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. 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.

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 Frequentis (ETR:FQT). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Frequentis with the means to add long-term value to shareholders.

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Even when EPS earnings per share (EPS) growth is unexceptional, company value can be created if this rate is sustained each year. So it’s no surprise that some investors are more inclined to invest in profitable businesses. Frequentis’ EPS has risen over the last 12 months, growing from €1.39 to €1.66. This amounts to a 19% gain; a figure that shareholders will be pleased to see.

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 Frequentis remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 12% to €482m. That’s progress.

The chart below shows how the company’s bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

See our latest analysis for Frequentis

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Frequentis’ forecast profits?

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. Frequentis followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. With a whopping €49m worth of shares as a group, insiders have plenty riding on the company’s success. That holding amounts to 8.0% of the stock on issue, thus making insiders influential owners of the business and aligned with the interests of shareholders.