For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and 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. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Worley (ASX:WOR). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

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How Fast Is Worley Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Shareholders will be happy to know that Worley's EPS has grown 34% each year, compound, over three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Worley's EBIT margins are flat but, worryingly, its revenue is actually down. This does not bode too well for short term growth prospects and so understanding the reasons for these results is of great importance.

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.ASX:WOR Earnings and Revenue History September 17th 2025

View our latest analysis for Worley

Fortunately, we've got access to analyst forecasts of Worley's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Worley Insiders Aligned With All Shareholders?

Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right.

Story Continues

Not only did Worley insiders refrain from selling stock during the year, but they also spent AU$281k buying it. That's nice to see, because it suggests insiders are optimistic. It is also worth noting that it was Independent Director Kim Gillis who made the biggest single purchase, worth AU$195k, paying AU$14.82 per share.

The good news, alongside the insider buying, for Worley bulls is that insiders (collectively) have a meaningful investment in the stock. We note that their impressive stake in the company is worth AU$268m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

Should You Add Worley To Your Watchlist?

For growth investors, Worley's raw rate of earnings growth is a beacon in the night. Furthermore, company insiders have been adding to their significant stake in the company. These things considered, this is one stock worth watching. What about risks? Every company has them, and we've spotted  1 warning sign for Worley  you should know about.

The good news is that Worley is not the only stock with insider buying. Here's  a list of small cap, undervalued companies in AU 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.

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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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