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 are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

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 Supreme (LON:SUP). While this doesn’t necessarily speak to whether it’s undervalued, the profitability of the business is enough to warrant some appreciation – especially if its growing.

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If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. It certainly is nice to see that Supreme has managed to grow EPS by 28% per year over three years. As a general rule, we’d say that if a company can keep up that sort of growth, shareholders will be beaming.

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 good news is that Supreme is growing revenues, and EBIT margins improved by 3.5 percentage points to 14%, over the last year. Ticking those two boxes is a good sign of growth, in our book.

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.

View our latest analysis for Supreme

Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Supreme .

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. Supreme followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. Given insiders own a significant chunk of shares, currently valued at UK£54m, they have plenty of motivation to push the business to succeed. Amounting to 32% of the outstanding shares, indicating that insiders are also significantly impacted by the decisions they make on the behalf of the business.