If EPS Growth Is Important To You, Jones Lang LaSalle (NYSE:JLL) Presents An Opportunity

Investors are often guided by the idea of ​​discovering ‘the next big thing’, even if that means buying ‘story stocks’ without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Jones Lang LaSalle (NYSE:JLL). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Jones Lang LaSalle with the means to add long-term value to shareholders.

See our latest analysis for Jones Lang LaSalle

How Quickly Is Jones Lang LaSalle Increasing Earnings Per Share?

The market is a voting machine in the short term, but a weighing machine in the long term, so you’d expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. It certainly is nice to see that Jones Lang LaSalle has managed to grow EPS by 26% 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 affirming.

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 music to the ears of Jones Lang LaSalle shareholders is that EBIT margins have grown from 6.7% to 10% in the last 12 months and revenues are on an upwards trend as well. That’s great to see, on both counts.

You can take a look at the company’s revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

NYSE:JLL Earnings and Revenue History June 24th 2022

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Jones Lang LaSalle’s forecast profit?

Are Jones Lang LaSalle Insiders Aligned With All Shareholders?

Owing to the size of Jones Lang LaSalle, we wouldn’t expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Holding US$61m worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders. That’s certainly enough to let shareholders know that management will be very focused on long term growth.

Does Jones Lang LaSalle Deserve A Spot On Your Watchlist?

You can’t deny that Jones Lang LaSalle has grown its earnings per share at a very impressive rate. That’s attractive. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Jones Lang LaSalle’s continuing strength. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it’s a good stock to follow. It’s still necessary to consider the ever-present spectrum of investment risk. We’ve identified 1 warning sign with Jones Lang LaSalle , and understanding it should be part of your investment process.

The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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