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Compass Group

LSE:CPG
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CPG
LSE
£31B
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

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 65 days ago. More info.


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CPG Share Price and Events
7 Day Returns
1.5%
LSE:CPG
1.8%
GB Hospitality
0.1%
GB Market
1 Year Returns
18.7%
LSE:CPG
-2.2%
GB Hospitality
-2.2%
GB Market
CPG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Compass Group (CPG) 1.5% 3.3% 14.1% 18.7% 29% 85.8%
GB Hospitality 1.8% -0.5% 3.2% -2.2% 11.3% 41.2%
GB Market 0.1% 0.6% -0% -2.2% 11.2% 6.1%
1 Year Return vs Industry and Market
  • CPG outperformed the Hospitality industry which returned -2.2% over the past year.
  • CPG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.
Price Volatility
CPG
Industry
5yr Volatility vs Market
Related Companies

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Compass Group.

LSE:CPG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
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.

Calculation of Discount Rate/ Cost of Equity for LSE:CPG
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 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.922 (1 + (1- 19%) (13.74%))
1.017
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.017 * 6.65%)
7.99%

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.

LSE:CPG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.99%)
2020 1,220.79 Analyst x12 1,130.49
2021 1,303.73 Analyst x10 1,117.99
2022 1,357.50 Analyst x2 1,078.00
2023 1,448.50 Analyst x2 1,065.18
2024 1,509.94 Est @ 4.24% 1,028.23
2025 1,560.33 Est @ 3.34% 983.94
2026 1,602.52 Est @ 2.7% 935.80
2027 1,638.75 Est @ 2.26% 886.18
2028 1,670.72 Est @ 1.95% 836.64
2029 1,699.68 Est @ 1.73% 788.18
Present value of next 10 years cash flows £9,850.63
LSE:CPG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £1,699.68 × (1 + 1.23%) ÷ (7.99% – 1.23%)
£25,449.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £25,449.29 ÷ (1 + 7.99%)10
£11,801.43
LSE:CPG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £9,850.63 + £11,801.43
£21,652.06
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £21,652.06 / 1,586.36
£13.65
LSE:CPG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £13.65
Current discount Discount to share price of £19.62
= -1 x (£19.62 - £13.65) / £13.65
-43.7%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
LSE:CPG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.74
LSE:CPG Share Price ** LSE (2019-07-19) in GBP £19.62
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 19.96x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 791 Publicly-Listed Companies 16.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Compass Group.

LSE:CPG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CPG Share Price ÷ EPS (both in GBP)

= 19.62 ÷ 0.74

26.56x

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?
Raw Data
LSE:CPG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
6.9%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.27x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:CPG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.56x ÷ 6.9%

3.85x

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?
Raw Data
LSE:CPG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £1.78
LSE:CPG Share Price * LSE (2019-07-19) in GBP £19.62
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 55 Publicly-Listed Hospitality Companies 1.32x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
LSE:CPG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CPG Share Price ÷ Book Value per Share (both in GBP)

= 19.62 ÷ 1.78

11.03x

* 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.
X
Value checks
We assess Compass Group's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. 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

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

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!
Annual Growth Rate
6.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Compass Group expected to grow at an attractive rate?
  • 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
Raw Data
LSE:CPG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:CPG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 6.9%
LSE:CPG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 5.1%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
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 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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
Raw Data
LSE:CPG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CPG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 30,134 1,683 3
2022-09-30 28,821 1,580 4
2021-09-30 27,412 2,240 1,464 17
2020-09-30 26,044 2,096 1,378 19
2019-09-30 24,691 1,906 1,283 17
LSE:CPG Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Compass Group's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
  • Compass Group's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CPG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Compass Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CPG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 1.06 1.06 1.06 1.00
2022-09-30 0.99 0.99 0.99 1.00
2021-09-30 0.93 0.98 0.88 8.00
2020-09-30 0.88 0.91 0.85 10.00
2019-09-30 0.81 0.83 0.78 8.00
LSE:CPG Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Compass Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Compass Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. 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)
  3. 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)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Compass Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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%).
Earnings and Revenue History
Compass Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Compass Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CPG Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Compass Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Compass Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Compass Group Company Filings, last reported 3 months ago.

LSE:CPG Past Debt and Equity Data
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 4,463.00 1,003.00
2018-06-30 2,640.00 4,463.00 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 3,966.00 391.00
2017-06-30 2,120.00 3,966.00 391.00
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 3,392.00 348.00
2016-06-30 2,520.00 3,392.00 348.00
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 2,950.00 302.00
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 2,828.00 424.00
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 2,248.00 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 1,762.00 730.00
  • 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).
X
Financial health checks
We assess Compass Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Compass Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.92%
Current annual income from Compass Group dividends. Estimated to be 2.24% next year.
If you bought £2,000 of Compass Group shares you are expected to receive £38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Compass Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Compass Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.45%).
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.
Raw Data
LSE:CPG Annualized Past and Future Dividends
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 19 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 30 Stocks 3.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
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 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CPG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.52 2.00
2022-09-30 0.49 2.00
2021-09-30 0.47 18.00
2020-09-30 0.43 21.00
2019-09-30 0.41 19.00
LSE:CPG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-12-17 0.377 2.150
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
2009-05-13 0.137 3.483
2008-12-01 0.133 3.723

