It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like GQG Partners (ASX:GQG). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

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How Fast Is GQG Partners Growing Its Earnings Per Share?

In the last three years GQG Partners' earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. To the delight of shareholders, GQG Partners' EPS soared from US$0.095 to US$0.14, over the last year. That's a commendable gain of 51%.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. While we note GQG Partners achieved similar EBIT margins to last year, revenue grew by a solid 47% to US$760m. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.ASX:GQG Earnings and Revenue History July 25th 2025

Check out our latest analysis for GQG Partners

In investing, as in life, the future matters more than the past. So why not check out this freeinteractive visualization of GQG Partners' forecast profits?

Are GQG Partners Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. 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.

It's pleasing to note that insiders spent US$8.5m buying GQG Partners shares, over the last year, without reporting any share sales whatsoever. Knowing this, GQG Partners will have have all eyes on them in anticipation for the what could happen in the near future. We also note that it was the Founder, Rajiv Jain, who made the biggest single acquisition, paying AU$534k for shares at about AU$1.94 each.

Story Continues

And the insider buying isn't the only sign of alignment between shareholders and the board, since GQG Partners insiders own more than a third of the company. Indeed, with a collective holding of 74%, company insiders are in control and have plenty of capital behind the venture. This should be seen as a good thing, as it means insiders have a personal interest in delivering the best outcomes for shareholders. at the current share price. This is an incredible endorsement from them.

Is GQG Partners Worth Keeping An Eye On?

You can't deny that GQG Partners has grown its earnings per share at a very impressive rate. That's attractive. Not only that, but we can see that insiders both own a lot of, and are buying more shares in the company. These things considered, this is one stock worth watching. We don't want to rain on the parade too much, but we did also find 1 warning sign for GQG Partners that you need to be mindful of.

There are plenty of other companies that have insiders buying up shares. So if you like the sound of GQG Partners, you'll probably love this curated collection of companies in AU that have an attractive valuation alongside 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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