Compass Group
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Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. The last earnings update was 6 days ago. More info.
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CPG Share Price and Events
7 Day Returns
1 Year Returns
CPG Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Compass Group (CPG) | 4.2% | 4.8% | 4% | 11.7% | 33.7% | 62.3% |
| GB Hospitality | 2.6% | -0.3% | -2.5% | -9.1% | 9.8% | 29.5% |
| GB Market | 1.5% | -2.1% | 1.8% | -6.3% | 15.4% | 2% |
1 Year Return vs Industry and Market
- CPG outperformed the Hospitality industry which returned -9.1% over the past year.
- CPG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Value
Is Compass Group undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Compass Group
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Compass Group.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 22 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.1% |
| Perpetual Growth Rate | 10-Year GB Government Bond Rate | 1.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year GB Govt Bond Rate | 1.2% |
| Equity Risk Premium | S&P Global | 6.7% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.93 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.932 (1 + (1- 19%) (14.96%)) |
1.03 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.03 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.03 * 6.65%) |
8.07% |
Discounted Cash Flow Calculation for LSE:CPG using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Compass Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (GBP, Millions) | Source |
Present Value Discounted (@ 8.07%) |
|
|---|---|---|---|
| 2019 | 1,051.90 | Analyst x10 | 973.31 |
| 2020 | 1,211.25 | Analyst x14 | 1,037.01 |
| 2021 | 1,262.31 | Analyst x9 | 999.98 |
| 2022 | 1,233.00 | Analyst x1 | 903.78 |
| 2023 | 1,323.00 | Analyst x1 | 897.29 |
| 2024 | 1,350.42 | Est @ 2.07% | 847.46 |
| 2025 | 1,374.98 | Est @ 1.82% | 798.40 |
| 2026 | 1,397.55 | Est @ 1.64% | 750.87 |
| 2027 | 1,418.75 | Est @ 1.52% | 705.31 |
| 2028 | 1,439.04 | Est @ 1.43% | 661.94 |
| Present value of next 10 years cash flows | £8,575.34 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= £1,439.04 × (1 + 1.23%) ÷ (8.07% – 1.23%) |
£21,271.83 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= £21,271.83 ÷ (1 + 8.07%)10 |
£9,784.82 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= £8,575.34 + £9,784.82 |
£18,360.16 |
| Equity Value per Share (GBP) |
= Total value / Shares Outstanding
= £18,360.16 / 1,586.26 |
£11.57 |
| Calculation | Result | |
|---|---|---|
| Value per share (GBP) | From above. | £11.57 |
| Current discount | Discount to share price of
£18.01
= -1 x (£18.01 - £11.57) / £11.57 |
-55.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Compass Group is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Compass Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Compass Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in GBP | £0.74 |
| LSE:CPG Share Price ** | LSE (2019-05-21) in GBP | £18.01 |
| United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio | Median Figure of 34 Publicly-Listed Hospitality Companies | 17.83x |
| United Kingdom of Great Britain and Northern Ireland Market PE Ratio | Median Figure of 789 Publicly-Listed Companies | 16.22x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Compass Group.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = LSE:CPG Share Price ÷ EPS (both in GBP) = 18.01 ÷ 0.74 |
24.39x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Compass Group is overvalued based on earnings compared to the GB Hospitality industry average.
- Compass Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does
Compass Group's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 24.39x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts |
6.8%per year |
| United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio | Median Figure of 28 Publicly-Listed Hospitality Companies | 2.02x |
| United Kingdom of Great Britain and Northern Ireland Market PEG Ratio | Median Figure of 575 Publicly-Listed Companies | 1.5x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 24.39x ÷ 6.8% |
3.58x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Compass Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Compass Group's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in GBP | £1.78 |
| LSE:CPG Share Price * | LSE (2019-05-21) in GBP | £18.01 |
| United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio | Median Figure of 54 Publicly-Listed Hospitality Companies | 1.4x |
| United Kingdom of Great Britain and Northern Ireland Market PB Ratio | Median Figure of 1,368 Publicly-Listed Companies | 1.5x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = LSE:CPG Share Price ÷ Book Value per Share (both in GBP) = 18.01 ÷ 1.78 |
10.13x |
* Primary Listing of Compass Group.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Compass Group is overvalued based on assets compared to the GB Hospitality industry average.
