SSP Group
Market Cap
UK£1.6b
Last Updated
2020/03/29 23:16 UTC
Data Sources
Company Financials +
Executive Summary
SSP Group plc operates food and beverage outlets.
Rewards
Risk Analysis
Snowflake Analysis
Good value with moderate growth potential.
Similar Companies
Share Price & News
How has SSP Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SSPG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
32.9%
SSPG
11.1%
GB Hospitality
6.2%
GB Market
1 Year Return
-58.9%
SSPG
-26.1%
GB Hospitality
-22.7%
GB Market
Return vs Industry: SSPG underperformed the UK Hospitality industry which returned -26.1% over the past year.
Return vs Market: SSPG underperformed the UK Market which returned -22.7% over the past year.
Shareholder returns
| SSPG | Industry | Market | |
|---|---|---|---|
| 7 Day | 32.9% | 11.1% | 6.2% |
| 30 Day | -41.0% | -26.8% | -17.8% |
| 90 Day | -54.4% | -34.7% | -27.7% |
| 1 Year | -56.0%-58.9% | -24.0%-26.1% | -18.6%-22.7% |
| 3 Year | -24.5%-33.9% | -16.1%-24.6% | -13.4%-24.6% |
| 5 Year | 6.9%-9.1% | -3.5%-18.7% | 1.3%-22.0% |
Price Volatility Vs. Market
How volatile is SSP 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
How Does SSP Group's (LON:SSPG) P/E Compare To Its Industry, After The Share Price Drop?2 weeks ago | Simply Wall St
An Intrinsic Calculation For SSP Group plc (LON:SSPG) Suggests It's 36% Undervalued4 weeks ago | Simply Wall St
SSP Group plc (LON:SSPG) Looks Interesting, And It's About To Pay A DividendValuation
Is SSP Group undervalued compared to its fair value and its price relative to the market?
36.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SSPG (£2.99) is trading below our estimate of fair value (£4.71)
Significantly Below Fair Value: SSPG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SSPG is good value based on its PE Ratio (10.7x) compared to the Hospitality industry average (17.2x).
PE vs Market: SSPG is good value based on its PE Ratio (10.7x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: SSPG is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: SSPG is overvalued based on its PB Ratio (4.1x) compared to the GB Hospitality industry average (1x).
Next Steps
Future Growth
How is SSP Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SSPG's forecast earnings growth (9.6% per year) is above the savings rate (0.5%).
Earnings vs Market: SSPG's earnings (9.6% per year) are forecast to grow slower than the UK market (15.4% per year).
High Growth Earnings: SSPG's earnings are forecast to grow, but not significantly.
Revenue vs Market: SSPG's revenue (4.7% per year) is forecast to grow faster than the UK market (2.6% per year).
High Growth Revenue: SSPG's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SSPG's Return on Equity is forecast to be high in 3 years time (35.8%)
Next Steps
Past Performance
How has SSP Group performed over the past 5 years?
37.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SSPG has high quality earnings.
Growing Profit Margin: SSPG's current net profit margins (4.5%) are lower than last year (4.6%).
Past Earnings Growth Analysis
Earnings Trend: SSPG has become profitable over the past 5 years, growing earnings by 37.1% per year.
Accelerating Growth: SSPG's earnings growth over the past year (8.3%) is below its 5-year average (37.1% per year).
Earnings vs Industry: SSPG earnings growth over the past year (8.3%) exceeded the Hospitality industry -3.5%.
Return on Equity
High ROE: Whilst SSPG's Return on Equity (36.93%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is SSP Group's financial position?
Financial Position Analysis
Short Term Liabilities: SSPG's short term assets (£478.2M) do not cover its short term liabilities (£716.2M).
Long Term Liabilities: SSPG's short term assets (£478.2M) do not cover its long term liabilities (£659.8M).
Debt to Equity History and Analysis
Debt Level: SSPG's debt to equity ratio (173.3%) is considered high.
Reducing Debt: SSPG's debt to equity ratio has reduced from 200.7% to 173.3% over the past 5 years.
Debt Coverage: SSPG's debt is well covered by operating cash flow (41.8%).
Interest Coverage: SSPG's interest payments on its debt are well covered by EBIT (13.9x coverage).
Balance Sheet
Inventory Level: SSPG has a high level of physical assets or inventory.
Debt Coverage by Assets: SSPG's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is SSP Group's current dividend yield, its reliability and sustainability?
4.01%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SSPG's dividend (4.01%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).
High Dividend: SSPG's dividend (4.01%) is low compared to the top 25% of dividend payers in the UK market (7.3%).
Stability and Growth of Payments
Stable Dividend: SSPG has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SSPG's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.1%), SSPG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SSPG's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Simon Smith (47yo)
0.75
Tenure
UK£1,336,000
Compensation
Mr. Simon Smith has been the Chief Executive Officer at SSP Group Plc since June 1, 2019 and has been its Director since November 20, 2018. Mr. Smith was the Chief Executive Officer of SSP UK and Ireland a ...
CEO Compensation Analysis
Compensation vs Market: Simon's total compensation ($USD1.66M) is about average for companies of similar size in the UK market ($USD1.93M).
Compensation vs Earnings: Insufficient data to compare Simon's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.75yr | UK£1.34m | 0.16% £2.5m | |
| CFO & Executive Director | 5.75yrs | UK£2.01m | 0.29% £4.7m | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | 13yrs | no data | no data | |
| HR Director & MD of Netherlands | 4.33yrs | no data | no data | |
| Chief Executive Officer of Continental Europe | 1.17yrs | no data | no data | |
| Chief Commercial & Strategy Officer | 2.17yrs | no data | no data | |
| Chief Executive Officer of SSP Asia Pacific | 8.08yrs | no data | 0.17% £2.8m | |
| Chief Executive Officer of SSP America | 5.67yrs | no data | 0.018% £294.2k | |
| Chief Executive Officer of SSP UK | 0.50yr | no data | no data |
4.3yrs
Average Tenure
51.5yo
Average Age
Experienced Management: SSPG's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.75yr | UK£1.34m | 0.16% £2.5m | |
| CFO & Executive Director | 5.75yrs | UK£2.01m | 0.29% £4.7m | |
| Independent Non-Executive Director | 5.92yrs | UK£61.00k | 0.0033% £52.2k | |
| Chairman of the Board | 0.083yr | no data | no data | |
| Independent Non-Executive Director | 4.67yrs | UK£50.00k | 0.0012% £19.6k | |
| Senior Independent Director | 1yr | UK£63.00k | 0.0011% £16.9k |
3.0yrs
Average Tenure
57yo
Average Age
Experienced Board: SSPG's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
SSP Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: SSP Group plc
- Ticker: SSPG
- Exchange: LSE
- Founded: 2006
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: UK£1.596b
- Shares outstanding: 533.86m
- Website: https://www.foodtravelexperts.com
Number of Employees
Location
- SSP Group plc
- 169 Euston Road
- London
- Greater London
- NW1 2AE
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SSPG | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jul 2014 |
| 83S2 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 2014 |
| SSPP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 2014 |
Biography
SSP Group plc operates food and beverage outlets. The company operates outlets at airports, railway stations, motorway service areas, hospitals, and sports stadia and shopping areas. It operates approximately 550 brands in approximately 35 countries in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. The company was incorporated in 2006 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/29 23:16 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.