With EPS Growth And More, Bank First (NASDAQ:BFC) Is Interesting

Simply Wall St

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. 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.

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Bank First (NASDAQ:BFC). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.

See our latest analysis for Bank First

Bank First's Earnings Per Share Are Growing.

As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. It certainly is nice to see that Bank First has managed to grow EPS by 22% per year over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners.

I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). I note that Bank First's revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. While we note Bank First's EBIT margins were flat over the last year, revenue grew by a solid 29% to US$95m. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

earnings-and-revenue-history
earnings-and-revenue-history

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

Are Bank First Insiders Aligned With All Shareholders?

It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own Bank First shares worth a considerable sum. With a whopping US$81m worth of shares as a group, insiders have plenty riding on the company's success. At 15% of the company, the co-investment by insiders gives me confidence that management will make long-term focussed decisions.

It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like Bank First with market caps between US$200m and US$800m is about US$1.7m.

The Bank First CEO received US$1.1m in compensation for the year ending . That seems pretty reasonable, especially given its below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.

Is Bank First Worth Keeping An Eye On?

You can't deny that Bank First has grown its earnings per share at a very impressive rate. That's attractive. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. This may only be a fast rundown, but the takeaway for me is that Bank First is worth keeping an eye on. You still need to take note of risks, for example - Bank First has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Latest Stories

  • Military on alert over Trump’s martial law threat: ‘The craziness is unprecedented’

    According to a new report, ranking officers have discussed what they would do if the president declared martial law. President Donald Trump has filed lawsuits after losing the 2020 presidential election and refuses to acknowledge the defeat. A new report claims military leaders have discussed their plan of action if POTUS were to declare martial law toward the last days of his term.

  • Saddam's deadly legacy: 40 years after war with Iran, border area is still littered with landmines

    At first glance, the Mawat district of north-east Iraq is a rustic idyll, a belt of rolling hills lined with olive and fruit groves. But on closer inspection - as many visitors have learned the hard way - it is full of hidden dangers. What looks like a Middle Eastern Tuscany was once on the frontline of Iraq's eight-year war with Iran, where Saddam Hussein's army planted vast quantities of land mines. Lurking in its gulleys and orchards are countless Russian and Italian anti-personnel devices - all still lethal. Today, despite nearly 30 years of mine clearance work, more than half remain - a glaring reminder of the scale of the so-called "legacy mine" threat in former warzones. "We get a lot of requests from mayors and villagers around here to clear the area," says Jabar Fatih Mahmoud, 49, an Iraqi employee of the Mines Advisory Group, the British charity, as he showed The Telegraph around a minefield listed on his clearance map as 'Kalka Shenka 2C'. "But this region is also popular with picnickers, and not everyone knows the mines are here." The minefields in Mawat and the surrounding governorate of Sulaymaniyah are a grim example of how such weapons are used not just for military purposes, but to actively punish civilian populations.

  • Israeli jets fly over Beirut, explosions reported in Syria

    Israeli jets flew very low over parts of Lebanon early Friday, terrifying residents on Christmas Eve, some of whom reported seeing missiles in the skies over Beirut. Minutes later, Syria's official news agency reported explosions in the central Syrian town of Masyaf. Other Syrian media said Syrian air defenses responded to an Israeli attack near the town in the Hama province.

  • Rand Paul Outlines $54 Billion in ‘Outlandish’ Government Waste in Annual Festivus Report

    Senator Rand Paul on Tuesday released his annual report outlining of billions of dollars in "truly outlandish" government waste.This year's "Festivus" waste report, a reference to the fictitious Seinfeld holiday's "airing of grievances," documented nearly $54,746,525,000 in money "totally wasted" by the government."Remember this the next time they tell you there’s 'nothing to cut,'" the Kentucky Republican wrote Wednesday in a Twitter thread highlighting parts of the report.Among Paul's instances of waste were several health studies, including more than $36 million spent on studying why stress makes hair turn gray, more than $1 million spent studying whether people will eat ground-up bugs, and more than $3 million spent interviewing San Franciscans about their edible cannabis use.As far as taxpayer dollars spent aiding other countries, $8.62 billion was spent in Afghanistan on counternarcotics efforts, more than $37 million was spent helping deal with truant Filipino youth, and more than $3 million was spent on sending Russians to American community colleges for a “gap year.”Among funds spent on the environment, energy, and scientific research, more than $1 million was spent walking lizards on a treadmill, nearly $200,000 was spent studying how people cooperate while playing e-sport video games, and more than $2 million on developing a wearable headset to track eating behaviors.The military had several particularly high expenditures this year that Paul listed as waste, including repurposing $1 billion in coronavirus response funds for unrelated acquisitions, more than $ 715 million in lost equipment designated for Syrians fighting ISIS, and $174 million on drones that were lost over Afghanistan.Other eyebrow-raising expenses included more than $4 million spent on spraying alcoholic rats with bobcat urine, more than $10 million spent on would-be coronavirus test tubes that turned up as used soda bottles, and nearly $6 million spent building three bicycle storage facilities at Washington, D.C. Metro stations.In 2020, "Congress spent as never before, doing so ostensibly without a care," the report reads. "Some of that is traceable to COVID-related spending, but a lot of it was not."

