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CPG

Compass Group LSE:CPG Stock Report

Last Price

UK£16.92

Market Cap

UK£30.4b

7D

0.7%

1Y

11.1%

Updated

29 Jun, 2022

Data

Company Financials +
CPG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends0/6

CPG Stock Overview

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

Compass Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Compass Group
Historical stock prices
Current Share PriceUK£16.92
52 Week HighUK£18.42
52 Week LowUK£13.96
Beta0.93
1 Month Change-6.00%
3 Month Change2.51%
1 Year Change11.14%
3 Year Change-13.41%
5 Year Change5.26%
Change since IPO181.39%

Recent News & Updates

Jun 29
Calculating The Fair Value Of Compass Group PLC (LON:CPG)

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

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Compass Group PLC...

May 28
We Think Compass Group (LON:CPG) Can Stay On Top Of Its Debt

We Think Compass Group (LON:CPG) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

CPGGB HospitalityGB Market
7D0.7%0.5%2.2%
1Y11.1%-15.8%-6.8%

Return vs Industry: CPG exceeded the UK Hospitality industry which returned -15.8% over the past year.

Return vs Market: CPG exceeded the UK Market which returned -6.8% over the past year.

Price Volatility

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

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£30.44b
Earnings (TTM)UK£734.00m
Revenue (TTM)UK£20.97b

40.9x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPG income statement (TTM)
RevenueUK£20.97b
Cost of RevenueUK£17.21b
Gross ProfitUK£3.77b
Other ExpensesUK£3.03b
EarningsUK£734.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 21, 2022

Earnings per share (EPS)0.41
Gross Margin17.96%
Net Profit Margin3.50%
Debt/Equity Ratio59.5%

How did CPG perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CPG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CPG?

Other financial metrics that can be useful for relative valuation.

CPG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA23.9x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does CPG's PE Ratio compare to its peers?

CPG PE Ratio vs Peers
The above table shows the PE ratio for CPG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.8x
GRG Greggs
16x6.0%UK£1.9b
MAB Mitchells & Butlers
7.8x19.3%UK£1.2b
DOM Domino's Pizza Group
14.1x2.0%UK£1.3b
YNGA Young's Brewery
26.8x12.7%UK£581.4m
CPG Compass Group
40.9x17.5%UK£30.4b

Price-To-Earnings vs Peers: CPG is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

How does CPG's PE Ratio compare vs other companies in the GB Hospitality Industry?

Price-To-Earnings vs Industry: CPG is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the UK Hospitality industry average (14x)


Price to Earnings Ratio vs Fair Ratio

What is CPG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CPG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.9x
Fair PE Ratio47.8x

Price-To-Earnings vs Fair Ratio: CPG is good value based on its Price-To-Earnings Ratio (40.9x) compared to the estimated Fair Price-To-Earnings Ratio (47.8x).


Share Price vs Fair Value

What is the Fair Price of CPG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CPG (£16.92) is trading below our estimate of fair value (£18.83)

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


Price to Earnings Growth Ratio

PEG Ratio: CPG is poor value based on its PEG Ratio (2.3x)


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPG's forecast earnings growth (17.5% per year) is above the savings rate (0.9%).

Earnings vs Market: CPG's earnings (17.5% per year) are forecast to grow faster than the UK market (11% per year).

High Growth Earnings: CPG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPG's revenue (8.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: CPG's revenue (8.6% 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 high in 3 years time (23.9%)


Discover growth companies

Past Performance

How has Compass Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-27.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPG has high quality earnings.

Growing Profit Margin: CPG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CPG's earnings have declined by 27.7% per year over the past 5 years.

Accelerating Growth: CPG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CPG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (186.6%).


Return on Equity

High ROE: CPG's Return on Equity (13.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Compass Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPG's short term assets (£5.0B) do not cover its short term liabilities (£5.6B).

Long Term Liabilities: CPG's short term assets (£5.0B) exceed its long term liabilities (£4.2B).


Debt to Equity History and Analysis

Debt Level: CPG's net debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: CPG's debt to equity ratio has reduced from 121.4% to 59.5% over the past 5 years.

Debt Coverage: CPG's debt is well covered by operating cash flow (39.7%).

Interest Coverage: CPG's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CPG's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: CPG's dividend (1.11%) is low compared to the top 25% of dividend payers in the UK market (5.17%).


Stability and Growth of Payments

Stable Dividend: CPG is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: CPG is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: CPG is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: CPG is not paying a notable dividend for the UK market.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

Dominic Blakemore (52 yo)

4.42yrs

Tenure

UK£3,211,000

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 ($USD3.89M) is about average for companies of similar size in the UK market ($USD5.17M).

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


Leadership Team

Experienced Management: CPG's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: CPG's board of directors are considered experienced (5 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 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£30.441b
  • 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 Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
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.