Compass Group
Market Cap
UK£30.6b
Last Updated
2019/10/19 20:36 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.
Snowflake
Fundamentals
Average 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
Market Performance
7 Day Return
-4.0%
CPG
-1.2%
GB Hospitality
-0.4%
GB Market
1 Year Return
29.0%
CPG
16.7%
GB Hospitality
2.9%
GB Market
Return vs Industry: CPG exceeded the UK Hospitality industry which returned 16.7% over the past year.
Return vs Market: CPG exceeded the UK Market which returned 2.9% over the past year.
Shareholder returns
| CPG | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.0% | -1.2% | -0.4% |
| 30 Day | -5.0% | -1.1% | -1.4% |
| 90 Day | -1.8% | 0.9% | -2.1% |
| 1 Year | 31.9%29.0% | 21.1%16.7% | 7.9%2.9% |
| 3 Year | 38.6%24.7% | 27.9%14.5% | 18.0%3.6% |
| 5 Year | 123.8%91.6% | 63.4%37.7% | 35.8%6.4% |
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
Why Compass Group PLC (LON:CPG) Should Be In Your Dividend Portfolio3 weeks ago | Simply Wall St
Is Compass Group PLC's (LON:CPG) ROE Of 41% Impressive?1 month ago | Simply Wall St
Why Compass Group PLC's (LON:CPG) High P/E Ratio Isn't Necessarily A Bad ThingValuation
Is Compass Group undervalued compared to its fair value and its price relative to the market?
26.08x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: CPG (£19.27) is trading above our estimate of fair value (£13.71)
Significantly Undervalued: CPG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CPG is poor value based on its PE Ratio (26.1x) compared to the Hospitality industry average (24.7x).
PE vs Market: CPG is poor value based on its PE Ratio (26.1x) compared to the UK market (16.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: CPG is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: CPG is overvalued based on its PB Ratio (10.8x) compared to the GB Hospitality industry average (1.3x).
Next Steps
Future Growth
How is Compass Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
7.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPG's forecast earnings growth (7% per year) is above the savings rate (1.2%).
Earnings vs Market: CPG's earnings (7% per year) are forecast to grow slower than the UK market (12.6% per year).
High Growth Earnings: CPG's earnings are forecast to grow, but not significantly.
Revenue vs Market: CPG's revenue (5.2% per year) is forecast to grow faster than the UK market (3.9% per year).
High Growth Revenue: CPG's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: CPG's Return on Equity is forecast to be high in 3 years time (34%)
Next Steps
Past Performance
How has Compass Group performed over the past 5 years?
10.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CPG's earnings have grown by 10.6% per year over the past 5 years.
Accelerating Growth: CPG's earnings growth over the past year (2.3%) is below its 5-year average (10.6% per year).
Earnings vs Industry: CPG earnings growth over the past year (2.3%) underperformed the Hospitality industry 5.6%.
Return on Equity
High ROE: Whilst CPG's Return on Equity (41.41%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: CPG has a higher Return on Assets than the Hospitality industry average last year.
Return on Capital Employed
ROCE Improving: CPG's Return on Capital Employed has declined over the past 3 years.
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 (£4.8B)
Long Term Liabilities: CPG's short term assets (4.1B) do not cover its long term liabilities (4.9B)
Debt to Equity History and Analysis
Debt Level: CPG's debt to equity ratio (150.1%) is considered high
Reducing Debt: CPG's debt to equity ratio has increased from 79.5% to 150.1% over the past 5 years.
Debt Coverage: CPG's debt is well covered by operating cash flow (45.6%).
Interest Coverage: CPG's interest payments on its debt are well covered by EBIT (15.8x coverage).
Balance Sheet
Inventory Level: CPG has a low level of unsold assets or inventory.
Debt Coverage by Assets: CPG's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Compass Group's current dividend yield, its reliability and sustainability?
1.96%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CPG's dividend (1.96%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).
