STOCK REVIEW
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Compass Group PLC's (L:CPG) stock price lifted GBX26.50 (1.3%) from its previous trading session to close at GBX2,008.0.
Compared with the FTSE 100 Index which rose 30.6 points (0.4%) in the day, the relative price increase was 1.2%.
Compass Group PLC is the largest Travel & leisure company by market cap in the United Kingdom. It posted the highest rise in MCap GBP473.1 million ($577 million) with the most influence on the Travel & leisure sector. Its MCap is GBP35.9 billion ($43.7 billion).
There were 2,250,000 shares worth GBP45.2 million ($55.1 million) traded today. The volume was 0.7 times the average daily trading volume of 3 million shares.
COMPASS GROUP Stock Dashboard (traded in British Pound, GBP) End-of-Day
| Exchange | UNITED KINGDOM [CHI-X (UK),London] | 52-Week Price Range | 1,542.56 - 2,009.00 |
| Currency | 1.000 GBP = 1.22 USD | Sector | Travel & Leisure |
| Mar 22, 2023 | GBX2,008.0 | Independent Rating | Ranked 848 in Forbes 2000 |
| EPS (FY2022) | 0.63 GBX | Market Cap | GBP36 billion [US$44 billion] |
| CPG Dividend Yield % (TTM) | Stock 1.6; Sector 0.6 | Shares Outstanding | 1,785,403,977 |
| DPS (past 12 months) | GBX23 | CPG in Indices | FTSE 100 |
| EPS Growth (FY2022 vs FY2021) | 213% | PVGBX1000 (1 yr) PVUS$1000 (1 yr) | GBX1,222 US$1,129* |
| Ave Daily Volume | 3,001,992 shares |
Reported buyback transactions [TTM]
| Period | No. of shares | Weighted Average price, GBX | Value, GBX |
| Mar 23 | 2,932,524 | 18.98 | 55,656,527 |
| Feb 23 | 3,448,616 | 18.84 | 64,973,783 |
| Jan 23 | 5,242,042 | 19.1 | 100,103,114 |
| Dec 22 | 5,435,521 | 19 | 103,272,359 |
| Nov 22 | 1,320,665 | 18.39 | 24,289,612 |
| Oct 22 | 2,105,068 | 18 | 37,887,622 |
| Sep 22 | 4,222,718 | 18.68 | 78,880,542 |
| Aug 22 | 3,102,241 | 19.18 | 59,489,151 |
| Jul 22 | 3,594,389 | 18.23 | 65,541,440 |
| Jun 22 | 6,713,503 | 17.06 | 114,529,751 |
| May 22 | 721,371 | 17.94 | 12,941,011 |
| Total | 38,838,658 |
Net reported buyback transactions on : since May 2022: Bought 38,838,658 shares at an average price of GBX18 worth GBX717,564,912.0.
Insider Selling
Wednesday March 22
Compass Group (L:CPG) Non-Executive Independent Director Carol Arrowsmith sold 650 shares worth GBP12,666 ($15,524) on March 20. The selling price was GBP19.49. The shares hit a one-month high on the day.
Wednesday March 22
Compass Group (L:CPG) Non-Executive Independent Director Carol Arrowsmith sold 1,027 shares worth GBP20,011 ($24,526) on March 20. The selling price was GBP19.48. The shares hit a one-month high on the day.
Insider Buying
Wednesday March 22
Compass Group (L:CPG) Non-Executive Independent Director Carol Arrowsmith bought 1,018 shares worth GBP19,841 ($24,317) on March 20. The purchase price was GBP19.49. The shares hit a one-month high on the day.
Tuesday March 07
Compass Group (L:CPG) Non-Executive Independent Director Carol Arrowsmith bought 148 shares worth GBP2,855 ($3,437) on March 02. The purchase price was GBP19.29. The shares hit a nine-day low on the day.
Please view more stories in DATA DOWNLOAD CENTER
BUYBACK OF SHARES
Compass Group announced a buyback of 104,931 shares worth GBP1,982,314 (or $2,385,065) on March 16. The buyback price was GBP18.89.
