LSE:CPG

Stock Analysis Report

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

-0.7%

LSE:CPG

1.0%

GB Hospitality

-0.3%

GB Market


1 Year Return

20.5%

LSE:CPG

-2.4%

GB Hospitality

-5.3%

GB Market

CPG outperformed the Hospitality industry which returned -4.3% over the past year.

CPG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

CPGIndustryMarket
7 Day-0.7%1.0%-0.3%
30 Day4.9%0.7%-3.9%
90 Day14.3%4.6%-2.2%
1 Year23.2%20.5%1.0%-2.4%-0.9%-5.3%
3 Year47.1%32.4%19.7%7.9%18.9%5.1%
5 Year136.6%102.5%66.8%42.1%28.1%1.1%

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 based on future cash flows and its price relative to the stock market?

27.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Compass Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Compass Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Compass Group is poor value based on expected growth next year.


Price Based on Value of Assets

Compass Group is overvalued based on assets compared to the GB Hospitality industry average.


Next Steps

Future Growth

How is Compass Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Compass Group's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

Compass Group's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Compass Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Compass Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Compass Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Compass Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

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 4.7%).


Return on Equity

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.


Return on Assets

Compass Group used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Compass Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Compass Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Compass Group's level of debt (150.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (79.5% vs 150.1% today).

Debt is well covered by operating cash flow (45.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

2.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Compass Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Compass Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

What is the CEO of Compass Group's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Dominic Blakemore (50yo)

1.6yrs

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

Dominic's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Dominic's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

53yo

Average Age

The tenure for the Compass Group management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

58.5yo

Average Age

The tenure for the Compass Group board of directors is about average.


Insider Trading

Compass Group individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUK£2,871,12626 Jul 19
Gary Green
EntityIndividual
Role
Member of the Board of Directors
Group COO of North America & Executive Director
Shares142,180
Max PriceUK£20.19
BuyUK£39,74628 Jun 19
Anne-Francoise Nesmes
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,122
Max PriceUK£18.74
BuyUK£40,02511 Feb 19
John Bason
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares2,282
Max PriceUK£17.60
SellUK£136,02226 Nov 18
Juergen Thamm
EntityIndividual
Shares8,032
Max PriceUK£16.94
SellUK£97,80026 Nov 18
Mark Van Dyck
EntityIndividual
Shares5,775
Max PriceUK£16.94

Ownership Breakdown


Management Team

  • Gary Green (62yo)

    Group COO of North America & Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£5.32m
  • Alison Yapp (53yo)

    Group General Counsel & Company Secretary

    • Tenure: 0.8yrs
  • Karen Witts (56yo)

    CFO & Director

    • Tenure: 0.3yrs
  • Michael Young

    Director of Corporate Policy and Communications

    • Tenure: 13.2yrs
  • Dev Amritesh (44yo)

    Managing Director

    • Tenure: 2.0yrs
  • Sandra Moura

    Head of Investor Relations & Corporate Affairs

    • Tenure: 4.8yrs
  • Robin Mills

    Group HR Director

    • Tenure: 0.0yrs
  • Keith Francis

    Strategic Sales Director

    • Tenure: 4.8yrs
  • Dominic Blakemore (50yo)

    Group Chief Executive & Director

    • Tenure: 1.6yrs
    • Compensation: UK£4.57m
  • Palmer Brown

    Chief Corporate Investment & Risk Officer of Compass Group North America

    • Tenure: 0.0yrs

Board Members

  • Paul Walsh (64yo)

    Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: UK£541.00k
  • John Bason (61yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£119.00k
  • Gary Green (62yo)

    Group COO of North America & Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£5.32m
  • Karen Witts (56yo)

    CFO & Director

    • Tenure: 0.3yrs
  • Nelson Luiz Silva (64yo)

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£104.00k
  • Stefan Bomhard (51yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£84.00k
  • Dominic Blakemore (50yo)

    Group Chief Executive & Director

    • Tenure: 1.6yrs
    • Compensation: UK£4.57m
  • Ireena Vittal (51yo)

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£84.00k
  • Carol Arrowsmith (65yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£114.00k
  • Anne-Francoise Nesmes (48yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • 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£32.508b
  • 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

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
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 Analysis2019/08/19 20:40
End of Day Share Price2019/08/19 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.