Henry Nahmad became the CEO of EVI Industries, Inc. (NYSEMKT:EVI) in 2015. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Henry Nahmad’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that EVI Industries, Inc. has a market cap of US$433m, and is paying total annual CEO compensation of US$950k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at US$550k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.
Most shareholders would consider it a positive that Henry Nahmad takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at EVI Industries has changed over time.
Is EVI Industries, Inc. Growing?
On average over the last three years, EVI Industries, Inc. has grown earnings per share (EPS) by 18% each year. Its revenue is up 51% over last year.
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 EVI Industries, Inc. Been A Good Investment?
Most shareholders would probably be pleased with EVI Industries, Inc. for providing a total return of 772% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It appears that EVI Industries, Inc. remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Henry Nahmad deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if EVI Industries insiders are buying or selling shares.
Or you might prefer gaze upon this 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 firstname.lastname@example.org.