DATA & ARCHIVE DOWNLOAD CENTER
CPG: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:
+ PRICE VOLUME - 5-YEAR HISTORY
+ FINANCIALS - 10-YEAR HISTORY [INCLUDING FY 2022]:
+ PEER COMPARISON - STOCK IN TRAVEL & LEISURE SECTOR AND STOCK IN INDICES
CPG: LINKS IN HTML TO FURTHER INFORMATION:
+ NEWS ARCHIVES - CPG PAST 4 YEARS IN HTML:
INDEX
SECTION 1 THE PAST QUARTER: ESG
SECTION 2 THE PAST QUARTER: PRESS RELEASES AND CORPORATE WIRE
SECTION 3 TODAY'S BULLISH SIGNALS
SECTION 4 ONGOING BULLISH PARAMETERS
SECTION 5 TODAY'S BEARISH SIGNALS
SECTION 6 ONGOING BEARISH PARAMETERS
SECTION 7 CORPORATE PROFILE
SECTION 8 FINANCIALS FY 2022
SECTION 9 DIVIDEND
SECTION 10 TOP MANAGEMENT AND BOARD OF DIRECTORS
SECTION 11 INSIDER TRANSACTION IN THE PAST 10 YEARS
SECTION 12 FINANCIALS AS REPORTED FY 2022, PAST 7 YEARS
SECTION 13 PEER COMPARISON & RANKING OF CPG
STOCK IDENTIFIERS
GLOSSARY
SECTION 1 THE PAST QUARTER: ESG
1.1 February 10: Full Year Results
Record net new business which accelerated through the year Further Pound250m share buyback in H1 2023, taking total programme to Pound750m Performance highlights
Strong organic revenue growth of 37.5%. In Q4 2022, Group was at 116% of 2019 revenues with Business & Industry at 106%
Underlying operating margin improved by 170bps year on year to 6.2%, with H2 2022 at 6.5% Excellent net new business of 7.5% (5.7% rebased to 2019, above historical rate of 3%) Client retention rate up by 100bps year on year to a new record of 96.4%
New business wins increased to Pound2.5bn4
, with strong contributions from North America and Europe
First-time outsourcing market remains buoyant, accounting for c.45% of new business wins Investing in the business: Capex 2.7% of underlying revenue and net M&A expenditure of Pound268m Leverage of 1.3x net debt/EBITDA, within our target range of 1x-1.5x
Strategy Continuing to capitalise on the significant structural growth opportunities and the acceleration of outsourcing Ongoing investment in our market-leading digital and ESG capabilities Successfully issued first sustainable bonds to help deliver climate net zero by 2050
Shareholder returns Annual dividend per share increased to 31.5p Completed initial Pound500m share buyback, further Pound250m announced today to be completed in H1 2023
2023 outlook Constant-currency underlying operating profit growth expected to be above 20%, delivered through: - Organic revenue growth of around 15%, weighted towards H1 2023 - Underlying operating margin above 6.5%
Statutory results Statutory revenue increased by 42.5% Statutory operating profit up by 175.2%. The prior year included Pound157m of COVID-19 resizing costs
Source: Company Website
November 30 2022: Compass Group : Chairman's Statement
Business review
Dominic Blakemore, Group Chief Executive, said:
"The Group's performance surpassed our expectations both in terms of net new business growth and base volume recovery, with Business & Industry now operating above its pre-pandemic revenues. The strong growth trends seen in the first half have continued, with net new business accelerating through the year in all our regions. Our clients are continuing to face operational complexities and inflationary pressures, which are driving increased outsourcing, and we are successfully capitalising on the resulting growth opportunities.
North America continues to perform strongly, and we are particularly pleased with our progress in Europe, which is benefiting from an increased focus on growth and retention, supported by investments in our people, brands, and processes.
Thanks to the hard work of our teams across the world, Compass has emerged from the pandemic as a stronger and more resilient business, reflecting our clear strategy and market-leading growth enablers. While the macroeconomic environment is uncertain, we are working in partnership with our clients to mitigate inflationary pressures and supporting our colleagues during this challenging period by offering financial support and other benefits.
