Stock Analysis

How Should Investors React To CEMATRIX Corporation's (CVE:CVX) CEO Pay?

In 2008 Jeff Kendrick was appointed CEO of CEMATRIX Corporation (CVE:CVX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for CEMATRIX

How Does Jeff Kendrick's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that CEMATRIX Corporation has a market cap of CA$9.8m, and is paying total annual CEO compensation of CA$161k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$151k. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO compensation to be CA$155k.

That means Jeff Kendrick receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at CEMATRIX, below.

TSXV:CVX CEO Compensation December 5th 18
TSXV:CVX CEO Compensation December 5th 18

Is CEMATRIX Corporation Growing?

Over the last three years CEMATRIX Corporation has shrunk its earnings per share by an average of 99% per year. It achieved revenue growth of 44% over the last year.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching.

We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CEMATRIX Corporation Been A Good Investment?

Since shareholders would have lost about 27% over three years, some CEMATRIX Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Jeff Kendrick is close enough to the median pay for a CEO of a similar sized company .

We would like to see somewhat stronger per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CEMATRIX.

Or you might prefer gaze uponthis detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.

About TSX:CEMX

CEMATRIX

Through its subsidiaries, engages in the onsite production of cellular concrete for infrastructure, industrial, and commercial construction markets in North America.

Flawless balance sheet with high growth potential.

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