Here’s why Bird Construction (TSE:BDT) has caught investors’ attention

For beginners, it may seem like a good (and exciting) idea to buy a company that tells investors a good story, even if it doesn’t yet have a track record of revenue and profits. Unfortunately, these high-risk investments often have little chance of paying off, and many investors pay the price to learn from them. While a well-funded company may suffer losses for years, it will eventually have to turn a profit, or investors will move on and the company will wither.

So if this idea of ​​high risk and high reward doesn’t appeal to you, you might be more interested in profitable, growing companies, like Bird building (TSE:BDT). While profit is not the only metric to consider when investing, it is worth recognizing companies that can consistently produce it.

Check out our latest analysis for Bird Construction

How fast does bird building grow?

The market is a voting machine in the short term, but a weighing machine in the long term. So we can expect the share price to follow earnings per share (EPS) results over time. This means that EPS growth is seen as a positive by most long-term investors. Impressively, Bird Construction has grown its EPS by 17% per year, compounded, over the last three years. If this growth continues in the future, shareholders will have plenty to celebrate.

A close look at revenue growth and EBIT (earnings before interest and tax) margins can help inform our view of the sustainability of recent profit growth. While we note that Bird Construction achieved similar EBIT margins to last year, revenue grew 21% to CA$3.0b. That’s progress.

The graph below shows how the company’s financial results and revenues have changed over time. For more details, click on the image.

The trick, as an investor, is to find companies that are go to Crystal balls don’t exist, but you can check out our free visualization of analyst consensus forecasts for Bird Construction’s future EPS.

Are Bird Construction insiders aligned with all shareholders?

Insider interest in a company always arouses a bit of curiosity, and many investors are on the lookout for companies where insiders walk the talk. Because often, buying shares is a sign that the buyer considers them undervalued. However, insiders are sometimes wrong, and we don’t know the exact logic behind their acquisitions.

The first bit of good news is that no Bird Construction member has reported selling shares in the past twelve months. Even better, Buildings West Executive Vice President Rob Otway bought CA$678,000 worth of shares, paying about CA$16.95 per share on average. Big purchases like this can signal an opportunity; actions speak louder than words.

The story continues

In addition to insider buying, it’s good to see that Bird Construction insiders have a valuable investment in the company. To be precise, they own CA$31 million worth of shares. This shows significant commitment and may indicate conviction in the business strategy. While they only represent 2.2% of the company, the value of this investment is enough to show that insiders have a lot to bet on the company.

Is bird building worth monitoring?

There’s no denying that Bird Construction has been growing its earnings per share at a very impressive rate. That’s attractive. Furthermore, the company’s management and board of directors own a significant stake in the company, with some of it contributing to that total. So it’s fair to say that this stock could well deserve a spot on your watchlist. You should always take note of the risks, for example – Bird Construction has 1 warning sign we think you should be aware of this.

Growth investors love to see insider activity. Fortunately, Bird Construction isn’t alone. You can check out a curated list of Canadian companies that have shown consistent growth accompanied by strong insider participation.

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

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

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