For 2023, we expect underlying operating profit growth to be above 20% on a constant-currency basis, to be delivered through organic revenue growth of around 15%, weighted towards the first half of the year, and underlying operating margin above 6.5%. Having completed the previously announced share buyback of Pound500m, we have announced a further share buyback of up to Pound250m, taking the total to Pound750m. Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels and rewarding shareholders with further returns."
Capital allocation
Our capital allocation framework is clear and unchanged.
SECTION 2 THE PAST QUARTER: PRESS RELEASES AND CORPORATE WIRE
2.1 Press Releases and Corporate Wire
March 17: Compass Group buys back 104,931 shares
Compass Group (CPG.L) announced a buyback of 104,931 shares worth GBP1,982,314 (or $2,385,065) on March 16, 2023. The buyback price was GBP18.89.
March 16: Compass Group buys back 484,399 shares
Compass Group (CPG.L) announced a buyback of 484,399 shares worth GBP9,086,647 (or $10,932,799) on March 15, 2023. The buyback price was GBP18.76.
March 15: Compass Group buys back 163,693 shares
Compass Group (CPG.L) announced a buyback of 163,693 shares worth GBP3,094,191 (or $3,758,424) on March 14, 2023. The buyback price was GBP18.90.
March 14: Compass Group buys back 452,743 shares
Compass Group (CPG.L) announced a buyback of 452,743 shares worth GBP8,572,915 (or $10,421,116) on March 13, 2023. The buyback price was GBP18.94.
March 13: Compass Group buys back 455,518 shares
Compass Group (CPG.L) announced a buyback of 455,518 shares worth GBP86,591 (or $103,216) on March 10, 2023. The buyback price was GBX19.01.
March 13: Compass Group buys back 455,518 shares
Compass Group (CPG.L) announced a buyback of 455,518 shares worth GBP8,659,078 (or $10,322,037) on March 10, 2023. The buyback price was GBP19.01.
March 10: Compass Group buys back 91,114 shares
Compass Group (CPG.L) announced a buyback of 91,114 shares worth GBP1,732,806 (or $2,065,588) on March 09, 2023. The buyback price was GBP19.02.
March 09: Compass Group buys back 43,989 shares
Compass Group (CPG.L) announced a buyback of 43,989 shares worth GBP839,429 (or $993,403) on March 08, 2023. The buyback price was GBP19.08.
March 09: Compass Group buys back 91,114 shares
Compass Group (CPG.L) announced a buyback of 91,114 shares worth GBP17,328 (or $20,506) on March 10, 2023. The buyback price was GBX19.02.
March 06: Compass Group buys back 294,199 shares
Compass Group (CPG.L) announced a buyback of 294,199 shares worth GBP5,638,059 (or $6,787,327) on March 03, 2023. The buyback price was GBP19.16.
March 03: Compass Group buys back 294,199 shares
Compass Group (CPG.L) announced a buyback of 294,199 shares worth GBP56,381 (or $67,313) on March 06, 2023. The buyback price was GBX19.16.
March 02: Compass Group buys back 1,107 shares
Compass Group (CPG.L) announced a buyback of 1,107 shares worth GBP21,144 (or $25,572) on March 01, 2023. The buyback price was GBP19.10.
February 10: Compass Group buys back 572,316 shares
Compass Group (CPG.L) announced a buyback of 572,316 shares worth GBP10,722,970 (or $13,032,236) on February 09, 2022. The buyback price was GBP18.74.
February 09: Compass Group buys back 549,755 shares
Compass Group (CPG.L) announced a buyback of 549,755 shares worth GBP10,386,851 (or $12,559,406) on February 08, 2023. The buyback price was GBP18.89.
February 09: Compass Group buys back 572,316 shares
Compass Group (CPG.L) announced a buyback of 572,316 shares worth GBP107,230 (or $130,327) on February 10, 2023. The buyback price was GBX18.74.
February 08: Compass Group buys back 549,755 shares
Compass Group (CPG.L) announced a buyback of 549,755 shares worth GBP103,869 (or $125,598) on February 09, 2023. The buyback price was GBX18.89.
February 07: Compass Group buys back 490,102 shares
Compass Group (CPG.L) announced a buyback of 490,102 shares worth GBP9,309,291 (or $11,183,699) on February 07, 2023. The buyback price was GBP18.99.