Value checks
We assess Compass Group's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) Compass Group has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Compass Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
- Compass Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
- Compass Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| LSE:CPG Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts | 6.8% |
| LSE:CPG Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts | 5% |
| United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 12.1% |
| United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 5.8% |
| United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate | Market Cap Weighted Average | 11% |
| United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate | Market Cap Weighted Average | 5% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | 29,590 | 1 | ||
| 2022-09-30 | 28,758 | 1,586 | 2 | |
| 2021-09-30 | 27,331 | 2,253 | 1,452 | 17 |
| 2020-09-30 | 25,933 | 2,087 | 1,373 | 22 |
| 2019-09-30 | 24,601 | 1,900 | 1,283 | 18 |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 23,959 | 1,945 | 1,171 |
| 2018-12-31 | 23,462 | 1,909 | 1,148 |
| 2018-09-30 | 22,964 | 1,873 | 1,125 |
| 2018-06-30 | 22,675 | 1,744 | 1,137 |
| 2018-03-31 | 22,429 | 1,631 | 1,145 |
| 2017-12-31 | 22,499 | 1,632 | 1,153 |
| 2017-09-30 | 22,568 | 1,633 | 1,161 |
| 2017-06-30 | 22,054 | 1,625 | 1,135 |
| 2017-03-31 | 21,539 | 1,616 | 1,108 |
| 2016-12-31 | 20,572 | 1,520 | 1,050 |
| 2016-09-30 | 19,605 | 1,424 | 992 |
| 2016-06-30 | 18,895 | 1,335 | 950 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
All data from Compass Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | ||||
| 2022-09-30 | ||||
| 2021-09-30 | 0.93 | 0.98 | 0.88 | 6.00 |
| 2020-09-30 | 0.88 | 0.91 | 0.85 | 11.00 |
| 2019-09-30 | 0.81 | 0.83 | 0.78 | 9.00 |
| Date (Data in GBP Millions) | EPS * |
|---|---|
| 2019-03-31 | 0.74 |
| 2018-12-31 | 0.72 |
| 2018-09-30 | 0.71 |
| 2018-06-30 | 0.71 |
| 2018-03-31 | 0.70 |
| 2017-12-31 | 0.71 |
| 2017-09-30 | 0.71 |
| 2017-06-30 | 0.71 |
| 2017-03-31 | 0.70 |
| 2016-12-31 | 0.66 |
| 2016-09-30 | 0.63 |
| 2016-06-30 | 0.60 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Compass Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Compass Group has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Compass Group performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Compass Group's year on year earnings growth rate has been positive over the past 5 years.
- Compass Group's 1-year earnings growth is less than its 5-year average (2.3% vs 10.6%)
- Compass Group's earnings growth has not exceeded the GB Hospitality industry average in the past year (2.3% vs 12.8%).
Earnings and Revenue History
All data from Compass Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 23,959.00 | 1,171.00 | 1,034.00 | |
| 2018-12-31 | 23,461.50 | 1,148.00 | 1,034.00 | |
| 2018-09-30 | 22,964.00 | 1,125.00 | 1,034.00 | |
| 2018-06-30 | 22,674.50 | 1,136.50 | 1,015.00 | |
| 2018-03-31 | 22,429.00 | 1,145.00 | 996.00 | |
| 2017-12-31 | 22,498.50 | 1,153.00 | 996.00 | |
| 2017-09-30 | 22,568.00 | 1,161.00 | 996.00 | |
| 2017-06-30 | 22,053.50 | 1,134.50 | 926.00 | |
| 2017-03-31 | 21,539.00 | 1,108.00 | 856.00 | |
| 2016-12-31 | 20,572.00 | 1,050.00 | 856.00 | |
| 2016-09-30 | 19,605.00 | 992.00 | 856.00 | |
| 2016-06-30 | 18,895.00 | 949.50 | 429.50 | |
| 2016-03-31 | 18,185.00 | 907.00 | 3.00 | |
| 2015-12-31 | 17,887.50 | 888.00 | 4.00 | |
| 2015-09-30 | 17,590.00 | 869.00 | 5.00 | |
| 2015-03-31 | 17,237.00 | 879.00 | 5.00 | |
| 2014-12-31 | 17,045.50 | 870.50 | 5.50 | |
| 2014-09-30 | 16,854.00 | 862.00 | 6.00 | |
| 2014-03-31 | 17,311.00 | 447.00 | 4.00 | |
| 2013-12-31 | 17,434.00 | 436.50 | 6.00 | |
| 2013-09-30 | 17,557.00 | 426.00 | 8.00 | |
| 2013-03-31 | 17,159.00 | 602.00 | 6.00 | |
| 2012-12-31 | 17,032.00 | 603.50 | 6.50 | |
| 2012-09-30 | 16,905.00 | 605.00 | 7.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Compass Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Compass Group used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.
