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. 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 can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Firan Technology Group (TSE:FTG). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

View our latest analysis for Firan Technology Group

How Fast Is Firan Technology Group Growing Its Earnings Per Share?

Firan Technology Group has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Firan Technology Group's EPS has risen over the last 12 months, growing from CA$0.33 to CA$0.37. There's little doubt shareholders would be happy with that 12% gain.

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. While we note Firan Technology Group achieved similar EBIT margins to last year, revenue grew by a solid 43% to CA$150m. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

Since Firan Technology Group is no giant, with a market capitalisation of CA$152m, you should definitely check its cash and debt before getting too excited about its prospects.

Are Firan Technology 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. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

Not only did Firan Technology Group insiders refrain from selling stock during the year, but they also spent CA$168k buying it. That's nice to see, because it suggests insiders are optimistic. We also note that it was the President, Bradley Bourne, who made the biggest single acquisition, paying CA$65k for shares at about CA$4.97 each.