Is MDxHealth SA’s (EBR:MDXH) CEO Being Overpaid?
Jan Groen has been the CEO of MDxHealth SA (EBR:MDXH) since 2010. 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. 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.
View our latest analysis for MDxHealth
How Does Jan Groen’s Compensation Compare With Similar Sized Companies?
According to our data, MDxHealth SA has a market capitalization of €128m, and pays its CEO total annual compensation worth US$487k. (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 US$416k. We looked at a group of companies with market capitalizations under €177m, and the median CEO compensation was €300k.
As you can see, Jan Groen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MDxHealth SA is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at MDxHealth has changed from year to year.
Is MDxHealth SA Growing?
MDxHealth SA has increased its earnings per share (EPS) by an average of 1.6% a year, over the last three years In the last year, its revenue is down -19%.
I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has MDxHealth SA Been A Good Investment?
With a three year total loss of 45%, MDxHealth SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared the total CEO remuneration paid by MDxHealth SA, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling MDxHealth shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.
