Mark Harding became the CEO of Pure Cycle Corporation (NASDAQ:PCYO) in 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mark Harding's Compensation Compare With Similar Sized Companies?
According to our data, Pure Cycle Corporation has a market capitalization of US$277m, and paid its CEO total annual compensation worth US$986k over the year to August 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$400k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.
So Mark Harding receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Pure Cycle, below.
Is Pure Cycle Corporation Growing?
Over the last three years Pure Cycle Corporation has grown its earnings per share (EPS) by an average of 109% per year (using a line of best fit). In the last year, its revenue is up 193%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Pure Cycle Corporation Been A Good Investment?
Most shareholders would probably be pleased with Pure Cycle Corporation for providing a total return of 137% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Mark Harding is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Pure Cycle shares with their own money (free access).
If you want to buy a stock that is better than Pure Cycle, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.