LSE:SSPG

Stock Analysis Report

Executive Summary

SSP Group plc operates food and beverage outlets.

Snowflake

Fundamentals

Proven track record with reasonable growth potential and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

SSPG

0.8%

GB Hospitality

-1.5%

GB Market


1 Year Return

-11.4%

SSPG

18.7%

GB Hospitality

3.5%

GB Market

Return vs Industry: SSPG underperformed the UK Hospitality industry which returned 18.7% over the past year.

Return vs Market: SSPG underperformed the UK Market which returned 3.5% over the past year.


Shareholder returns

SSPGIndustryMarket
7 Day0.8%0.8%-1.5%
30 Day-0.5%1.7%1.0%
90 Day-7.0%5.2%4.3%
1 Year-5.3%-11.4%22.9%18.7%9.0%3.5%
3 Year105.4%80.3%38.9%24.4%21.8%6.4%
5 Year179.3%139.6%63.8%37.9%33.8%3.5%

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

Valuation

Is SSP Group undervalued compared to its fair value and its price relative to the market?

2.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSPG (£6.5) is trading below our estimate of fair value (£6.63)

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


Price To Earnings Ratio

PE vs Industry: SSPG is good value based on its PE Ratio (24.7x) compared to the Hospitality industry average (24.9x).

PE vs Market: SSPG is poor value based on its PE Ratio (24.7x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: SSPG is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SSPG is overvalued based on its PB Ratio (7.7x) compared to the GB Hospitality industry average (1.5x).


Next Steps

Future Growth

How is SSP Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSPG's forecast earnings growth (13.5% per year) is above the savings rate (1.2%).

Earnings vs Market: SSPG's earnings (13.5% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: SSPG's revenue (5.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: SSPG's revenue (5.1% 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 (37.3%)


Next Steps

Past Performance

How has SSP Group performed over the past 5 years?

45.4%

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 higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: SSPG's earnings have grown significantly by 45.4% per year over the past 5 years.

Accelerating Growth: SSPG's earnings growth over the past year (17.2%) is below its 5-year average (45.4% per year).

Earnings vs Industry: SSPG earnings growth over the past year (17.2%) exceeded the Hospitality industry 4.7%.


Return on Equity

High ROE: Whilst SSPG's Return on Equity (31.26%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SSP Group's financial position?


Financial Position Analysis

Short Term Liabilities: SSPG's short term assets (£388.3M) do not cover its short term liabilities (£600.2M)

Long Term Liabilities: SSPG's short term assets (388.3M) do not cover its long term liabilities (566.8M)


Debt to Equity History and Analysis

Debt Level: SSPG's debt to equity ratio (130.6%) is considered high

Reducing Debt: SSPG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SSPG's debt is well covered by operating cash flow (40.5%).

Interest Coverage: SSPG's interest payments on its debt are well covered by EBIT (19.5x 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 0.6x debt).


Next Steps

Dividend

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

6.83%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.0%markettop25%5.3%industryaverage2.7%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: SSPG's dividend (6.83%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: SSPG's dividend (6.83%) is in the top 25% of dividend payers in the UK market (5.33%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SSPG has been paying a dividend for less than 10 years.

Growing Dividend: SSPG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), 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 (40.1% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Simon Smith (47yo)

0.4yrs

Tenure

0

Mr. Simon Smith has been the Chief Executive Officer at SSP Group Plc since June 1, 2019 and has been its Director since November 21, 2018. Mr. Smith was the Chief Executive Officer of SSP UK and Ireland a ...


Management Age and Tenure

4.7yrs

Average Tenure

56yo

Average Age

Experienced Management: SSPG's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SSPG's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£1,671,06819 Jul 19
Nick Inkster
EntityIndividual
Role
Unit CEO
CEO of SSP Nordics & Spain and Group Director of Strategic Client Partnerships
Shares242,581
Max PriceUK£6.89
SellUK£1,146,16229 Jan 19
Nick Inkster
EntityIndividual
Role
Unit CEO
CEO of SSP Nordics & Spain and Group Director of Strategic Client Partnerships
Shares162,857.14
Max PriceUK£7.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Jonathan Davies (57yo)

    CFO & Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£2.17m
  • Sarah John

    Director of Investor Relations

    • Tenure: 0yrs
  • Mark Angela (55yo)

    Chief Executive Officer of SSP Asia Pacific

    • Tenure: 7.8yrs
  • Nick Inkster (63yo)

    CEO of SSP Nordics & Spain and Group Director of Strategic Client Partnerships

    • Tenure: 0yrs
  • Michael Svagdis

    Chief Executive Officer of SSP America

    • Tenure: 5.3yrs
  • Helen Byrne (63yo)

    General Counsel & Company Secretary

    • Tenure: 12.7yrs
  • Simon Smith (47yo)

    CEO & Director

    • Tenure: 0.4yrs
  • Rachel Howarth

    HR Director & MD of Netherlands

    • Tenure: 4yrs
  • Oliver Doerschuck (45yo)

    Chief Executive Officer of DACH FRABEL & Spain

    • Tenure: 2.3yrs
  • Jonathan Sharp

    Chief Commercial & Strategy Officer

    • Tenure: 1.8yrs

Board Members

  • Ian Dyson (57yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: UK£59.00k
  • Mike Clasper (66yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Jonathan Davies (57yo)

    CFO & Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£2.17m
  • Vagn Sørensen (60yo)

    Chairman

    • Tenure: 13.4yrs
    • Compensation: UK£187.00k
  • Per Utnegaard (60yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£49.00k
  • Carolyn Bradley

    Senior Independent Director

    • Tenure: 0.8yrs
  • Simon Smith (47yo)

    CEO & Director

    • Tenure: 0.4yrs

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£2.890b
  • Shares outstanding: 444.55m
  • Website: https://www.foodtravelexperts.com

Number of Employees


Location

  • SSP Group plc
  • 169 Euston Road
  • London
  • Greater London
  • NW1 2AE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSPGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2014
83S2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
SSPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 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 approximat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 22:10
End of Day Share Price2019/11/14 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.