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. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

In contrast to all that, many investors prefer to focus on companies like Investec Group (JSE:INL), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Investec Group with the means to add long-term value to shareholders.

See our latest analysis for Investec Group

How Fast Is Investec Group Growing Its Earnings Per Share?

Over the last three years, Investec Group has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. Investec Group's EPS skyrocketed from UK￡0.52 to UK￡0.85, in just one year; a result that's bound to bring a smile to shareholders. That's a impressive gain of 64%.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. It's noted that Investec Group's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. EBIT margins for Investec Group remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 15% to UK￡2.2b. That's encouraging news for the company!

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.

You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Investec Group's future profits.

Are Investec Group Insiders Aligned With All Shareholders?

It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Investec Group shares worth a considerable sum. Indeed, they have a considerable amount of wealth invested in it, currently valued at UK￡3.3b. This suggests that leadership will be very mindful of shareholders' interests when making decisions!