With EPS Growth and More, the Meta Financial Group (NASDAQ: CASH) is interesting

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<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Some have more money than sense, they say, even companies Investors who have no sales, profits and shortages can easily find investors, but as Peter Lynch said One up on Wall Street, & # 39; Long Shots almost never pay off. & # 39; "Data-reactid =" 27 "> Some have more money than it makes sense, so even companies that have no sales, no profit, and a record underfunding can easily find it. But as Peter Lynch said One up on Wall Street, & # 39; Long Shots almost never pay off. & # 39;

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "In contrast, I prefer to spend time for companies how Meta Financial Group (NASDAQ: CASH) that not only has income but also profits. This doesn't make the shares buyable at any price, but you can't deny that successful capitalism ultimately requires profit. While a well-financed company can suffer losses for years if its owners don't have an endless appetite to subsidize the customer, at some point it has to make a profit or take its last breath. "Data-reactid =" 28 "> In contrast to all of this, I prefer time for companies like Meta Financial Group (NASDAQ: CASH) that not only generates revenue but also profits. This doesn't make the shares buyable at any price, but you can't deny that successful capitalism ultimately requires profit. A well-financed company can suffer losses for years unless its owners have an inexhaustible appetite for subsidizing the customer, but must eventually make a profit or keep their breath.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = " Check out our latest analysis for the Meta Financial Group "data-reactid =" 29 "> Check out our latest analysis for the Meta Financial Group

How fast is the Meta Financial Group growing?

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If a company can further increase earnings per share (The share price of the Meta Financial Group (EPS) will follow long enough. No wonder that I like to invest in companies with EPS growth. Since a tree is constantly rising, the EPS of the Meta Financial Group is up 24% every year grown We would usually say if a company can keep up The "data-reactid =" 31 "> If a company can increase earnings per share (EPS) long enough, the share price will follow at some point, so it is no surprise that I would like to do that. Invest in companies with EPS growth with a tree constantly rising into the sky, the Meta Financial Group's EPS has grown by 24% per year over a period of three years The Kind of growth, shareholders will smile.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "I like to see the growth of the top line as an Indication that growth is sustainable and I expect high earnings before interest and taxes (EBIT) to indicate a competitive moat (although some low margin companies also have a moat) from the operational business was lower than sales in the past twelve months, so my analysis of profit margins could skew. The Meta Financial Group maintained a stable EBIT margin last year while increasing sales by 51% to $ 431 million. It is very positive. "Data-reactid =" 32 "> I like to see sales growth as a sign of sustainable growth and I expect a high profit margin before interest and taxes (EBIT) to indicate a competitive earnings moat (although some companies with low margins also have moats I find that Meta Financial Group’s sales from the operational business was lower than sales in the past twelve months, so my analysis of profit margins could skew. The Meta Financial Group maintained a stable EBIT margin last year while increasing sales by 51% to $ 431 million. It is very positive.

The graphic below shows how the company's income statement has evolved over time. Click on the table to see the exact numbers.

NasdaqGS: CASH Income Statement, January 4, 2020

<p class = "Screen-Atom Screen-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You do not drive your eyes on the rear view mirror, so that You may be more interested free Report with analyst forecasts for the Meta Financial Group future profits, "data-reactid =" 46 "> You don't have to look at the rearview mirror, so you may be more interested free Report with analyst forecasts for the Meta Financial Group future Profits.

Do the insiders of the Meta Financial Group agree with all shareholders?

I feel more secure about owning shares in a company if insiders also own shares, which helps align our interests better. It is therefore good to see that insiders of the Meta Financial Group have invested a significant part of the capital in the share. Indeed, there is a glittering mountain of wealth currently valued at $ 103 million. I would find this type of skin in the game very encouraging if I owned stocks, as doing so would ensure that the company's executives would also experience my success or failure with the stock.

It means a lot when insiders invest in the business, but I wonder if the compensation policy is shareholder-friendly. A brief analysis of CEO compensation suggests that this is the case. For companies with a market cap between $ 1.0 and $ 3.2 billion, such as the Meta Financial Group, the CEO's average salary is $ 3.9 million.

The Meta Financial Group offered its CEO total compensation of $ 3.3 million until September 2018. This remuneration is below the average of comparable companies and seems appropriate to me. The level of CEO compensation is not the most important measure for investors. However, if the remuneration is modest, it supports better coordination between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity in a broad sense.

Should You Add Meta Financial Group To Your Watch List?

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You cannot deny that Meta Financial Group has the result per share grew very impressively, which is attractive, and if that’s not enough, you think the CEO’s compensation is reasonable and the insiders are well invested with other shareholders. It’s worth keeping an eye on the Meta Financial Group Once you've found a company that you like, the next step is to think about what you think it is worth Discounted cash flow valuation by Meta Financial Group. You could benefit from taking a look today. "Data-reactid =" 56 "> You can't deny that the Meta Financial Group increased its earnings per share at a very impressive rate, which is attractive. If that's not enough, also consider that the compensation for the CEO is appropriate and insiders along with other shareholders are well invested may just be a quick loss, but for me it's important to keep an eye on the Meta Financial Group. If you want to, the next step is to consider what it is In your opinion, it’s worth it. Right now, you’ll be able to see our exclusive discounted cash flow assessment by Meta Financial Group.

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "You can invest in any company you want. But If you'd rather focus on stocks that showed insider buying, go here a list of companies that have made insider purchases in the past three months."data-reactid =" 57 "> You can invest in any company you want, but if you'd prefer to focus on stocks where insider buying has been demonstrated, you can find a list of companies in the past three months here Insider purchases were made.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Please note that the insider transactions dealt with in this article relate to reportable transactions in the respective jurisdiction"data-reactid =" 58 ">Please note that the insider transactions dealt with in this article relate to reportable transactions in the respective jurisdiction

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "If you discover an error that justifies a correction, please contact the editorial team at editorial-team@simplywallst.com, This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading."data-reactid =" 59 ">If you discover an error that justifies a correction, please contact the editorial team at editorial-team@simplywallst.com. This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading.