Yahoo Finance I Ran A Stock Scan For Earnings Growth And Industrial Logistics Properties Trust (NASDAQ:ILPT) Passed With Ease
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. And in their study titled Who Falls Prey to the Wolf of Wall Street?' Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
In contrast to all that, I prefer to spend time on companies like Industrial Logistics Properties Trust (NASDAQ:ILPT), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
View our latest analysis for Industrial Logistics Properties Trust
How Quickly Is Industrial Logistics Properties Trust Increasing Earnings Per Share?
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. Industrial Logistics Properties Trust managed to grow EPS by 7.0% per year, over three years. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Unfortunately, Industrial Logistics Properties Trust's revenue dropped 13% last year, but the silver lining is that EBIT margins improved from 42% to 46%. That's not ideal.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
Fortunately, we've got access to analyst forecasts of Industrial Logistics Properties Trust's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.
Are Industrial Logistics Properties Trust Insiders Aligned With All Shareholders?
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
The good news for Industrial Logistics Properties Trust shareholders is that no insiders reported selling shares in the last year. With that in mind, it's heartening that Kevin Phelan, the Independent Trustee of the company, paid US$13k for shares at around US$26.54 each.
I do like that insiders have been buying shares in Industrial Logistics Properties Trust, but there is more evidence of shareholder friendly management. Specifically, the CEO is paid quite reasonably for a company of this size. For companies with market capitalizations between US$1.0b and US$3.2b, like Industrial Logistics Properties Trust, the median CEO pay is around US$3.5m.
The Industrial Logistics Properties Trust CEO received total compensation of just US$492k in the year to . That's clearly well below average, so at a glance, that arrangement seems generous to shareholders, and points to a modest remuneration culture. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.
Does Industrial Logistics Properties Trust Deserve A Spot On Your Watchlist?
One important encouraging feature of Industrial Logistics Properties Trust is that it is growing profits. And that's not all, folks. We've also seen insiders buying stock, and noted modest executive pay. If that doesn't automatically earn it a spot on your watchlist then I'd posit it warrants a closer look at the very least. It is worth noting though that we have found 3 warning signs for Industrial Logistics Properties Trust (1 is a bit unpleasant!) that you need to take into consideration.
The good news is that Industrial Logistics Properties Trust is not the only growth stock with insider buying. Here's a list of them... with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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