08 Feb Jon Cartu Announces: Does Jinhui Shipping and Transportation Limited’s (OB:JIN)
The CEO of Jinhui Shipping and Transportation Limited (OB:JIN) is Thomas Ng. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Thomas Ng’s Compensation Compare With Similar Sized Companies?
Our data indicates that Jinhui Shipping and Transportation Limited is worth kr540m, and total annual CEO compensation was reported as US$3.4m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$2.8m. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$408k.
Thus we can conclude that Thomas Ng receives more in total compensation than the median of a group of companies in the same market, and of similar size to Jinhui Shipping and Transportation Limited. 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 Jinhui Shipping and Transportation has changed over time.
Is Jinhui Shipping and Transportation Limited Growing?
Over the last three years Jinhui Shipping and Transportation Limited has grown its earnings per share (EPS) by an average of 127% per year (using a line of best fit). Its revenue is down 23% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Jinhui Shipping and Transportation Limited Been A Good Investment?
Since shareholders would have lost about 51% over three years, some Jinhui Shipping and Transportation Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Jinhui Shipping and Transportation Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jinhui Shipping and Transportation.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at [email protected]. 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.
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