Catalist:5UL), 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.

View our latest analysis for Atlantic Navigation Holdings (Singapore)

How Fast Is Atlantic Navigation Holdings (Singapore) Growing Its Earnings Per Share?

Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. So for many budding investors, improving EPS is considered a good sign. It is awe-striking that Atlantic Navigation Holdings (Singapore)'s EPS went from US$0.0074 to US$0.033 in just one year. Even though that growth rate may not be repeated, that looks like a breakout improvement. This could point to the business hitting a point of inflection.

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. The music to the ears of Atlantic Navigation Holdings (Singapore) shareholders is that EBIT margins have grown from 16% to 27% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts.

The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.

earnings-and-revenue-history
earnings-and-revenue-history

Atlantic Navigation Holdings (Singapore) isn't a huge company, given its market capitalisation of S$131m. That makes it extra important to check on its balance sheet strength.

Are Atlantic Navigation Holdings (Singapore) 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 as you can imagine, the fact that Atlantic Navigation Holdings (Singapore) insiders own a significant number of shares certainly is appealing. Actually, with 43% of the company to their names, insiders are profoundly invested in the business. This should be a welcoming sign for investors because it suggests that the people making the decisions are also impacted by their choices. With that sort of holding, insiders have about US$56m riding on the stock, at current prices. So there's plenty there to keep them focused!