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. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

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

See our latest analysis for IMI

How Quickly Is IMI Increasing Earnings Per Share?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years IMI grew its EPS by 13% per year. That's a pretty good rate, if the company can sustain it.

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. While we note IMI achieved similar EBIT margins to last year, revenue grew by a solid 7.2% to UK￡2.2b. That's progress.

In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.

While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for IMI?

Are IMI Insiders Aligned With All Shareholders?

Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

The good news for IMI shareholders is that no insiders reported selling shares in the last year. With that in mind, it's heartening that Thomas Andersen, the Senior Independent Non-Executive Director of the company, paid UK￡6.4k for shares at around UK￡16.00 each. Purchases like this can help the investors understand the views of the management team; in which case they see some potential in IMI.