Revenue Growth Vs Eps Growth

If you are looking for long term sustainable dividend growth comparing the dividend ratio over several years shows whether the eps is growing fast enough to support the dividend growth rate.

Revenue growth vs eps growth. The eps rating takes into account the growth and stability of a company s earnings over the past three years with extra weighting put on the most recent two quarters. Net income growth rates is that eps growth reflects the dilution that occurs from new stock issuance the exercise of employee stock options warrants convertible. Eps growth earnings per share growth illustrates the growth of earnings per share over time. If a company has an eps of 5 00 in 2008 and eps of 6 00 in 2009 the company has an eps growth rate of 6 00 5 00 1 20 during fiscal year 2009.

Revenue it doesn t matter if the company is a service based company a manufacturer or an importer revenue is simply the amount of money the company s client have paid to the company. Earnings per share growth gives a good picture of the rate at which a company has grown its profitability. While the differences might be small they still prove that earnings is the true driver behind share price appreciation and not revenues. Earnings growth of 30.

Eps growth rates help investors identify stocks that are increasing or decreasing in profitability. Revenue growth of 30. Stockopedia explains eps gwth. A stock with a p e of 10 and earnings growth of 10 percent has a peg ratio of 1 while a stock.

Earnings per share eps is the portion of a company s profit allocated to each outstanding share of common stock. P e to earnings growth peg ratio. 4 800 000 4 000 000 800 000 and 800 000 4 000 000 20 x 100 20 percent revenue growth rate. One of the important differences vs.

Earnings per share serve as an indicator of a company s profitability. Large stable companies with steady earnings growth can afford a higher payout ratio than companies with inconsistent eps growth rates. Revenue and earnings per share eps can help you determine whether you should buy a stock by taking you from the beginning of the story to the end of the story. If the gross revenue in year 2 and year 1 was 4 800 000 and 4 000 000 respectively then revenue growth rate in year 2 would be.

One of the important differences vs. Net income growth rates is that eps growth reflects the dilution that occurs from new stock issuance the exercise of employee stock options warrants convertible. Stocks with higher earnings per share growth rates are generally more desirable than those with slower earnings per share growth rates. Year to date the earnings screen edged out revenues by 40bps.