CPG Stock Overview
Compass Group PLC operates as a food and support services company in North America, Europe, and internationally.
CPG passed our risk checks.
Compass Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£16.92|
|52 Week High||UK£18.42|
|52 Week Low||UK£13.96|
|1 Month Change||-6.00%|
|3 Month Change||2.51%|
|1 Year Change||11.14%|
|3 Year Change||-13.41%|
|5 Year Change||5.26%|
|Change since IPO||181.39%|
Recent News & Updates
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...
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...
|CPG||GB Hospitality||GB Market|
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.
|CPG Average Weekly Movement||4.7%|
|Hospitality Industry Average Movement||5.5%|
|Market Average Movement||5.5%|
|10% most volatile stocks in GB Market||10.7%|
|10% least volatile stocks in GB Market||2.8%|
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
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
|CPG fundamental statistics|
Is CPG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CPG income statement (TTM)|
|Cost of Revenue||UK£17.21b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Nov 21, 2022
|Earnings per share (EPS)||0.41|
|Net Profit Margin||3.50%|
How did CPG perform over the long term?See historical performance and comparison
1.1%Current Dividend Yield
Is CPG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is CPG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CPG's PE Ratio compare to its peers?
|CPG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
MAB Mitchells & Butlers
DOM Domino's Pizza Group
YNGA Young's Brewery
CPG Compass Group
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.
|Current PE Ratio||40.9x|
|Fair PE Ratio||47.8x|
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)
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How is Compass Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%)
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How has Compass Group performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Compass Group's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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).
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What is Compass Group current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dominic Blakemore (52 yo)
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.
Experienced Management: CPG's management team is considered experienced (4 years average tenure).
Experienced Board: CPG's board of directors are considered experienced (5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Compass Group PLC's employee growth, exchange listings and data sources
- 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
- Compass Group PLC
- Compass House
- Guildford Street
- KT16 9BQ
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/29 00:00|
|End of Day Share Price||2022/06/29 00:00|
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.