- Compass Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Compass Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Compass Group has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Compass Group's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Compass Group's finances.
The net worth of a company is the difference between its assets and liabilities.
- Compass Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Compass Group's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Compass Group Company Filings, last reported 1 month ago.
| Date (Data in GBP Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 2,845.00 | 4,275.00 | 611.00 |
| 2018-12-31 | 2,845.00 | 4,275.00 | 611.00 |
| 2018-09-30 | 2,640.00 | 4,469.00 | 1,003.00 |
| 2018-06-30 | 2,640.00 | 4,469.00 | 1,003.00 |
| 2018-03-31 | 2,304.00 | 4,081.00 | 433.00 |
| 2017-12-31 | 2,304.00 | 4,081.00 | 433.00 |
| 2017-09-30 | 2,120.00 | 3,976.00 | 391.00 |
| 2017-06-30 | 2,120.00 | 3,976.00 | 391.00 |
| 2017-03-31 | 2,807.00 | 3,403.00 | 425.00 |
| 2016-12-31 | 2,807.00 | 3,403.00 | 425.00 |
| 2016-09-30 | 2,520.00 | 3,406.00 | 348.00 |
| 2016-06-30 | 2,520.00 | 3,406.00 | 348.00 |
| 2016-03-31 | 2,137.00 | 3,397.00 | 375.00 |
| 2015-12-31 | 2,137.00 | 3,397.00 | 375.00 |
| 2015-09-30 | 1,950.00 | 2,963.00 | 302.00 |
| 2015-03-31 | 1,889.00 | 3,078.00 | 350.00 |
| 2014-12-31 | 1,889.00 | 3,078.00 | 350.00 |
| 2014-09-30 | 1,848.00 | 2,845.00 | 424.00 |
| 2014-03-31 | 2,700.00 | 2,161.00 | 710.00 |
| 2013-12-31 | 2,700.00 | 2,161.00 | 710.00 |
| 2013-09-30 | 2,790.00 | 2,269.00 | 1,013.00 |
| 2013-03-31 | 3,251.00 | 2,072.00 | 679.00 |
| 2012-12-31 | 3,251.00 | 2,072.00 | 679.00 |
| 2012-09-30 | 3,241.00 | 1,790.00 | 730.00 |
- Compass Group's level of debt (150.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (80.3% vs 150.3% today).
- Debt is well covered by operating cash flow (45.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).
Financial health checks
We assess Compass Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Compass Group has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Compass Group's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
£2,000 of
Compass Group
shares you are expected to receive
£42
in your first year as a dividend.
Dividend Amount
- Compass Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2%).
- Compass Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).
Upcoming dividend payment
Purchase Compass Group before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 32 Stocks | 3.2% |
| United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield | Market Cap Weighted Average of 705 Stocks | 4.3% |
| United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield | 10th Percentile | 1% |
| United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield | 25th Percentile | 2% |
| United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield | 75th Percentile | 5.3% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in £) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-09-30 | 0.52 | 1.00 |
| 2022-09-30 | 0.48 | 1.00 |
| 2021-09-30 | 0.46 | 17.00 |
| 2020-09-30 | 0.43 | 24.00 |
| 2019-09-30 | 0.40 | 22.00 |
| Date (Data in £) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-12-17 | 0.377 | 2.208 |
| 2018-11-20 | 0.377 | 2.248 |
| 2017-12-18 | 0.335 | 2.134 |
| 2017-11-21 | 0.335 | 2.212 |
| 2016-12-21 | 0.330 | 2.064 |
| 2016-11-22 | 0.330 | 2.311 |
| 2015-11-24 | 0.306 | 2.257 |
| 2014-12-19 | 0.276 | 2.406 |
| 2014-11-26 | 0.276 | 2.461 |
| 2014-02-10 | 0.265 | 2.546 |
| 2013-05-15 | 0.244 | 2.491 |
| 2012-11-21 | 0.235 | 2.713 |
| 2012-05-16 | 0.221 | 2.949 |
| 2011-11-23 | 0.213 | 3.100 |
| 2010-11-24 | 0.193 | 3.109 |
| 2009-11-27 | 0.146 | 2.595 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Compass Group has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Compass Group only paid a dividend in the past 9 years.
