Highlights
- AMP shows impressive EPS growth
- Insider buying reflects confidence
- Steady revenue and margin growth
Investors often dream of discovering 'the next big thing', sometimes venturing into stocks with compelling stories but without revenue. However, the focus shifts substantially when looking at established companies like AMP Limited (ASX:AMP), which not only generates revenue but also shows a profit. Such companies attract attention due to their solid fundamentals and potential for growth.
Analyzing AMP's Earnings Growth
Over the past year, AMP Limited has significantly increased its earnings per share (EPS) from AU$0.044 to AU$0.071, marking a remarkable 63% growth. This leap undoubtedly adds a smile to shareholders' faces. Evaluating the company's earnings before interest and tax (EBIT) margins alongside revenue growth suggests strong signs of growth. In the last year, AMP's EBIT margins improved by 6.4 percentage points to reach 65%, underscoring its revenue growth.
Insider Confidence in AMP
AMP insiders have not only refrained from reducing their shares but instead have invested AU$222k over the year, demonstrating their optimism about the company's prospects. Notably, Independent Non-Executive Director Anna Leibel made a prominent purchase worth AU$52k at approximately AU$1.53 per share. This strong insider confidence often indicates a positive outlook.
Adding AMP to Your Watchlist
AMP's impressive EPS growth and insider buying activity present a compelling case to delve deeper into the company's potential. While time spent researching AMP should be fruitful, it is crucial to remain aware of associated risks. Monitoring AMP, along with other small-cap, undervalued companies with recent insider buying, can provide valuable investment insights.