company background image
CPG

Compass GroupLSE:CPG Stock Report

Last Price

UK£16.81

Market Cap

UK£30.0b

7D

-2.2%

1Y

20.5%

Updated

21 Jan, 2022

Data

Company Financials +
CPG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance3/6
Financial Health5/6
Dividends2/6

CPG Stock Overview

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally.

Compass Group Competitors

SSP Group

LSE:SSPG

UK£2.2b

Mitchells & Butlers

LSE:MAB

UK£1.5b

McDonald's

NYSE:MCD

US$190.2b

Starbucks

NasdaqGS:SBUX

US$113.0b

Price History & Performance

Summary of all time highs, changes and price drops for Compass Group
Historical stock prices
Current Share PriceUK£16.81
52 Week HighUK£17.65
52 Week LowUK£12.84
Beta1.04
1 Month Change3.64%
3 Month Change16.54%
1 Year Change20.51%
3 Year Change5.93%
5 Year Change14.03%
Change since IPO179.56%

Recent News & Updates

Nov 27
Is Now The Time To Look At Buying Compass Group PLC (LON:CPG)?

Is Now The Time To Look At Buying Compass Group PLC (LON:CPG)?

Let's talk about the popular Compass Group PLC ( LON:CPG ). The company's shares saw significant share price movement...

Oct 28
Investors Could Be Concerned With Compass Group's (LON:CPG) Returns On Capital

Investors Could Be Concerned With Compass Group's (LON:CPG) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...

Oct 09
Calculating The Fair Value Of Compass Group PLC (LON:CPG)

Calculating The Fair Value Of Compass Group PLC (LON:CPG)

In this article we are going to estimate the intrinsic value of Compass Group PLC ( LON:CPG ) by projecting its future...

Shareholder Returns

CPGGB HospitalityGB Market
7D-2.2%-0.2%-0.5%
1Y20.5%2.5%8.7%

Return vs Industry: CPG exceeded the UK Hospitality industry which returned 2.5% over the past year.

Return vs Market: CPG exceeded the UK Market which returned 8.7% over the past year.

Price Volatility

Is CPG's price volatile compared to industry and market?
CPG volatility
CPG Average Weekly Movement4.8%
Hospitality Industry Average Movement5.4%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: CPG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CPG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1941480,000Dominic Blakemorehttps://www.compass-group.com

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors.

Compass Group Fundamentals Summary

How do Compass Group's earnings and revenue compare to its market cap?
CPG fundamental statistics
Market CapUK£29.98b
Earnings (TTM)UK£357.00m
Revenue (TTM)UK£17.91b

84.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPG income statement (TTM)
RevenueUK£17.91b
Cost of RevenueUK£17.21b
Gross ProfitUK£703.00m
ExpensesUK£346.00m
EarningsUK£357.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

May 11, 2022

Earnings per share (EPS)0.20
Gross Margin3.93%
Net Profit Margin1.99%
Debt/Equity Ratio73.9%

How did CPG perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

70%

Payout Ratio

Valuation

Is Compass Group undervalued compared to its fair value and its price relative to the market?

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPG (£16.81) is trading below our estimate of fair value (£16.86)

Significantly Below Fair Value: CPG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CPG is poor value based on its PE Ratio (84x) compared to the UK Hospitality industry average (47.7x).

PE vs Market: CPG is poor value based on its PE Ratio (84x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: CPG is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CPG is overvalued based on its PB Ratio (6.1x) compared to the GB Hospitality industry average (2.2x).


Future Growth

How is Compass Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPG's forecast earnings growth (24.8% per year) is above the savings rate (0.9%).

Earnings vs Market: CPG's earnings (24.8% per year) are forecast to grow faster than the UK market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CPG's revenue (10.7% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: CPG's revenue (10.7% 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 high in 3 years time (21.9%)


Past Performance

How has Compass Group performed over the past 5 years?

-27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPG has a large one-off loss of £205.0M impacting its September 30 2021 financial results.

Growing Profit Margin: CPG's current net profit margins (2%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: CPG's earnings have declined by 27% per year over the past 5 years.

Accelerating Growth: CPG's earnings growth over the past year (168.4%) exceeds its 5-year average (-27% per year).

Earnings vs Industry: CPG earnings growth over the past year (168.4%) exceeded the Hospitality industry 24.8%.


Return on Equity

High ROE: CPG's Return on Equity (7.3%) is considered low.


Financial Health

How is Compass Group's financial position?


Financial Position Analysis

Short Term Liabilities: CPG's short term assets (£5.0B) do not cover its short term liabilities (£5.2B).

Long Term Liabilities: CPG's short term assets (£5.0B) exceed its long term liabilities (£4.7B).


Debt to Equity History and Analysis

Debt Level: CPG's net debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: CPG's debt to equity ratio has reduced from 134.4% to 73.9% over the past 5 years.

Debt Coverage: CPG's debt is well covered by operating cash flow (32.2%).

Interest Coverage: CPG's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Dividend

What is Compass Group current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPG's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: CPG's dividend (0.83%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

Stable Dividend: CPG's dividend payments have been volatile in the past 10 years.

Growing Dividend: CPG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70%), CPG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPG's dividends in 3 years are forecast to be well covered by earnings (48.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Dominic Blakemore (52 yo)

4yrs

Tenure

UK£3,211,000

Compensation

Mr. Dominic Blakemore serves as a 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. Mr...


CEO Compensation Analysis

Compensation vs Market: Dominic's total compensation ($USD4.35M) is about average for companies of similar size in the UK market ($USD3.96M).

Compensation vs Earnings: Dominic's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CPG's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: CPG's board of directors are considered experienced (6.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Compass Group PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Compass Group PLC
  • Ticker: CPG
  • Exchange: LSE
  • Founded: 1941
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: UK£29.980b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:16
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.