Compass Group
Market Cap
UK£19.7b
Last Updated
2020/04/07 20:48 UTC
Data Sources
Company Financials +
Executive Summary
Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with moderate growth potential.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.8%
CPG
0.7%
GB Hospitality
1.7%
GB Market
1 Year Return
-30.8%
CPG
-23.0%
GB Hospitality
-21.8%
GB Market
Return vs Industry: CPG underperformed the UK Hospitality industry which returned -26.7% over the past year.
Return vs Market: CPG underperformed the UK Market which returned -23.6% over the past year.
Shareholder returns
| CPG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | 0.7% | 1.7% |
| 30 Day | -21.5% | -18.5% | -12.0% |
| 90 Day | -34.6% | -32.2% | -25.3% |
| 1 Year | -29.3%-30.8% | -21.0%-23.0% | -17.9%-21.8% |
| 3 Year | -13.7%-22.1% | -14.3%-22.8% | -11.8%-22.8% |
| 5 Year | 15.2%-1.0% | -1.6%-16.8% | 0.1%-22.4% |
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
What Is Compass Group's (LON:CPG) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
What Type Of Shareholder Owns Compass Group PLC's (LON:CPG)?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 (£12.42) is trading below our estimate of fair value (£12.46)
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 good value based on its PE Ratio (17.7x) compared to the Hospitality industry average (18.1x).
PE vs Market: CPG is poor value based on its PE Ratio (17.7x) compared to the UK market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: CPG is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: CPG is overvalued based on its PB Ratio (5.9x) compared to the GB Hospitality industry average (1x).
Next Steps
Future Growth
How is Compass Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPG's forecast earnings growth (10.1% per year) is above the savings rate (0.5%).
Earnings vs Market: CPG's earnings (10.1% per year) are forecast to grow slower than the UK market (15.5% per year).
High Growth Earnings: CPG's earnings are forecast to grow, but not significantly.
Revenue vs Market: CPG's revenue (3.7% per year) is forecast to grow faster than the UK market (2.5% per year).
High Growth Revenue: CPG's revenue (3.7% 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 (30.5%)
Next Steps
Past Performance
How has Compass Group performed over the past 5 years?
6.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPG has high quality earnings.
Growing Profit Margin: CPG's current net profit margins (4.5%) are lower than last year (4.9%).
Past Earnings Growth Analysis
Earnings Trend: CPG's earnings have grown by 6.9% per year over the past 5 years.
Accelerating Growth: CPG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CPG had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).
Return on Equity
High ROE: Whilst CPG's Return on Equity (33.25%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Compass Group's financial position?
Financial Position Analysis
Short Term Liabilities: CPG's short term assets (£4.1B) do not cover its short term liabilities (£5.4B).
Long Term Liabilities: CPG's short term assets (£4.1B) do not cover its long term liabilities (£4.5B).
Debt to Equity History and Analysis
Debt Level: CPG's debt to equity ratio (115.2%) is considered high.
Reducing Debt: CPG's debt to equity ratio has reduced from 153.1% to 115.2% over the past 5 years.
Debt Coverage: CPG's debt is well covered by operating cash flow (50.4%).
Interest Coverage: CPG's interest payments on its debt are well covered by EBIT (14.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Compass Group's current dividend yield, its reliability and sustainability?
3.22%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CPG's dividend (3.22%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).
High Dividend: CPG's dividend (3.22%) is low compared to the top 25% of dividend payers in the UK market (7.08%).
Stability and Growth of Payments
Stable Dividend: CPG's dividends per share have been stable in the past 10 years.
Growing Dividend: CPG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.2%), 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 covered by earnings (50.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Dominic Blakemore (50yo)
2.25s
Tenure
UK£4,659,000
Compensation
Mr. Dominic Blakemore serves as an Independent 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 Januar ...
CEO Compensation Analysis
Compensation vs Market: Dominic's total compensation ($USD5.72M) is about average for companies of similar size in the UK market ($USD5.36M).
Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Director | 2.25yrs | UK£4.66m | 0.016% £3.1m | |
| CFO & Director | 1yr | UK£1.50m | 0.00069% £136.0k | |
| Group COO of North America & Executive Director | 13yrs | UK£6.01m | 0.017% £3.3m | |
| Managing Director | 2.67yrs | no data | no data | |
| Chief Corporate Investment & Risk Officer of Compass Group North America | no data | no data | no data | |
| Group Investor Relations & Corporate Affairs | 5.5yrs | no data | 0.0021% £410.1k | |
| Group General Counsel & Company Secretary | 1.5yrs | no data | no data | |
| Director of Corporate Policy and Communications | 13.83yrs | no data | no data | |
| Strategic Sales Director | 5.5yrs | no data | no data | |
| Chairman of Western Europe | no data | no data | no data |
4.1yrs
Average Tenure
54.5yo
Average Age
Experienced Management: CPG's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Director | 2.25yrs | UK£4.66m | 0.016% £3.1m | |
| CFO & Director | 1yr | UK£1.50m | 0.00069% £136.0k | |
| Group COO of North America & Executive Director | 13yrs | UK£6.01m | 0.017% £3.3m | |
| Non-Executive Chairman | 6.17yrs | no data | 0.0022% £439.6k | |
| Senior Independent Non-Executive Director | 1.83yrs | no data | 0.0011% £209.0k | |
| Non-Executive Director | 4.75yrs | no data | 0.00050% £98.6k | |
| Non-Executive Director | 3.92yrs | no data | 0.00037% £72.9k | |
| Non-Executive Director | 4.75yrs | no data | 0.00034% £67.0k | |
| Non-Executive Director | 5.83yrs | no data | 0.00066% £130.1k | |
| Non-Executive Director | 1.75yrs | no data | 0.00013% £25.6k |
4.8yrs
Average Tenure
58.5yo
Average Age
Experienced Board: CPG's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CPG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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£19.715b
- Shares outstanding: 1.59b
- Website: https://www.compass-group.com
Number of Employees
Location
- Compass Group PLC
- Compass House
- Guildford Street
- Chertsey
- Surrey
- KT16 9BQ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMPG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 2001 |
| XGR2 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 2001 |
| CPG | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Feb 2001 |
| XGR2 | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Feb 2001 |
| CPG N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Feb 2001 |
| CMPG.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jul 2001 |
Biography
Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. The company also 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. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 20:48 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.