Matthew Yum is the CEO of Hung Hing Printing Group Limited (HKG:450). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Matthew Yum's Compensation Compare With Similar Sized Companies?
According to our data, Hung Hing Printing Group Limited has a market capitalization of HK$935m, and paid its CEO total annual compensation worth HK$8.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$5.0m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.7m.
It would therefore appear that Hung Hing Printing Group Limited pays Matthew Yum more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Hung Hing Printing Group, below.
Is Hung Hing Printing Group Limited Growing?
On average over the last three years, Hung Hing Printing Group Limited has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 1.4% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Hung Hing Printing Group Limited Been A Good Investment?
Hung Hing Printing Group Limited has generated a total shareholder return of 6.4% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at Hung Hing Printing Group Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hung Hing Printing Group (free visualization of insider trades).
Important note: Hung Hing Printing Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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