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. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
So if this idea of high risk and high reward doesn’t suit, you might be more interested in profitable, growing companies, like Japan Insulation (TSE:5368). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Japan Insulation with the means to add long-term value to shareholders.
We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
Japan Insulation’s Earnings Per Share Are Growing
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. That makes EPS growth an attractive quality for any company. We can see that in the last three years Japan Insulation grew its EPS by 13% per year. That’s a good rate of growth, if it can be sustained.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The music to the ears of Japan Insulation shareholders is that EBIT margins have grown from 8.3% to 11% in the last 12 months and revenues are on an upwards trend as well. Both of which are great metrics to check off for potential growth.
The chart below shows how the company’s bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
TSE:5368 Earnings and Revenue History February 18th 2026
View our latest analysis for Japan Insulation
Since Japan Insulation is no giant, with a market capitalisation of JP¥11b, you should definitely check its cash and debt before getting too excited about its prospects.
Are Japan Insulation Insiders Aligned With All Shareholders?
It’s a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. So it is good to see that Japan Insulation insiders have a significant amount of capital invested in the stock. Indeed, they hold JP¥2.1b worth of its stock. This considerable investment should help drive long-term value in the business. Those holdings account for over 20% of the company; visible skin in the game.
Is Japan Insulation Worth Keeping An Eye On?
As previously touched on, Japan Insulation is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. What about risks? Every company has them, and we’ve spotted 3 warning signs for Japan Insulation (of which 1 is potentially serious!) you should know about.
While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in JP with promising growth potential and insider confidence.
Please note 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 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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