Income/ dividend checks
We assess Compass Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Compass Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Compass Group has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | £4,568,000 |
| AGE | 49 |
| TENURE AS CEO | 1.3 years |
CEO Bio
Mr. Dominic Blakemore is the Group Chief Executive of Compass Group PLC since January 1, 2018. Mr. Blakemore serves as Group Chief Operating Officer of Europe at Compass Group International B.V. Mr. Blakemore was the Deputy Chief Executive Officer of Compass Group PLC since October 1, 2017 until January 1, 2018. He has strategic and financial experience. He served as Chief Operating Officer of Europe at Compass Group PLC from December 1, 2015 to September 30, 2017 and served as its Chief Financial Officer also. He served as Group Finance Director of Compass Group PLC from April 2012 to December 1, 2015. He served as the Chief Financial Officer at Iglo Foods Group from 2010 to 2012 and was European Finance & Strategy Director, Corporate Finance Director, and Group Financial Controller at Cadbury plc. Mr. Blakemore is Member of the Academic Council of University College London. He has been a Director of Compass Group PLC since February 27, 2012. Mr. Blakemore was a Non-Executive Director of Shire plc since January 1, 2014 until April 24, 2018. He served as Director at Iglo Foods Holdings Limited and Iglo Foods Holdco Limited (now known as Nomad Foods Europe Holdings Limited) and Nomad Foods Europe Holdco Limited until December 19, 2011. He is Member of the Academic Council of University College London. He is a qualified accountant, having trained at PricewaterhouseCoopers where he advised pharmaceutical sector clients. He graduated in 1991 with a B.A. (Hons) in French from University College, London.
CEO Compensation
- Dominic's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
- Dominic's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure and age of the Compass Group management team in years:
- The tenure for the Compass Group management team is about average.
Management Team
Dominic Blakemore
Group Chief Executive & Director
£5M
49
1.3 yrs
Gary Green
Group COO of North America & Executive Director
£5M
61
7.1 yrs
Dev Amritesh
Managing Director
43
1.8 yrs
Karen Witts
CFO & Director
55
0.1 yrs
Sandra Moura
Head of Investor Relations & Corporate Affairs
4.6 yrs
Alison Yapp
Group General Counsel & Company Secretary
52
0.6 yrs
Michael Young
Director of Corporate Policy and Communications
12.9 yrs
Keith Francis
Strategic Sales Director
4.6 yrs
Robin Mills
Group HR Director
Antoine Cau
Chairman of Western Europe
69
Board of Directors Tenure
Average tenure and age of the Compass Group board of directors in years:
- The tenure for the Compass Group board of directors is about average.
Board of Directors
Paul Walsh
Non-Executive Chairman
£541K
63
5.3 yrs
Dominic Blakemore
Group Chief Executive & Director
£5M
49
7.3 yrs
Gary Green
Group COO of North America & Executive Director
£5M
61
12.1 yrs
Karen Witts
CFO & Director
55
0.1 yrs
John Bason
Senior Independent Non-Executive Director
£119K
60
0.9 yrs
Carol Arrowsmith
Non-Executive Director
£114K
64
4.9 yrs
Nelson Luiz Silva
Non-Executive Director
£104K
63
3.8 yrs
Ireena Vittal
Non-Executive Director
£84K
50
3.8 yrs
Stefan Bomhard
Non-Executive Director
£84K
50
3 yrs
Anne-Francoise Nesmes
Non-Executive Director
£21K
47
0.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (£) | Value (£) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 11. Feb 19 | Buy | John Bason | Individual | 08. Feb 19 | 11. Feb 19 | 2,282 | £17.60 | £40,025 | ||
| 26. Nov 18 | Sell | Mark Van Dyck | Individual | 26. Nov 18 | 26. Nov 18 | -5,775 | £16.94 | £-97,800 | ||
| 26. Nov 18 | Sell | Juergen Thamm | Individual | 26. Nov 18 | 26. Nov 18 | -8,032 | £16.94 | £-136,022 | ||
| 01. Aug 18 | Buy | Carol Arrowsmith | Individual | 30. Jul 18 | 30. Jul 18 | 75 | £16.27 | £1,220 | ||
| 01. Aug 18 | Buy | John Bason | Individual | 30. Jul 18 | 30. Jul 18 | 37 | £16.27 | £602 | ||
Management checks
We assess Compass Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Compass Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Should You Be Excited About Compass Group PLC's (LON:CPG) 41% Return On Equity?
