ADvTECH (JSE:ADH), a profitable and expanding company, is attracting the attention of investors who prefer steady growth over high-risk investments. The company has demonstrated its ability to generate consistent profits, which, according to investors, will continue to add long-term value for shareholders.
Over the past three years, ADvTECH has managed to grow its earnings per share (EPS) by 29% per year, a trend that if sustained, promises a bright future for shareholders. The company's top-line growth is another indicator of its sustainable growth. Despite the EBIT margins remaining relatively unchanged over the past year, the company reported a revenue growth of 17% to R7.5b, marking a positive development for the company.
However, investors are advised to assess ADvTECH's balance sheet strength before making any decisions as a weak balance sheet could potentially be detrimental in the future.
ADvTECH insiders have shown alignment with all shareholders by investing significantly in the company. Their holding is valued at R255m, which while only about 2.1% of the company, is substantial enough to reflect their commitment to the business and its long-term value.
The remuneration levels of the company leaders are also deemed reasonable. The CEO of ADvTECH received R9.8m in compensation for the year ending December 2022, coming in below the average for similar-sized companies. This modest remuneration suggests that the board keeps shareholder interests in mind and can be viewed as an indication of good decision-making.
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