February 06: Compass Group buys back 35,225 shares
Compass Group (CPG.L) announced a buyback of 35,225 shares worth GBP666,682 (or $817,277) on February 03, 2023. The buyback price was GBP18.93.
February 09: Compass Group: AGM and Q1 Trading Update
AGM and Q1 Trading Update
This statement updates investors on Compass Group PLC's performance for the three months ended 31 December 2022 and is being issued ahead of the Company's Annual General Meeting. The AGM will be held at 12 noon today at Twickenham RFU Stadium.
Source: London Stock Exchange
2.2 Insider Selling
Wed Mar 22, 2023
Compass Group director Carol Arrowsmith sells shares worth GBP12,666
Wednesday March 22, 2023
Compass Group (L:CPG) Non-Executive Independent Director Carol Arrowsmith sold 650 shares worth GBP12,666 ($15,524) on March 20. The selling price was GBP19.49. The shares hit a one-month high on the day.
SECTION 3 TODAY'S BULLISH SIGNALS
3.1 Relative Value Indicators: Undervaluation compared with sector averages
| Sector | Dividend Yield % | |
| Forbes 2000 | Stock: 1.6; Sector: 1.0 | undervalued |
3.2 PAST WEEK: MODERATE MOMENTUM UP - CPG gains 7.2% on volume 1.2 times average
Compass Group (CPG) outperformed the FTSE 100 Index in 3 out of 5 days. The price ranged between a low of GBX1,926.50 on Thursday Mar 16 and a high of GBX2,008.0 on Wednesday Mar 22.
| Mar | Compass Group | Close [GBX] | Change % | RPC % * | Comment |
| Thu 16 | Adds GBP937 million ($1 billion) (2.8%) in MCap, top heavyweight rise in Travel & leisure sector | 1,926.5 | 2.8 | 1.9 | Top Rise; VI*=1.2 |
| Fri 17 | Up 3.6% in 2 days | 1,941 | 0.8 | 1.8 | VI*=2.4 |
| Mon 20 | Hits a 24-day high | 1,950.5 | 0.5 | -0.4 | Price rise on rising relative strength |
| Tue 21 | Hits year-high 2nd time in three months | 1,981.5 | 1.6 | -0.2 | VI*=1.2 |
| Wed 22 | Adds GBP473 million ($577 million) (1.3%) in MCap, top heavyweight rise in Travel & leisure sector | 2,008 | 1.3 | 1.2 | Week-high of 2,008 |
* RPC - Relative Price Change is % price change of stock less % change of the FTSE 100 Index.
[Volume Index (VI); 1 is average]
3.3 Rank in the top 6% by Relative Valuation in the United Kingdom market
| Description | Value | Rank |
| EV/EBITDA | 25.8 | In Top 6% |
3.4 Rank in the top 18% by Price Performance in the United Kingdom market
| Description | Value | Rank |
| 1-week Price Change % | 7.2 | In Top 7% |
| Price/MAP50 | 1.05 | In Top 14% |
| 1-month Price Change % | 2.8 | In Top 16% |
| PV1000 [1 yr] $ | 1,129 | In Top 18% |
3.5 Uptrend
Price/Moving Average Price of 1.1 and positive MACD:
- The Price/MAP 200 for Compass Group is 1.1. Being higher than 1 is a bullish indicator. It is higher than the Price/MAP 200 for the FTSE 100 Index of 1.01, a second bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of GBX1,913.99 is higher than the 200-day MAP of GBX1,817.69, a third bullish indicator. The 200-day MAP has increased to GBX1,817.69, a fourth bullish indicator.
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 1,940.81 minus the 26-day EMA of 1,926.45 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
Past Quarter:
In the last three months the stock has hit a new 52-week high thrice. The Best 3 weeks in the past quarter
In the past quarter the week beginning Monday February 13 saw the highest weekly rise of 2.5% for a relative price increase of 0.9%.
| Mon-Fri | Change % | FTSE 100 Index Change % | RPC % | Vol Ind [1 is avg] |
| Feb 13-17 | 2.5 | 1.6 | 0.9 | 0.7 |
| Mar 13-17 | 1.9 | -5.3 | 7.2 | 1.4 |
| Jan 30-Feb 03 | 1.3 | 1.8 | -0.4 | 1.3 |
3.6 Other Bullish Signals
- Interest cover defined by EBIT/I is 14.2 times. This indicates it is less leveraged.
