LSE:CPG

Stock Analysis Report

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Executive Summary

Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.3%

CPG

-5.2%

GB Hospitality

-3.3%

GB Market


1 Year Return

-43.7%

CPG

-40.1%

GB Hospitality

-17.2%

GB Market

Return vs Industry: CPG underperformed the UK Hospitality industry which returned -40.1% over the past year.

Return vs Market: CPG underperformed the UK Market which returned -17.2% over the past year.


Shareholder returns

CPGIndustryMarket
7 Day-6.3%-5.2%-3.3%
30 Day-2.4%-2.2%-3.7%
90 Day8.0%2.9%-3.4%
1 Year-42.9%-43.7%-38.3%-40.1%-13.8%-17.2%
3 Year-20.7%-25.2%-24.5%-31.4%-8.3%-19.5%
5 Year24.9%8.2%-3.6%-20.6%18.8%-8.1%

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

Valuation

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

18.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPG (£11.84) is trading above our estimate of fair value (£8.99)

Significantly Below Fair Value: CPG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPG is good value based on its PE Ratio (18.2x) compared to the GB Hospitality industry average (19.6x).

PE vs Market: CPG is poor value based on its PE Ratio (18.2x) compared to the UK market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: CPG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CPG is overvalued based on its PB Ratio (5.3x) compared to the GB Hospitality industry average (1.1x).


Next Steps

Future Growth

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

37.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPG's forecast earnings growth (37.8% per year) is above the savings rate (1.2%).

Earnings vs Market: CPG's earnings (37.8% per year) are forecast to grow faster than the UK market (23.7% per year).

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

Revenue vs Market: CPG's revenue (7.6% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: CPG's revenue (7.6% 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 (16.7%).


Next Steps

Past Performance

How has Compass Group performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPG has high quality earnings.

Growing Profit Margin: CPG's current net profit margins (4.1%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: CPG's earnings have grown by 4.9% 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 (-12.3%) over the past year, making it difficult to compare to the Hospitality industry average (-18%).


Return on Equity

High ROE: Whilst CPG's Return on Equity (29.12%) 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 (£4.2B) do not cover its short term liabilities (£6.0B).

Long Term Liabilities: CPG's short term assets (£4.2B) do not cover its long term liabilities (£5.4B).


Debt to Equity History and Analysis

Debt Level: CPG's debt to equity ratio (138%) is considered high.

Reducing Debt: CPG's debt to equity ratio has reduced from 162% to 138% over the past 5 years.

Debt Coverage: CPG's debt is well covered by operating cash flow (32.7%).

Interest Coverage: CPG's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.53%

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?

3.1yrs

Average management tenure


CEO

Dominic Blakemore (51 yo)

2.67yrs

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 ($USD5.96M) is about average for companies of similar size in the UK market ($USD5.06M).

Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dominic Blakemore
Group Chief Executive & Director2.67yrsUK£4.66m0.014%
£ 2.9m
Karen Witts
CFO & Director1.42yrsUK£1.50m0.00062%
£ 130.9k
Gary Green
Group COO of North America & Executive Director13.42yrsUK£6.01m0.015%
£ 3.1m
Dev Amritesh
Managing Director3.08yrsno datano data
Palmer Brown
Chief Corporate Investment & Risk Officer of Compass Group North Americano datano datano data
Sandra Moura
Group Investor Relations & Corporate Affairs5.92yrsno data0.0019%
£ 390.7k
Alison Yapp
Group General Counsel & Company Secretary1.92yrsno datano data
Michael Young
Director of Corporate Policy and Communications14.25yrsno datano data
Keith Francis
Strategic Sales Director5.92yrsno datano data
Sarah Morris
Group Chief People Officer0.33yrno datano data
Antoine Cau
Chairman of Western Europeno datano datano data
Didier Coutte
Group Managing Director of Franceno datano datano data

3.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CPG's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominic Blakemore
Group Chief Executive & Director2.67yrsUK£4.66m0.014%
£ 2.9m
Karen Witts
CFO & Director1.42yrsUK£1.50m0.00062%
£ 130.9k
Gary Green
Group COO of North America & Executive Director13.42yrsUK£6.01m0.015%
£ 3.1m
Paul Walsh
Independent Non-Executive Chairman6.58yrsno data0.0020%
£ 418.2k
John Bason
Senior Independent Non-Executive Director2.25yrsno data0.00094%
£ 198.5k
Ian Meakins
Non-Executive Directorno datano datano data
John Bryant
Independent Non-Executive Director2yrsno data0.00034%
£ 71.8k
Nelson Luiz Silva
Independent Non-Executive Director5.17yrsno data0.00044%
£ 92.9k
Stefan Bomhard
Independent Non-Executive Director4.33yrsno data0.00033%
£ 69.7k
Ireena Vittal
Independent Non-Executive Director5.17yrsno data0.00030%
£ 63.4k
Carol Arrowsmith
Independent Non-Executive Director6.25yrsno data0.00059%
£ 124.6k
Anne-Francoise Nesmes
Independent Non-Executive Director2.17yrsno data0.00012%
£ 25.3k

5.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: CPG's board of directors are considered experienced (5.2 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 12.4%.


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£21.120b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMPG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2001
XGR2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2001
CPGLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2001
XGR2XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURFeb 2001
CPGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2001
CPG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2001
CMPG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 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 mar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 03:17
End of Day Share Price2020/09/25 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.