![]() While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. NYSE:VGR Earnings and Revenue History February 20th 2023 In the chart below, you can see how the company has grown earnings and revenue, over time. So if EBIT margins can stabilize, this top-line growth should pay off for shareholders. On the one hand, Vector Group's EBIT margins fell over the last year, but on the other hand, revenue grew. 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. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming. Shareholders will be happy to know that Vector Group's EPS has grown 20% each year, compound, over three years. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. See our latest analysis for Vector Group How Quickly Is Vector Group Increasing Earnings Per Share? Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Vector Group with the means to add long-term value to shareholders. In contrast to all that, many investors prefer to focus on companies like Vector Group ( NYSE:VGR), which has not only revenues, but also profits. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit.
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