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Compass Group: 41% = UK£1.2b ÷ UK£2.8b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Compass Group Have A Good Return On Equity? … Compass Group's Debt And Its 41% ROE It's worth noting the significant use of debt by Compass Group, leading to its debt to equity ratio of 1.50.
Simply Wall St - – Full articleCompass Group PLC (LON:CPG): Will The Growth Last?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … The latest earnings announcement Compass Group PLC (LON:CPG) released in September 2018a
Simply Wall St - – Full articleWho Has Been Selling Compass Group PLC (LON:CPG) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Compass Group PLC (LON:CPG). … Compass Group Insider Transactions Over The Last Year. … All up, insiders sold more shares in Compass Group than they bought, over the last year
Simply Wall St - – Full articleWhat Kind Of Investor Owns Most Of Compass Group PLC (LON:CPG)?
With a market capitalization of UK£28b, Compass Group is rather large. … institutional investors have bought into the company. … View our latest analysis for Compass Group
Simply Wall St - – Full articleCompass Group PLC (LON:CPG) Is Employing Capital Very Effectively
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleDid Compass Group's (LON:CPG) Share Price Deserve to Gain 73%?
For example, long term Compass Group PLC (LON:CPG) shareholders have enjoyed a 73% share price rise over the last half decade, well in excess of the market return of around 3.0% (not including dividends). … During five years of share price growth, Compass Group achieved compound earnings per share (EPS) growth of 22% per year. … The EPS growth is more impressive than the yearly share price gain of 12% over the same period.
Simply Wall St - – Full articleHow Do Analysts See Compass Group PLC (LON:CPG) Performing In The Year Ahead?
Based on Compass Group PLC's (LON:CPG) earnings update in September 2018,. … conservative, with earnings growth rate expected to be 15% next year, which is within range of the past five-year average earnings growth of 15%
Simply Wall St - – Full articleHere's What Compass Group PLC's (LON:CPG) P/E Is Telling Us
To keep it practical, we'll show how Compass Group PLC's (LON:CPG) P/E ratio could help you assess the value on offer. … How Do I Calculate Compass Group's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleHave Insiders Been Selling Compass Group PLC (LON:CPG) Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Compass Group PLC (LON:CPG). … The Last 12 Months Of Insider Transactions At Compass Group.
Simply Wall St - – Full articleWill Compass Group PLC's (LON:CPG) Earnings Grow In The Next Couple Of Years?
Compass Group PLC's (LON:CPG) most recent earnings update in September 2018a … indicated
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | Compass Group PLC |
| CPG | |
| Exchange: | LSE |
| Founded: | 1941 |
| £28,568,512,487 | |
| 1,586,258,328 | |
| Website: | http://www.compass-group.com |
| Address: |
Compass Group PLC Compass House, Guildford Street, Chertsey, Surrey, KT16 9BQ, United Kingdom |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| LSE | CPG | Ordinary Shares | London Stock Exchange | GB | GBP | 02. Feb 2001 | |
| OTCPK | CMPG.F | Ordinary Shares | Pink Sheets LLC | US | USD | 02. Feb 2001 | |
| DB | XGR2 | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 02. Feb 2001 | |
| OTCPK | CMPG.Y | SPONSORED ADR | Pink Sheets LLC | US | USD | 03. Jul 2001 |
Number of employees
Current staff
Industry
| Restaurants | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/21 20:49 |
| End of day share price update: | 2019/05/21 00:00 |
| Last estimates confirmation: | 2019/05/21 |
| Last earnings filing: | 2019/05/15 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
