LSE:SSPG

Stock Analysis Report

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Executive Summary

SSP Group plc operates food and beverage outlets. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


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

-3.0%

SSPG

-3.4%

GB Hospitality

-1.9%

GB Market


1 Year Return

-71.5%

SSPG

-35.9%

GB Hospitality

-16.2%

GB Market

Return vs Industry: SSPG underperformed the UK Hospitality industry which returned -33.3% over the past year.

Return vs Market: SSPG underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

SSPGIndustryMarket
7 Day-3.0%-3.4%-1.9%
30 Day-0.1%3.4%0.7%
90 Day-24.4%7.8%-4.8%
1 Year-71.2%-71.5%-34.1%-35.9%-13.0%-16.2%
3 Year-67.1%-70.9%-22.2%-29.3%-9.4%-20.6%
5 Year-35.2%-44.5%-3.5%-20.3%13.5%-12.0%

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

Valuation

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

13.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SSPG (£1.81) is trading above our estimate of fair value (£1.59)

Significantly Below Fair Value: SSPG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SSPG is good value based on its PE Ratio (13.2x) compared to the GB Hospitality industry average (18.8x).

PE vs Market: SSPG is good value based on its PE Ratio (13.2x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SSPG is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SSPG is overvalued based on its PB Ratio (2.1x) compared to the GB Hospitality industry average (1.1x).


Next Steps

Future Growth

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

78.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSPG's forecast earnings growth (78.5% per year) is above the savings rate (1.2%).

Earnings vs Market: SSPG's earnings (78.5% per year) are forecast to grow faster than the UK market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SSPG's revenue (14.7% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: SSPG's revenue (14.7% 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 low in 3 years time (0.1%).


Next Steps

Past Performance

How has SSP Group performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSPG has high quality earnings.

Growing Profit Margin: SSPG's current net profit margins (2.3%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: SSPG has become profitable over the past 5 years, growing earnings by 21.4% per year.

Accelerating Growth: SSPG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SSPG had negative earnings growth (-47.4%) over the past year, making it difficult to compare to the Hospitality industry average (-12.3%).


Return on Equity

High ROE: SSPG's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is SSP Group's financial position?


Financial Position Analysis

Short Term Liabilities: SSPG's short term assets (£604.4M) do not cover its short term liabilities (£993.8M).

Long Term Liabilities: SSPG's short term assets (£604.4M) do not cover its long term liabilities (£1.9B).


Debt to Equity History and Analysis

Debt Level: SSPG's debt to equity ratio (160.7%) is considered high.

Reducing Debt: SSPG's debt to equity ratio has reduced from 191.7% to 160.7% over the past 5 years.

Debt Coverage: SSPG's debt is well covered by operating cash flow (45.2%).

Interest Coverage: SSPG's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.06%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SSPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SSPG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SSPG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SSPG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SSPG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SSPG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Simon Smith (48 yo)

1.33yrs

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 ($USD1.76M) is about average for companies of similar size in the UK market ($USD1.76M).

Compensation vs Earnings: Insufficient data to compare Simon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Smith
CEO & Director1.33yrsUK£1.34m0.17%
£ 1.6m
Jonathan Davies
CFO & Executive Director6.33yrsUK£2.01m0.24%
£ 2.3m
Sarah John
Director of Investor Relations & Corporate Affairsno datano datano data
Helen Byrne
General Counsel & Company Secretary13.58yrsno datano data
Rachel Howarth
HR Director & MD of Netherlands4.92yrsno datano data
Oliver Doerschuck
Chief Executive Officer of Continental Europe1.75yrsno datano data
Jonathan Sharp
Chief Commercial & Strategy Officer2.75yrsno datano data
Mark Angela
Chief Executive Officer of SSP Asia Pacific8.67yrsno data0.18%
£ 1.8m
Michael Svagdis
Chief Executive Officer of SSP America6.25yrsno data0.018%
£ 178.5k
Richard Lewis
Chief Executive Officer of SSP UK 1.08yrsno datano data
Jeremy Fennell
CEO of SSP Nordics1.75yrsno datano data

3.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SSPG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Smith
CEO & Director1.33yrsUK£1.34m0.17%
£ 1.6m
Jonathan Davies
CFO & Executive Director6.33yrsUK£2.01m0.24%
£ 2.3m
Ian Dyson
Independent Non-Executive Director6.5yrsUK£61.00k0.0063%
£ 61.3k
Judy Vezmar
Independent Non-Executive Director0.17yrno datano data
Michael Clasper
Independent Chairman of the Board0.67yrno data0.0075%
£ 72.6k
Per Utnegaard
Independent Non-Executive Director5.25yrsUK£50.00k0.0027%
£ 26.6k
Timothy Lodge
Independent Non-Executive Directorno datano datano data
Carolyn Bradley
Senior Independent Director1.67yrsUK£63.00k0.0011%
£ 10.4k

1.9yrs

Average Tenure

58yo

Average Age

Experienced Board: SSPG's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 20.8%.


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£974.395m
  • Shares outstanding: 537.15m
  • 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
SSPGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 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 Analysis2020/10/21 20:31
End of Day Share Price2020/10/21 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.