MCap/Total Assets:
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.9. Compared with the rest of the market the stock is undervalued.
SECTION 4 ONGOING BULLISH PARAMETERS
4.1 EPS growth [FY2022 vs FY2021] of 213.0%:
| FY | EPS ( GBX) | Growth % |
| 2022 | 62.6 | 213.0 |
| 2021 | 20.0 | 150.0 |
4.2 Rule of 40
The stock scores a favorable score exceeding 40 when using the Rule of 40 (Revenue Growth plus EBITDA margin). Y.o.y revenue growth of 42%, EBITDA margin is 6.2% and the sum of the two 48.7% needs to exceed 40%.
4.3 Past three-years
- Compass Group rose for a third consecutive year. In the past three years it has risen GBX925.93 (85.6%).
4.4 Rank in the top 4% by Size in the United Kingdom market
| Description | Value | Rank |
| Annual Revenue | GBP25.5 billion ($31.1 billion) | In Top 2% |
| Ave daily Turnover | GBP45.2 million ($55.1 million) | In Top 3% |
| MCap | $44 billion | In Top 4% |
4.5 Present Value of GBP1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVGBP1000 > 1,062
| PVGBP1,000 | 3 mo ago | 1 yr ago | 3 yrs ago |
| CPG.L | GBP1,063 | GBP1,222 | GBP1,903 |
| Travel & Leisure sector | GBP1,109 | GBP1,058 | GBP3,171 |
| FTSE 100 Index | GBP1,006 | GBP1,013 | GBP1,458 |
4.6 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 4.9
3-Year price change of 85.6% for Compass Group outperformed the change of 45.8% in the FTSE 100 Index for a relative price change of 39.8%.
| Price Change % | Quarter | Year | 3 Years |
| Compass Group | 5 | 20.2 | 85.6 |
| Travel & Leisure sector | 10.9 | 5.8 | 217.1 |
| FTSE 100 Index | 1.3 | 1.7 | 45.8 |
4.7 Stock vs Index (Annual Percentage Change)
| December 31 | Last price in GBX | Annual Return | Return of FTSE 100 Index |
| 2022 | 1,910.8 | 18.7 | 1.7 |
| 2021 | 1,610.2 | 21.1 | 14.3 |
| 2020 | 1,329.3 | -26.9 | -14.3 |
| 2019 | 1,818.1 | 17.7 | 12.0 |
| 2018 | 1,544.2 | - | - |
Over 5 years Compass Group is up a total 23.7% at an annualized rate of 5.5% compared to the Index being up 11.6% at an annualized rate of 2.8%.
Compass Group has outperformed the FTSE 100 Index in 3 of the past 5
years: 2022, 2021, 2019.
4.8 Moving Annual Return of 22.0% in the past year:
Moving Annual Return was 22.0% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 12.1%. The Moving Annual Return has been positive in 4 of the last 5 years.
| CPG | Close (GBX) | Dividends (GBX) | Capital Gain / (Loss) % | % Yield | Annual Return % |
| Mar 22 | 2,008 | 31.5 | 20.2 | 1.9 | 22.0 |
| 1 Yr ago | 1,671.12 | 14 | 15.9 | 1 | 16.8 |
| 2 Yrs ago | 1,442.43 | - | 33.3 | - | 33.3 |
| 3 Yrs ago | 1,082.07 | 40 | (35.6) | 2.4 | (33.2) |
| 4 Yrs ago | 1,678.99 | 37.7 | 18.8 | 2.7 | 21.5 |
Close 5 years ago GBX1,413.0
4.9 MCap: 5-Year Increase of GBP12 B [$145M] (50%)
In the past 5 years Market Capitalization has increased by GBP11.9 billion (50%) from GBP24 billion to GBP35.9 billion. Based on a dynamic start date of 5 years ago, there has been only 1 decline in MCap over the last 5 years.