High Dividend: CPG's dividend (1.96%) is low compared to the top 25% of dividend payers in the UK market (5.36%).
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 (52.1%), 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 (47.6% payout ratio).
Next Steps
Management
What is the CEO of Compass Group's salary, the management and board of directors tenure and is there insider trading?
3.6yrs
Average management tenure
CEO
Dominic Blakemore (50yo)
1.8yrs
Tenure
UK£4,568,000
Compensation
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. Blakem ...
CEO Compensation Analysis
Compensation vs. Market: Dominic has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.
Compensation vs Earnings: Dominic's compensation has increased by more than 20% in the past year.
Management Age and Tenure
3.6yrs
Average Tenure
53yo
Average Age
Experienced Management: CPG's management team is considered experienced (3.6 years average tenure).
Board Age and Tenure
4.3yrs
Average Tenure
58.5yo
Average Age
Experienced Board: CPG's board of directors are considered experienced (4.3 years average tenure).
Insider Trading
Insider Buying: CPG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Group COO of North America & Executive Director |
| Shares | 142,180 |
| Max Price | UK£20.19 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 2,122 |
| Max Price | UK£18.74 |
| Entity | Individual |
| Role | Lead Director Senior Independent Non-Executive Director |
| Shares | 2,282 |
| Max Price | UK£17.60 |
| Entity | Individual |
| Shares | 8,032 |
| Max Price | UK£16.94 |
| Entity | Individual |
| Shares | 5,775 |
| Max Price | UK£16.94 |
Ownership Breakdown
Management Team
Gary Green (62yo)
Group COO of North America & Executive Director
- Tenure: 12.5yrs
- Compensation: UK£5.32m
Alison Yapp (53yo)
Group General Counsel & Company Secretary
- Tenure: 1yrs
Karen Witts (56yo)
CFO & Director
- Tenure: 0.5yrs
Michael Young
Director of Corporate Policy and Communications
- Tenure: 13.3yrs
Dev Amritesh (44yo)
Managing Director
- Tenure: 2.2yrs
Sandra Moura
Head of Investor Relations & Corporate Affairs
- Tenure: 5yrs
Robin Mills
Group HR Director
- Tenure: 0yrs
Keith Francis
Strategic Sales Director
- Tenure: 5yrs
Dominic Blakemore (50yo)
Group Chief Executive & Director
- Tenure: 1.8yrs
- Compensation: UK£4.57m
Palmer Brown
Chief Corporate Investment & Risk Officer of Compass Group North America
- Tenure: 0yrs
Board Members
Paul Walsh (64yo)
Non-Executive Chairman
- Tenure: 5.7yrs
- Compensation: UK£541.00k
John Bason (61yo)
Senior Independent Non-Executive Director
- Tenure: 1.3yrs
- Compensation: UK£119.00k
Gary Green (62yo)
Group COO of North America & Executive Director
- Tenure: 12.5yrs
- Compensation: UK£5.32m
Karen Witts (56yo)
CFO & Director
- Tenure: 0.5yrs
Nelson Luiz Silva (64yo)
Non-Executive Director
- Tenure: 4.3yrs
- Compensation: UK£104.00k
Stefan Bomhard (51yo)
Non-Executive Director
- Tenure: 3.4yrs
- Compensation: UK£84.00k
Dominic Blakemore (50yo)
Group Chief Executive & Director
- Tenure: 1.8yrs
- Compensation: UK£4.57m
Ireena Vittal (51yo)
Non-Executive Director
- Tenure: 4.3yrs
- Compensation: UK£84.00k
Carol Arrowsmith (65yo)
Non-Executive Director
- Tenure: 5.3yrs
- Compensation: UK£114.00k
Anne-Francoise Nesmes (48yo)
Non-Executive Director
- Tenure: 1.3yrs
- Compensation: UK£21.00k
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£30.562b
- 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 |
| 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 mar ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 20:36 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/03/31 |
| Annual Earnings | 2018/09/30 |
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.