The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

So if this idea of high risk and high reward doesn’t suit, you might be more interested in profitable, growing companies, like Focus Point Holdings Berhad (KLSE:FOCUSP). While profit isn’t the sole metric that should be considered when investing, it’s worth recognising businesses that can consistently produce it.

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Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. It certainly is nice to see that Focus Point Holdings Berhad has managed to grow EPS by 27% per year over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

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. EBIT margins for Focus Point Holdings Berhad remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 10% to RM297m. That’s encouraging news for the company!

In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.

Check out our latest analysis for Focus Point Holdings Berhad

Fortunately, we’ve got access to analyst forecasts of Focus Point Holdings Berhad’s future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Theory would suggest that it’s an encouraging sign to see high insider ownership of a company, since it ties company performance directly to the financial success of its management. So as you can imagine, the fact that Focus Point Holdings Berhad insiders own a significant number of shares certainly is appealing. In fact, they own 55% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. Intuition will tell you this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. To give you an idea, the value of insiders’ holdings in the business are valued at RM191m at the current share price. That’s nothing to sneeze at!