| Price | MCap (GBP B) | MCap ($ B) | |
| Last | GBX2,008.0 | 35.9 | 43.7 |
| 1 Year ago | GBX1,671.12 | 30.3 | 40.2 |
| 2 Years ago | GBX1,442.43 | 26.3 | 36.6 |
| 3 Years ago | GBX1,082.07 | 17.6 | 20.5 |
| 4 Years ago | GBX1,678.99 | 27.9 | 36.8 |
| 5 Years ago | GBX1,413.0 | 24 | 33.6 |
4.10 Created Market Value [CMV] past 16 yrs of GBP32.1 billion ($39.1 billion)
- Market Capitalization has increased by GBP35.8 billion from GBP63.8 million to GBP35.9 billion in the last 16 years. This increase comprises cumulative retained earnings (RETE) of GBP3.7 billion and Created Market Value of GBP32.1 billion. The Created Market Value multiple, defined by the change in MCap for every GBP1 of retained earnings is exemplary at GBP9.62.
4.11 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 8.7%
| TSR % | 1 yr | 3 yrs | 5 yrs | 10 yrs | 20 yrs |
| CPG.L | 22.2 | 23.7 | 8.8 | 11.3 | 12.1 |
4.12 Improved EBIT Margins:
EBIT margin is positive and has increased from 3.3% to 6.2% in the past year.
| FY | EBIT Margins (%) |
| 2022 | 6.2 |
| 2021 | 3.3 |
| 2020 | 1.8 |
| 2019 | 6.0 |
| 2018 | 6.7 |
4.13 Safe Interest Cover and Improving
Interest cover of 14.2 is above a safe benchmark figure of 3. Moreover, it has shown steady improvement in the past two years.
| Years | Interest cover |
| 2022 | 14.23 |
| 2021 | 4.87 |
| 2020 | 2.46 |
4.14 Increase in Insider Buying
In the past 5 years a total of 88,571 Compass Group shares worth GBP1.3 million were bought by insiders. Based on a dynamic start date of 5 years ago, insider buying has averaged 17,714 shares per year. In the past year, insiders bought 9,985 shares, a significant increase from the previous year.
| Year | No. of Shares | Value, GBP |
| Mar 22, 2023 | 9,985 | 185,243 |
| 1 Yr ago | 105 | 1,788 |
| 2 Yrs ago | 68,205 | 959,795 |
| 3 Yrs ago | 2,375 | 44,459 |
| 4 Yrs ago | 7,901 | 131,313 |
| Total | 88,571 | 1,322,599 |
4.15 Increased VWAP, up 18% in 5 years
In the past five years Volume Weighted Average Price (VWAP) has increased by 18.5% to GBX1,800.03.
Past five years, 12 months ended Mar 22 (GBX)
| Year | High Price | VWAP | Low Price |
| 2023 | 2009.0 | 1800.03 | 1542.56 |
| 2022 | 1792.56 | 1516.01 | 1361.0 |
| 2021 | 1586.28 | 1227.46 | 957.92 |
| 2020 | 2068.23 | 1730.12 | 844.39 |
| 2019 | 1697.14 | 1519.31 | 1332.27 |
4.16 Satisfies one criterion of Benjamin Graham
-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there has been only 1 decline in earnings in the last 5 years.
4.17 Satisfies 6 out of 9 criteria of Joseph Piotroski [pass mark 5]:
- Return on Assets improvement [from 2.4% to 6%].
- Improvement in long-term debt to total assets from 0.2 to 0.2.
- Improvement in current ratio from 0.9 to 1.
- Reduction in total shares on issue.
- Improvement in gross margin [from 2.9% to 5.7%].
- Improvement in asset turnover [growth in revenue of 42.5 exceeded growth in assets of 26.1%].
4.18 Year-over-year (%) Change in Dividend:
Final dividend for FY 2022 was GBP22.10. The year-on-year change was up 57.9% from GBP14.0 in the previous year FY 2021.
| Final | FY 2021 | FY 2022 |
| Dividend (GBX) | 14.0 | 22.1 |
SECTION 5 TODAY'S BEARISH SIGNALS
5.1 Relative Value Indicators: Overvaluation compared with sector averages
5.2 Relative Value Indicators: Overvaluation compared with Index averages and bond yield
- Earnings yield of 3.1% is less attractive compared with the United Kingdom average earning yield of 7.5%.
