Stock Analysis

Should You Be Pleased About The CEO Pay At Bridgemarq Real Estate Services Inc.'s (TSE:BRE)

  •  Updated
TSX:BRE
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The CEO of Bridgemarq Real Estate Services Inc. (TSE:BRE) is Phil Soper. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Bridgemarq Real Estate Services

How Does Phil Soper's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Bridgemarq Real Estate Services Inc. has a market cap of CA$196m, and reported total annual CEO compensation of CA$407k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$250k. We examined a group of similar sized companies, with market capitalizations of below CA$266m. The median CEO total compensation in that group is CA$210k.

Thus we can conclude that Phil Soper receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bridgemarq Real Estate Services Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Bridgemarq Real Estate Services has changed over time.

TSX:BRE CEO Compensation, February 11th 2020
TSX:BRE CEO Compensation, February 11th 2020

Is Bridgemarq Real Estate Services Inc. Growing?

On average over the last three years, Bridgemarq Real Estate Services Inc. has grown earnings per share (EPS) by 35% each year (using a line of best fit). In the last year, its revenue changed by just 0.8%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Bridgemarq Real Estate Services Inc. Been A Good Investment?

Bridgemarq Real Estate Services Inc. has served shareholders reasonably well, with a total return of 21% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at Bridgemarq Real Estate Services Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Shareholders may want to check for free if Bridgemarq Real Estate Services insiders are buying or selling shares.

If you want to buy a stock that is better than Bridgemarq Real Estate Services, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

About TSX:BRE

Bridgemarq Real Estate Services

Bridgemarq Real Estate Services Inc. provides various services to residential real estate brokers and REALTORS in Canada.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation1
Future Growth0
Past Performance1
Financial Health2
Dividends5

Read more about these checks in the individual report sections or in our analysis model.

Established dividend payer with imperfect balance sheet.