LSE:SSPG

Stock Analysis Report

Executive Summary

SSP Group plc operates food and beverage outlets.

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

1.1%

LSE:SSPG

4.1%

GB Hospitality

1.4%

GB Market


1 Year Return

-2.2%

LSE:SSPG

9.1%

GB Hospitality

-5.7%

GB Market

SSPG underperformed the Hospitality industry which returned 9.1% over the past year.

SSPG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

SSPGIndustryMarket
7 Day1.1%4.1%1.4%
30 Day2.3%1.6%-4.8%
90 Day3.2%11.1%-1.9%
1 Year4.4%-2.2%13.2%9.1%-1.3%-5.7%
3 Year124.5%97.0%26.3%13.1%17.6%3.6%
5 Year211.9%167.6%63.5%37.8%24.6%-2.0%

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 based on future cash flows and its price relative to the stock market?

26.89x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SSP Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SSP Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SSP Group is overvalued based on earnings compared to the GB Hospitality industry average.

SSP Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

SSP Group is poor value based on expected growth next year.


Price Based on Value of Assets

SSP Group is overvalued based on assets compared to the GB Hospitality industry average.


Next Steps

Future Growth

How is SSP Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SSP Group's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

SSP Group's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

SSP Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

SSP Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

SSP Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

SSP Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has SSP Group performed over the past 5 years?

45.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SSP Group has delivered over 20% year on year earnings growth in the past 5 years.

SSP Group's 1-year earnings growth is less than its 5-year average (17.2% vs 45.4%)

SSP Group's earnings growth has exceeded the GB Hospitality industry average in the past year (17.2% vs 3.5%).


Return on Equity

Whilst SSP Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

SSP Group used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

SSP Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SSP Group's financial position?


Financial Position Analysis

SSP Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

SSP Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SSP Group's level of debt (130.6%) compared to net worth is high (greater than 40%).

SSP Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (40.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.5x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.79%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SSP Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.06%).

SSP Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.62%).

Whilst dividend payments have been stable, SSP Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but SSP Group only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Simon Smith (47yo)

0.2yrs

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

5.2yrs

Average Tenure

56yo

Average Age

The average tenure for the SSP Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.6yrs

Average Tenure

57yo

Average Age

The tenure for the SSP Group board of directors is about average.


Insider Trading

SSP Group individual insiders have only sold shares 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


Management Team

  • Jonathan Davies (57yo)

    CFO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£2.17m
  • Sarah John

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Mark Angela (55yo)

    Chief Executive Officer of SSP Asia Pacific

    • Tenure: 5.3yrs
  • Chris Rayner (54yo)

    Chief Executive Officer of SSP South America

    • Tenure: 5.6yrs
  • Nick Inkster (63yo)

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

    • Tenure: 0.0yrs
  • Michael Svagdis

    Chief Executive Officer of SSP America

    • Tenure: 5.1yrs
  • Helen Byrne (63yo)

    General Counsel & Company Secretary

    • Tenure: 12.4yrs
  • Simon Smith (47yo)

    CEO & Director

    • Tenure: 0.2yrs
  • Rachel Howarth

    HR Director & MD of Netherlands

    • Tenure: 3.8yrs
  • Jonathan Sharp

    Chief Commercial & Strategy Officer

    • Tenure: 1.6yrs

Board Members

  • Ian Dyson (57yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£59.00k
  • Jonathan Davies (57yo)

    CFO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£2.17m
  • Vagn Sørensen (60yo)

    Chairman

    • Tenure: 13.2yrs
    • Compensation: UK£187.00k
  • Per Utnegaard (60yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£49.00k
  • Carolyn Bradley

    Senior Independent Director

    • Tenure: 0.5yrs
  • Simon Smith (47yo)

    CEO & Director

    • Tenure: 0.2yrs

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£3.124b
  • Shares outstanding: 441.89m
  • 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 Analysis2019/08/23 22:15
End of Day Share Price2019/08/23 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.