- The earnings yield of 3.1% is below the 10-year bond yield of 3.4%.
(All figures in %)
| Earnings Yield | 3.1 |
| United Kingdom avg | 7.5 |
| Dividend Yield | 1.6 |
| Bond Yield | 3.4 |
The Dividend Yield of 1.6% is worse than the Index average of 5.8%
- The relative yield of the stock, defined by its yield of 1.6%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 5.8% is 27.1%. This suggests the stock is overvalued in dividend yield terms.
| Sector | P/E | |
| Forbes 2000 | Stock: 32.1; Sector: 12.9 | overvalued |
5.3 Rank in the bottom 20% by Relative Valuation in the United Kingdom market
| Description | Value | Rank |
| Dividend Yield % | 1.6% | In Bottom 20% |
| Price/Earnings | 32.1 | In Bottom 14% |
5.4 Other Bearish Signals
- Total Liabilities/EBITDA of 8.1 is more than 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.
- Net profit margin has averaged 2.3% in the last 3 years. This suggests the company is less profitable with a low margin of safety.
5.5 Overbought/Bearish/Resistance Signals:
- At GBX2,008.0 the price has risen above the upper Bollinger band resistance of GBX1,988.69, indicating a downside risk for it to fall back within the band.
- The stock is overbought according to the Williams % R indicator of -0.7, suggesting the price is close to its 14-day high of GBX2,009.0.
SECTION 6 ONGOING BEARISH PARAMETERS
6.1 Rank in the bottom 14% by Gearing in the United Kingdom market
| Description | Value | Rank |
| Total Debt to Equity | 0.8 | In Bottom 14% |
6.2 Rank in the bottom 20% by Performance in the United Kingdom market
| Description | Value | Rank |
| EBITDA Margin % | 6.2 | In Bottom 20% |
| Net Profit Margin % | 4.4 | In Bottom 18% |
6.3 Total Shares on Issue: 2-Year Increase of 7.3%
In the past 2 years total shares on issue have increased by 121 million (7.3%) from 1.7 billion to 1.8 billion. Buybacks have averaged 2 million shares [0.1%] per financial year. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.
| Year End (Sep 30) | Total Shares on Issue |
| 2022 | 1,779,000,000 |
| 2021 | 1,785,000,000 |
| 2020 | 1,658,000,000 |
6.4 P/E/G > 1
The price earnings ratio of 32.1 divided by trailing twelve months eps growth of 213.0% corresponds to P/E/G of 15.1 times.
| EPS Growth (%) | 213.0 |
| P/E/G | 15.06 |
| P/E | 32.08 |
6.5 High Debt to Equity (%)
The debt to equity ratio of 82.6% is above a safe benchmark figure of 70%. However, it has improved from 91.1% a year ago.
| Years | Debt to Equity (%) |
| Sep 2022 | 82.59 |
| Sep 2021 | 91.08 |
| Sep 2020 | 19.57 |
| Sep 2019 | 114.11 |
| Sep 2018 | 165.88 |
6.6 Declining Volume, down 16% in 5 years
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 15.8% to 3 million shares.
Avg. Daily Volume Traded 12 months ended Mar 22, million shares
| Year | ADVT |
| 2023 | 3.0 |
| 2022 | 2.1 |
| 2021 | 4.4 |
| 2020 | 3.4 |
| 2019 | 3.6 |
6.7 Declining share turnover
In the past five years, average daily share turnover has decreased 1.1% to GBP54 million ($65.9 million). This suggests decreased liquidity.
