Compass Group
Market Cap
UK£27.5b
Last Updated
2021/05/16 02:18 UTC
Data Sources
Company Financials +
Executive Summary
Compass Group PLC, together with its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with imperfect balance sheet.
Similar Companies
Share Price & News
How has Compass Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CPG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CPG's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-5.2%
CPG
-3.9%
GB Hospitality
-1.2%
GB Market
1 Year Return
41.3%
CPG
58.7%
GB Hospitality
27.6%
GB Market
Return vs Industry: CPG underperformed the UK Hospitality industry which returned 58.7% over the past year.
Return vs Market: CPG exceeded the UK Market which returned 27.6% over the past year.
Shareholder returns
| CPG | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.2% | -3.9% | -1.2% |
| 30 Day | -3.1% | -3.0% | 0.6% |
| 90 Day | 2.9% | 5.3% | 5.3% |
| 1 Year | 41.3%41.3% | 62.9%58.7% | 33.1%27.6% |
| 3 Year | 1.1%-3.2% | 6.9%-2.7% | 11.1%-1.6% |
| 5 Year | 31.2%15.7% | 32.5%11.6% | 48.7%20.7% |
Long-Term Price Volatility Vs. Market
How volatile is Compass Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
At UK£15.73, Is Compass Group PLC (LON:CPG) Worth Looking At Closely?1 month ago | Simply Wall St
Compass Group PLC's (LON:CPG) Stock's Been Going Strong: Could Weak Financials Mean The Market Will Correct Its Share Price?1 month ago | Simply Wall St
Returns On Capital Signal Tricky Times Ahead For Compass Group (LON:CPG)Valuation
Is Compass Group undervalued compared to its fair value and its price relative to the market?
5.99x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: CPG (£15.4) is trading above our estimate of fair value (£11.62)
Significantly Below Fair Value: CPG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CPG is unprofitable, so we can't compare its PE Ratio to the UK Hospitality industry average.
PE vs Market: CPG is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CPG's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CPG is overvalued based on its PB Ratio (6x) compared to the GB Hospitality industry average (2.4x).
Future Growth
How is Compass Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
47.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).
Earnings vs Market: CPG is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CPG's is expected to become profitable in the next 3 years.
Revenue vs Market: CPG's revenue (11.5% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: CPG's revenue (11.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CPG's Return on Equity is forecast to be low in 3 years time (18.6%).
Past Performance
How has Compass Group performed over the past 5 years?
-17.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPG is currently unprofitable.
Growing Profit Margin: CPG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CPG is unprofitable, and losses have increased over the past 5 years at a rate of 17.8% per year.
Accelerating Growth: Unable to compare CPG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CPG is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-72.9%).
Return on Equity
High ROE: CPG has a negative Return on Equity (-7.62%), as it is currently unprofitable.
Financial Health
How is Compass Group's financial position?
Financial Position Analysis
Short Term Liabilities: CPG's short term assets (£4.2B) do not cover its short term liabilities (£4.6B).
Long Term Liabilities: CPG's short term assets (£4.2B) do not cover its long term liabilities (£4.8B).
Debt to Equity History and Analysis
Debt Level: CPG's debt to equity ratio (78%) is considered high.
Reducing Debt: CPG's debt to equity ratio has reduced from 158% to 78% over the past 5 years.
Debt Coverage: CPG's debt is well covered by operating cash flow (24%).
Interest Coverage: CPG is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Dividend
What is Compass Group current dividend yield, its reliability and sustainability?
1.92%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CPG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CPG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CPG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CPG is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CPG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Dominic Blakemore (51 yo)
3.33yrs
Tenure
UK£1,162,000
Compensation
Mr. Dominic Blakemore serves as an Non-Executive Director at London Stock Exchange Group Plc since January 01, 2020. Mr. Blakemore is the Group Chief Executive of Compass Group PLC since January 1, 2018. M...
CEO Compensation Analysis
Compensation vs Market: Dominic's total compensation ($USD1.64M) is below average for companies of similar size in the UK market ($USD3.64M).
Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CPG's management team is considered experienced (3.5 years average tenure).
Board Members
Experienced Board: CPG's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.3%.
Top Shareholders
Company Information
Compass Group PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Compass Group PLC
- Ticker: CPG
- Exchange: LSE
- Founded: 1941
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: UK£27.471b
- Shares outstanding: 1.78b
- Website: https://www.compass-group.com
Number of Employees
Location
- Compass Group PLC
- Compass House
- Guildford Street
- Chertsey
- Surrey
- KT16 9BQ
- United Kingdom
Listings
Biography
Compass Group PLC, together with its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. It serves business and industry; healthcare and senior livi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/16 02:18 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.