<!-- HTML_TAG_START -->NasdaqGS:COCO Earnings and Revenue History December 26th 2024<!-- HTML_TAG_END -->
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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. 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 Vita Coco Company (NASDAQ:COCO), 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 Vita Coco Company with the means to add long-term value to shareholders.
See our latest analysis for Vita Coco Company
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. Vita Coco Company managed to grow EPS by 13% per year, over three years. That’s a good rate of growth, if it can be sustained.
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. The music to the ears of Vita Coco Company shareholders is that EBIT margins have grown from 11% to 15% in the last 12 months and revenues are on an upwards trend as well. Both of which are great metrics to check off for potential growth.
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.
While we live in the present moment, there’s little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Vita Coco Company?
It’s a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own Vita Coco Company shares worth a considerable sum. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$223m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company’s future.
