If EPS Growth Is Important To You, Boot Barn Holdings (NYSE:BOOT) Presents An Opportunity
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. 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 Boot Barn Holdings (NYSE:BOOT). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Boot Barn Holdings with the means to add long-term value to shareholders.
Boot Barn Holdings' Improving Profits
Even modest earnings per share growth (EPS) can create meaningful value, when it is sustained reliably from year to year. So EPS growth can certainly encourage an investor to take note of a stock. Boot Barn Holdings' EPS skyrocketed from US$5.05 to US$6.83, in just one year; a result that's bound to bring a smile to shareholders. That's a commendable gain of 35%.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Boot Barn Holdings achieved similar EBIT margins to last year, revenue grew by a solid 18% to US$2.1b. That's encouraging news for the company!
In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.
See our latest analysis for Boot Barn Holdings
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Boot Barn Holdings?
Are Boot Barn Holdings Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a US$5.7b company like Boot Barn Holdings. But we are reassured by the fact they have invested in the company. As a matter of fact, their holding is valued at US$20m. That shows significant buy-in, and may indicate conviction in the business strategy. While their ownership only accounts for 0.4%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, you'd argue that they are indeed. For companies with market capitalisations between US$4.0b and US$12b, like Boot Barn Holdings, the median CEO pay is around US$8.2m.
Boot Barn Holdings' CEO took home a total compensation package of US$3.6m in the year prior to March 2025. First impressions seem to indicate a compensation policy that is favourable to shareholders. 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 Boot Barn Holdings Worth Keeping An Eye On?
You can't deny that Boot Barn Holdings has grown its earnings per share at a very impressive rate. That's attractive. If you still have your doubts, remember too that company insiders have a considerable investment aligning themselves with the shareholders and CEO pay is quite modest compared to similarly sized companiess. This may only be a fast rundown, but the key takeaway is that Boot Barn Holdings is worth keeping an eye on. However, before you get too excited we've discovered 1 warning sign for Boot Barn Holdings that you should be aware of.
Although Boot Barn Holdings certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing.
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.