Why Surgical Sciences Sweden (STO:SUS) attracted investor attention

Many investors, especially inexperienced investors, typically buy stocks in companies with a good story, even if the company is losing money. But as Peter Lynch said, One Up on Wall Street, “Long shots rarely pay off.” Because loss-making companies are always in a race against time to achieve financial sustainability, investors in these companies may be taking on more risk than necessary.

If this kind of company isn’t your style, but you like companies that generate revenue and even profits, you might be interested in companies like: surgery sweden (STO:SUS). Even though the company is valued fairly by the market, investors would agree that generating consistent profits continues to provide Surgical Sciences Sweden with the means to create long-term value for shareholders. .

See our latest analysis on Surgical Science in Sweden

Surgical Sciences Sweden Profit Improvement

Over the past three years, Surgical Sciences Sweden has grown its earnings per share (EPS) at an impressive pace, starting from a relatively weak period. As a result, the three-year growth rate is not particularly indicative of future performance. Therefore, for analysis purposes, it is better to isolate the growth rate over the past year. Surgical Sciences Sweden’s EPS rose over the past 12 months, increasing from SEK 3.70 to SEK 4.59. This is an increase of 24%. Admirable growth in a broader framework.

One way to double-check a company’s growth is to look at how its revenue and earnings before interest, tax, and tax (EBIT) margins are changing. Although Surgical Science Wednesday’s EBIT margin was roughly unchanged from last year, the company is pleased to see that its revenue for the period increased by 10% to SEK 883 million. That’s progress.

You can see the company’s revenue and profit growth trends in the graph below. Click on the image for more details.

Fortunately, we have access to the predictions of Swedish surgical science analysts. future profit. You can make your own predictions without looking at anything, or you can take a look at experts’ predictions.

Are Surgical Sciences Sweden insiders aligned with all shareholders?

Insider investing always provides reassurance to the market, as it is imperative that company leaders act in the best interests of shareholders. So it’s good to see Surgical Sciences Sweden insiders have significant capital invested in the stock. In fact, they have invested considerable wealth there, currently worth 2.5 billion kroner. This represents his 31% stake in the company. It is sufficient to guide management’s decision-making process in the direction that provides the greatest benefit to shareholders. That’s a very optimistic view for investors.

It’s always good to see strong belief in a company from insiders through significant investment, but it’s also important for shareholders to ask whether management’s remuneration policy is reasonable. Our quick analysis of CEO compensation seems to indicate that they are. Our analysis found that for companies like Surgical Sciences Sweden with market capitalizations between SEK 4.4b and SEK 1.7b, the median total CEO compensation is around SEK 8.1m.

The CEO of Surgical Sciences Sweden received compensation of SEK 5.2 million for the year ending December 2022. This is actually below the median CEO of similarly sized companies. CEO compensation may not be the most important aspect for a company to consider, but if it’s reasonable, it gives us a little bit more confidence that management is looking out for shareholder interests. More generally, it can also be a sign of good governance.

Is Swedish surgical science worth paying attention to?

One positive for Surgical Science Wednesday is that its EPS is growing. That makes me happy. EPS growth may be an eye-catching headline for Surgical Sciences Sweden, but it’s not the only thing that should please shareholders. Boasting both modest CEO pay and significant insider ownership, you’d argue that this company deserves at least a watch list. Well, you can decide whether to choose Surgical Sciences in Sweden by focusing on these factors alone. or you could Also Compare the company’s price-to-earnings ratio with its peers.

Selecting stocks with low earnings growth and no insider buying can still yield results, but for investors who value these important metrics, promising growth potential and insider confidence can yield results. Below is a selected list of SE companies with:

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

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