  • Trump’s complaints about foreign spending directed at budget he requested and GOP supported

    Republican House leader Kevin McCarthy claims Democrats obstructing president’s budget demands despite GOP support for same budget days earlier

  • Japan official, calling Taiwan 'red line,' urges Biden to 'be strong'

    A top Japanese defence official on Friday urged U.S. President-elect Joe Biden to "be strong" in supporting Taiwan in the face of an aggressive China, calling the island's safety a "red line." In an interview, Nakayama, Japan's deputy defence minister, urged Biden to take a similar line on Taiwan as outgoing President Donald Trump, who has significantly boosted military sales to the Chinese-claimed island and increased engagement.

  • Dog crushed to death by owner during confrontation with mugger

    A dog was crushed to death by its owner after she was knocked over during a confrontation with a mugger in an “unprovoked and unacceptable” attack. Norfolk Terrier, Rufus was crushed while the woman tried to pull the thief off her husband. The man, 56 and his 36 year old wife were walking their two dogs in Westminster, central London, when they were approached by a man pushing a bike along the footpath. The man, who wore a face covering and gloves, stopped the pair before pulling the watch off the man's arm, causing scratches to his forearm. The pair began to struggle and it was at this point that the wife tried to pull the mugger away during the attack at 4.15pm in Spanish Place on August 4.

  • Christmas in Florida: Chilly forecast, falling iguanas

    With unexpectedly cold weather in the forecast and pandemic-related curfews in some places, Florida is about to have a Christmas unlike any other in recent memory, and it may involve falling iguanas. The National Weather Service earlier this week warned that South Florida could experience the coldest Christmas Day in 21 years. Morning lows on Saturday could drop into the low 30s and 40s degrees Fahrenheit, the weather service said.

  • Creek Fire forces Christmas Eve evacuations north of San Diego

    Thousands of people were told to evacuate the Camp Pendleton military base and nearby communities as the Creek Fire spread.

  • No, China Did Not 'Expel' a US Warship from its Territory, Navy Says

    China called the McCain's movements "a serious violation" of its sovereignty and security.

  • Ghislaine Maxwell's lawyers defend divorce plan

    Ghislaine Maxwell only discussed getting a divorce from her husband before her arrest to "protect" him from the "terrible consequences" of being publicly linked to her, according to new court documents. As Ms Maxwell seeks bail prosecutors have argued that the divorce discussions undermined her claim that her marriage to tech CEO Scott Borgerson was a strong reason for her to stay in the United States to face trial. In a newly filed claim, lawyers for Ms Maxwell said: "Prior to her arrest Ms Maxwell and her spouse had discussed the idea of getting a divorce as an additional way to create distance between Ms Maxwell and her spouse to protect him... from the terrible consequences of being associated with her." They argued there was later no reason to continue the idea of a divorce, which "neither of them wanted in the first place", and that the US government had offered "nothing but unsupported innuendo." They added that the suggestion was "particularly callous and belied by the facts".

  • Commander threatens to target Turkish forces in Libya

    A Libyan commander who launched an offensive last year to capture the capital Tripoli from the U.N.-recognized rival government threatened Thursday to use force against Turkish troops if Ankara doesn't stop interfering in the war-stricken North African country. Khalifa Hifter's comments came in response to the Turkish parliament's decision to extend for 18 months a law that allows the deployment of Turkish troops to Libya. Turkey has also been accused of sending thousands of Syrian mercenaries to Libya.

  • South Dakota’s controversial governor wields flamethrower in Instagram post

    'Is it too late to add something to my Christmas list,’ she wrote.

  • Spain: King Felipe appears to criticise exiled father in Christmas speech

    King Felipe of Spain used his traditional Christmas Eve speech to make a renewed call for his nation's leaders to demonstrate exemplary behaviour, a message he delivered Thursday night amid a financial scandal centering on his father – the country's previous monarch. The king said in a televised address that citizens demand "principles that apply to everyone, without exception, and that are above any other considerations, including personal or family (bonds)." The message was widely interpreted as a rebuke to the alleged financial improprieties that are threatening to tarnish the once immaculate reputation of his father, Juan Carlos. Juan Carlos stunned his nation in August when he moved to the United Arab Emirates after it emerged that prosecutors in Spain and Switzerland were investigating him for possible financial wrongdoing. His status as Spain's former head of state means he is immune from prosecution for any offence committed during his 39-year reign. Read more: A wife, a lover and a hunting scandal. How Spain's King Juan Carlos fell from his throne

  • Erdogan says Turkey wants better ties with Israel, talks continue

    ANKARA (Reuters) -President Tayyip Erdogan said on Friday that Turkey would like to have better ties with Israel and that talks at intelligence level continued between the two sides, but criticised Israeli policy toward Palestinians as "unacceptable". The two countries have had a bitter falling out in recent years, despite strong commercial ties, expelling ambassadors in 2018. Ankara has repeatedly condemned Israel's occupation in the West Bank and its treatment of Palestinians.

