Does Axis Real Estate Investment Trust (KLSE:AXREIT) Deserve A Spot On Your Watchlist?

For beginners, it can be a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it doesn’t have a track record of sales and profits. However, the reality is that if a company loses enough money each year, its investors usually take their share of those losses.

On the other hand, if you like companies that have sales and are even making profits, then you might be interested Axis Real Estate Investment Trust (KLSE: AXREIT). While that doesn’t make stocks worth it at any cost, it cannot be denied that successful capitalism ultimately requires profit. Loss-making companies always struggle against time to achieve financial sustainability, but time is often a friend of the profitable company, especially as it grows.

Check out our latest analysis for Axis Real Estate Investment Trust

How fast is the Axis Real Estate Investment Trust growing?

As one of my mentors once told me, the share price follows earnings per share (EPS). This makes EPS growth an attractive quality for every company. It’s certainly nice to see that Axis Real Estate Investment Trust managed to grow EPS by 19% per year over three years. If the company can sustain this growth, we would expect shareholders to emerge winners.

Careful consideration of sales growth and earnings before interest and taxes (EBIT) can help provide an overview of the sustainability of recent earnings growth. While Axis Real Estate Investment Trust’s EBIT margins have fallen, that’s not bad news as sales are at least stable. That doesn’t create a lot of confidence.

You can take a look at the company’s sales and earnings growth trend in the graph below. For finer details click on the picture.

KLSE: AXREIT earnings and earnings trend January 8, 2021

While we live in the present moment at all times, I have no doubt that the future is more important than the past. Check out this interactive chart of future EPS estimates for Axis Real Estate Investment Trust.

Are the Axis Real Estate Investment Trust insiders targeted at all shareholders?

I like corporate leaders to have some skin in it, so to speak, because it improves the alignment of incentives between the people who run the company and its real owners. So it’s good to see that Axis Real Estate Investment Trust insiders have invested a significant amount of capital in the stock. With shares valued at a whopping 327 million RM as a group, insiders can bet a lot on the company’s success. That stake amounts to 11% of the issued shares, making insiders influential and focused owners of the company.

Should you add Axis Real Estate Investment Trust to your watchlist?

For growth investors like me, the Axis Real Estate Investment Trust’s raw earnings growth rate is a beacon in the night. Additionally, I am impressed by the high level of insider ownership and suggests that I am not the only one appreciating EPS growth. So this is very likely the type of business I enjoy researching to see its real worth. However, it is worth noting that we found 4 warning signs for Axis Real Estate Investment Trust (2 don’t sit so well with us!) That you need to consider.

Of course, you can (sometimes) well buy stocks that don’t increase profits and insiders don’t buy stocks. But as a growth investor, I always enjoy looking at companies that do that to do have these functions. You can access a free list here.

Please note that the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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