Able Global Berhad: A Profitable Growth Story With Impressive Insider Ownership

When it comes to investing, many investors are attracted to companies with a compelling narrative, even if they haven’t yet shown consistent profits. However, for those seeking more stable returns, investing in companies that demonstrate strong growth and profitability can be a safer bet. One such company is Able Global Berhad (KLSE:ABLEGLOB), a profitable and growing business that has been catching the attention of investors.

Able Global Berhad: Consistent Earnings Growth

One of the key indicators of a company’s financial health is its Earnings Per Share (EPS) growth, and Able Global Berhad has been doing exceptionally well in this area. Over the past three years, the company has grown its EPS by a solid 22% per year on a compounded basis. This type of growth is not only impressive but also a positive sign for shareholders, as consistent EPS growth often correlates with long-term success and a strong share price performance.

Revenue and EBIT Margins on the Rise

In addition to EPS growth, it’s important to look at the company’s revenue and EBIT margins. Able Global Berhad has been expanding its revenues, and its EBIT margins improved by 5.7 percentage points, reaching an impressive 15% over the last year. This combination of revenue growth and margin expansion suggests that the company is not only growing but doing so in a way that enhances its profitability, a key factor in maintaining long-term shareholder value.

Strong Insider Ownership Indicates Confidence

For many investors, insider ownership is a key metric in evaluating a company’s prospects. High insider ownership often signals that the executives and managers of the company are aligned with the interests of shareholders. In the case of Able Global Berhad, insiders own 46% of the company, which is a significant stake. This means that those running the company are deeply invested in its success and are highly motivated to create value for shareholders. At current prices, insiders have around RM257 million riding on the stock, which is a clear sign of their confidence in the company’s future prospects.

Looking Ahead: What Analysts Predict

While past performance is a good indicator, it’s always helpful to consider what the future holds. Fortunately, analysts have provided forecasts for Able Global Berhad’s future profits, offering investors insight into how the company might perform in the coming years. Given the company’s solid track record of growth, these predictions could serve to reassure investors looking for stability and potential for further expansion.

The Bottom Line: A Solid Investment in Profitable Growth

Able Global Berhad’s combination of consistent earnings growth, improving margins, and strong insider ownership makes it a company worth considering for investors focused on profitable, growing businesses. With insiders having a significant stake in the company, it’s clear that they are fully invested in the company’s long-term success. For those seeking a company with solid fundamentals and promising growth, Able Global Berhad offers a compelling opportunity.