  • Chinese vaccines are poised to fill gap, but will they work?

    With rich countries snapping up supplies of COVID-19 vaccines, some parts of the world may have to rely on Chinese-developed shots to try to conquer the outbreak. There is no outward reason to believe they won’t, but China has a history of vaccine scandals, and its drugmakers have revealed little about their final human trials and the more than 1 million emergency-use inoculations they say have been carried out inside the country already. Wealthy nations have reserved about 9 billion of the 12 billion mostly Western-developed shots expected to be produced next year, while COVAX, a global effort to ensure equal access to COVID-19 vaccines, has fallen short of i ts promised capacity of 2 billion doses.

  • Disgraced New York politician found limping by Ohio roadside 23 years after fleeing justice

    The former politician disappeared when he was sentenced for selling pistols without a permit

  • Aides fear what Trump will do next as his behavior proves to be erratic after the election

    With four weeks left in President Trump’s term, he is at perhaps his most unleashed — and, as events of the past few days have demonstrated, at the most unpredictable point in his presidency.

  • Two of Trump's pardons may set a precedent for letting the Trump campaign off the hook

    You know Dasher and Dancer and Roger and Kushner — but do you recall, the most consequential pardon of all?President Trump has issued a flurry of late-term pardons in the lead-up to his departure from office, the most recent of which includes Paul Manafort, Roger Stone, and Charles Kushner, father of Jared Kushner. But two of the president's pardons this week have flown relatively under the radar, despite offering a potential glimpse into Trump's own future.John Tate and Jesse Benton were two of 26 people granted clemency on Wednesday, receiving pardons for their 2016 convictions on campaign bribery charges. The two men, who were aides to former U.S. Rep. Ron Paul, were found guilty of funneling $73,000 to a state senator in exchange for an endorsement of Paul during his 2012 presidential bid, The Des Moines Register reports. The payments were executed through a third-party vendor.What Tate and Benton did, however, looks an awful lot like an LLC used by the Trump campaign to funnel non-FEC registered payments. The company was reportedly created in part by Jared Kushner, per Business Insider.In the White House's official statement on the pardons, it said Tate and Benton were convicted based on an "unclear" and "not well established" campaign reporting law.As the Center for Responsive Politics' Anna Massoglia points out, their conviction was one of few campaign finance cases "resulting in substantial consequences," and the pardoning of the two could send "a very specific message that it is okay to violate FEC ultimate vendor disclosure rules."> THREAD: Trump's John Tate & Jesse Benton pardons are an even bigger deal than they initially seem, sending a very specific message that it is ok to violate FEC ultimate vendor disclosure rules—which Trump's 2020 campaign allegedly violated by routing money through shell companies https://t.co/AK4AC6MHq2> > — Anna Massoglia (@annalecta) December 24, 2020More stories from theweek.com The history of Santa Claus: 7 interesting facts What would actually happen if Trump tried the 'martial law' idea? Wonder Woman 1984 is shockingly regressive

  • Ethiopia's army kills 42 in response to brutal massacre, officials say

    The Ethiopian army has killed 42 people it claims were responsible for massacring more than 100 civilians this week in the west of the country, officials said on Thursday. Eyewitnesses and officials said that at least 102 people were killed in a horrific ethnically fuelled pre-dawn massacre in the Metekel zone in the Benishangul-Gumuz early on Wednesday. The attackers reportedly set fields and homes ablaze, burning people alive as they slept. News of the massacre comes at a turbulent and dangerous moment in Africa’s second-most populous nation. Since early November the federal government and allied regional forces like Eritrea has been conducting a deadly military campaign in the northern Ethiopian province of Tigray to oust the powerful regional government there. The Tigray conflict has killed thousands and humanitarians estimate more than 1m people have been internally displaced in the northern region itself. The latest massacre in Benishangul-Gumuz is wholly separate from the conflict. But the conflict has been sucking up the government troops and resources, raising fears of a security vacuum elsewhere in regions prone to deadly ethnic violence. According to the Ethiopian Human Rights Commission, a government-affiliated body which first reported the massacre, no security forces were stationed in the area when the attack occurred. Separately from Tigray, prime minister Abiy Ahmed faces myriad challenges, including attempts to promote national unity in a country with more than 80 ethnic groups. Ethnic violence has been a significant problem since Mr Abiy was swept to power in 2018 on the back of widespread protests against the old ruling clique. Many fear the so-called ‘Balkanisation’ Ethiopia — break up of the country along ethnic lines. Contests over land and resources in Benishangul-Gumuz have spurred violence between ethnic groups, and this week’s massacre was just the latest gruesome atrocity in the region in recent months. Mr Abiy said he had sent a “joint force” to the area to “solve the problem.” “The Ethiopia Defence Force has destroyed 42 anti-peace forces who attacked civilians yesterday” in the Metekel zone, the regional government said in a statement on Thursday.