Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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 ValueMax Group (SGX:T6I). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide ValueMax Group with the means to add long-term value to shareholders.

View our latest analysis for ValueMax Group

ValueMax Group's Improving Profits

Even when EPS earnings per share (EPS) growth is unexceptional, company value can be created if this rate is sustained each year. So EPS growth can certainly encourage an investor to take note of a stock. In previous twelve months, ValueMax Group's EPS has risen from S$0.062 to S$0.066. That amounts to a small improvement of 5.9%.

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. EBIT margins for ValueMax 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 S$331m. That's a real positive.

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.

ValueMax Group isn't a huge company, given its market capitalisation of S$285m. That makes it extra important to check on its balance sheet strength.

Are ValueMax Group Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right.

First and foremost; there we saw no insiders sell ValueMax Group shares in the last year. But the really good news is that Executive Chairman Hiang Nam Yeah spent S$606k buying stock, at an average price of around S$0.34. Big buys like that may signal an opportunity; actions speak louder than words.