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. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

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 Brookfield Infrastructure (NYSE:BIPC). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Brookfield Infrastructure with the means to add long-term value to shareholders.

View our latest analysis for Brookfield Infrastructure

How Fast Is Brookfield Infrastructure Growing Its Earnings Per Share?

In business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. So a growing EPS generally brings attention to a company in the eyes of prospective investors. It's an outstanding feat for Brookfield Infrastructure to have grown EPS from US$1.94 to US$8.42 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company. This could point to the business hitting a point of inflection.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. On the one hand, Brookfield Infrastructure's EBIT margins fell over the last year, but on the other hand, revenue grew. So it seems the future may hold further growth, especially if EBIT margins can remain steady.

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.

While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Brookfield Infrastructure's balance sheet strength, before getting too excited.

Are Brookfield Infrastructure 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. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

Not only did Brookfield Infrastructure insiders refrain from selling stock during the year, but they also spent US$142k buying it. This is a good look for the company as it paints an optimistic picture for the future. It is also worth noting that it was Independent Director Rajeev Vasudeva who made the biggest single purchase, worth US$89k, paying US$35.65 per share.

It's reassuring that Brookfield Infrastructure insiders are buying the stock, but that's not the only reason to think management are fair to shareholders. To be specific, the CEO is paid modestly when compared to company peers of the same size. Our analysis has discovered that the median total compensation for the CEOs of companies like Brookfield Infrastructure with market caps between US$4.0b and US$12b is about US$8.1m.

The Brookfield Infrastructure CEO received US$4.1m in compensation for the year ending December 2023. That is actually below the median for CEO's of similarly sized companies. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.

Is Brookfield Infrastructure Worth Keeping An Eye On?

Brookfield Infrastructure's earnings per share have been soaring, with growth rates sky high. The company can also boast of insider buying, and reasonable remuneration for the CEO. It could be that Brookfield Infrastructure is at an inflection point, given the EPS growth. For those attracted to fast growth, we'd suggest this stock merits monitoring. Even so, be aware that Brookfield Infrastructure is showing 4 warning signs in our investment analysis , and 1 of those is concerning...

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Brookfield Infrastructure, you'll probably love this curated collection of companies in the US 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.