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Compass Group's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess Compass Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Compass Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dominic Blakemore
COMPENSATION £4,568,000
AGE 50
TENURE AS CEO 1.5 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. He served as Europe Finance and Strategy Director at Cadbury Plc from 2008 to 2010, Corporate Finance Director from 2006 to 2008 and also served as its Group Financial Controller from 2004 to 2006. Prior to joining Compass, he was Chief Financial Officer of Birds Eye Iglo Group from 2010 to 2011. 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 a qualified accountant, having trained at PricewaterhouseCoopers LLP where he advised pharmaceutical sector clients and held Various Positions from 1993 to 2004. He was Translator and Interpreter at UNIFE (Union des Industries Ferroviaires Européennes), Paris from 1991 to 1993. He is Member of the Academic Council at University College London from 2015. He graduated in B.A. (Hons) in French with Latin from University College, London from 1989 to 1991. He is fellow of Institute of Chartered Accountants in England and Wales ACA in 1996.

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:

3.3
Average Tenure
53
Average Age
  • The tenure for the Compass Group management team is about average.
Management Team

Dominic Blakemore

TITLE
Group Chief Executive & Director
COMPENSATION
£5M
AGE
50
TENURE
1.5 yrs

Gary Green

TITLE
Group COO of North America & Executive Director
COMPENSATION
£5M
AGE
62
TENURE
7.3 yrs

Dev Amritesh

TITLE
Managing Director
AGE
44
TENURE
1.9 yrs

Karen Witts

TITLE
CFO & Director
AGE
56
TENURE
0.3 yrs

Palmer Brown

TITLE
Chief Corporate Investment & Risk Officer of Compass Group North America

Sandra Moura

TITLE
Head of Investor Relations & Corporate Affairs
TENURE
4.8 yrs

Alison Yapp

TITLE
Group General Counsel & Company Secretary
AGE
53
TENURE
0.8 yrs

Michael Young

TITLE
Director of Corporate Policy and Communications
TENURE
13.1 yrs

Keith Francis

TITLE
Strategic Sales Director
TENURE
4.8 yrs

Robin Mills

TITLE
Group HR Director
Board of Directors Tenure

Average tenure and age of the Compass Group board of directors in years:

4
Average Tenure
58.5
Average Age
  • The tenure for the Compass Group board of directors is about average.
Board of Directors

Paul Walsh

TITLE
Non-Executive Chairman
COMPENSATION
£541K
AGE
64
TENURE
5.4 yrs

Dominic Blakemore

TITLE
Group Chief Executive & Director
COMPENSATION
£5M
AGE
50
TENURE
7.4 yrs

Gary Green

TITLE
Group COO of North America & Executive Director
COMPENSATION
£5M
AGE
62
TENURE
12.3 yrs

Karen Witts

TITLE
CFO & Director
AGE
56
TENURE
0.3 yrs

John Bason

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£119K
AGE
61
TENURE
1.1 yrs

Carol Arrowsmith

TITLE
Non-Executive Director
COMPENSATION
£114K
AGE
65
TENURE
5.1 yrs

Nelson Luiz Silva

TITLE
Non-Executive Director
COMPENSATION
£104K
AGE
64
TENURE
4 yrs

Ireena Vittal

TITLE
Non-Executive Director
COMPENSATION
£84K
AGE
51
TENURE
4 yrs

Stefan Bomhard

TITLE
Non-Executive Director
COMPENSATION
£84K
AGE
51
TENURE
3.2 yrs

Anne-Francoise Nesmes

TITLE
Non-Executive Director
COMPENSATION
£21K
AGE
48
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Compass Group individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
28. Jun 19 Buy Anne-Francoise Nesmes Individual 27. Jun 19 27. Jun 19 2,122 £18.74 £39,746
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
X
Management checks
We assess Compass Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Introducing Compass Group (LON:CPG), A Stock That Climbed 83% In The Last Five Years

For example, long term Compass Group PLC (LON:CPG) shareholders have enjoyed a 83% share price rise over the last half decade, well in excess of the market return of around 7.5% (not including dividends). … As well as measuring the share price return, investors should also consider the total shareholder return (TSR). … As it happens, Compass Group's TSR for the last 5 years was 114%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Compass Group PLC (LON:CPG)

Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Compass Group has grown its earnings per share at 23% per annum over the past five years. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Should We Worry About Compass Group PLC's (LON:CPG) P/E Ratio?

Compass Group has a price to earnings ratio of 24.3, based on the last twelve months. … See our latest analysis for Compass Group How Do I Calculate Compass Group's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Compass Group: P/E of 24.3 = £17.95 ÷ £0.74 (Based on the year to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

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 -

Compass 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 -

Who 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 -

What 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 -

Compass 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 -

Did 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 -

How 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 -

Company 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
£31,116,380,648
1,586,356,393
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
Staff numbers
600,000
Compass Group employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 20:38
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/12
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.