LSE:SSPG

Stock Analysis Report

Executive Summary

SSP Group plc operates food and beverage outlets.


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

SSPGIndustryMarket
7 Day32.9%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 Year6.9%-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

Valuation

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

NamePositionTenureCompensationOwnership
Simon Smith
CEO & Director0.75yrUK£1.34m0.16% £2.5m
Jonathan Davies
CFO & Executive Director5.75yrsUK£2.01m0.29% £4.7m
Sarah John
Director of Investor Relationsno datano datano data
Helen Byrne
General Counsel & Company Secretary13yrsno datano data
Rachel Howarth
HR Director & MD of Netherlands4.33yrsno datano data
Oliver Doerschuck
Chief Executive Officer of Continental Europe1.17yrsno datano data
Jonathan Sharp
Chief Commercial & Strategy Officer2.17yrsno datano data
Mark Angela
Chief Executive Officer of SSP Asia Pacific8.08yrsno data0.17% £2.8m
Michael Svagdis
Chief Executive Officer of SSP America5.67yrsno data0.018% £294.2k
Richard Lewis
Chief Executive Officer of SSP UK 0.50yrno datano 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

NamePositionTenureCompensationOwnership
Simon Smith
CEO & Director0.75yrUK£1.34m0.16% £2.5m
Jonathan Davies
CFO & Executive Director5.75yrsUK£2.01m0.29% £4.7m
Ian Dyson
Independent Non-Executive Director5.92yrsUK£61.00k0.0033% £52.2k
Michael Clasper
Chairman of the Board0.083yrno datano data
Per Utnegaard
Independent Non-Executive Director4.67yrsUK£50.00k0.0012% £19.6k
Carolyn Bradley
Senior Independent Director1yrUK£63.00k0.0011% £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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:16
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
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.