Past five years, 12 months ended Mar 22 (GBP million)
| Year | Average Daily Turnover |
| 2023 | 54.0 |
| 2022 | 32.3 |
| 2021 | 54.3 |
| 2020 | 58.5 |
| 2019 | 54.6 |
SECTION 7 CORPORATE PROFILE
7.1 Activities
Compass Group PLC, through its subsidiaries, provides contract foodservice and support services to its clients. It offers various foodservice solutions ranging from free-flow restaurants to formal dining, grab and go deli and caf outlets to hospitality services, and vending; and a range of support services, such as cleaning, building operations and maintenance, business and office, logistics and transport, outdoor, project management, and security. The company also operates fine dining facilities. It provides its services under the Eurest, Eurest Services, Restaurant Associates, Bon Apptit Management, FLIK International, as well as Chartwells, Scolarest, MEDIREST, MORRISON, Crothall, All Leisure, and ESS brand names. Compass Group serves business and industry; healthcare and seniors; education; sports and leisure; and defense, offshore, and remote sectors. The company serves approximately 4 billion meals a year in 40,000 client locations. It offers its services in the United Kingdom, Ireland, Continental Europe, North America, South America, the Middle East, Africa, central Asia, and the Asia Pacific. The company was founded in 1941 and is based in Chertsey, the United Kingdom. It is the largest Travel & leisure company by market capitalisation in the United Kingdom,
7.2 Contact Details
| Website | http://www.compass-group.com |
| Physical Address | Compass House, Guildford Street, Chertsey, KT16 9BQ, United Kingdom |
| Phone | 44-1932-573000 |
| Fax | 44-1932-569956 |
7.3 Industry & Sector [of 217 stocks]
| Classification Level | Name of Sector |
| Industry Group | Hotels & Entertainment Services |
| Industry | Leisure & Recreation |
| Economic Sector | Consumer Cyclicals |
| Business Sector | Cyclical Consumer Services |
SECTION 8 FINANCIALS FY 2022
8.1 CPG Financials Summary: EPS up 213% to 62.60 GBX in FY2022 [ y.e. 30 Sep 2022]
+ Net profit was up 211.8% from $432.3 million in FY2021 to $1.3 billion in FY2022.
+ Earnings Per Share (EPS) was up 213% from 20.0 GBX in FY2021 to 62.60 GBX in FY2022.
| Year ended Sep | FY2022 | FY2021 | FY2020 |
| Sales ($ B) | 30.9 | 21.7 | 24.1 |
| Pretax ($) | 1.8B | 561.9M | 254.3M |
| Net ($) | 1.3B | 432.3M | 161.1M |
| EPS (GBP) | 0.626 | 0.2 | 0.08 |
8.2 Financials, FY 2022 [year-ended 30 September 2022 ]
Compass Group Net Profit up 212%
Release Date: November 23, 2022
Compass Group (L:CPG) reported net profit for the year-ended 30 September 2022 [FY2022] of GBP1.1b ($1.2b), up 212% from GBP357m ($481m) in the previous year [FY2021]. Earnings per share (EPS) were up 213% from GBX20.0 (US26.94c) in FY2021 to GBX63.0 (US69.62c) in FY2022.
8.3 Annual growth in Revenue, Net Profit and EPS
| Year-ended | 30 September [FY/2022] | 30 September [FY/2021] |
| Revenue, GBP Billion | 25.5 | 17.9 |
| Revenue, $ Billion | 28.2 | 19.8 |
| Growth in Revenue % | 42.5 | -10.2 |
| Net Profit, GBP | 1.1b | 357m |
| Net Profit, $ | 1.2b | 394m |
| Growth in Net Profit % | 211.8 | 168.4 |
| EPS, GBX | 62.6 | 20.0 |
| Growth in EPS % | 213.0 | 150.0 |
Major changes compared with previous year (FY2022 vs FY2021):
Favourable Changes:
- Sales revenue up 42.5% from GBP17.9b ($24.1b) to GBP25.5b ($28.2b)
- EBIT Margin up from 3.3% to 6.2%
- Total revenue to total assets up from 1.2 to 1.4
- Cost of Goods Sold to Sales down from 97.1% to 94.3%
- Profit before tax to Sales up from 2.6% to 5.8%
Unfavourable Changes:
- Total non-current assets to Total Assets down from 66.7% to 64.3%
- Total Liabilities to EBITDA of 8.1 compares unfavourably with the Joseph Piotroski benchmark of 5. However, it has improved by 52.3% from the previous year's ratio of 17.0.
- Total Liabilities to Operating Cash Flow of 8.1 compares unfavourably with the Joseph Piotroski benchmark of 4. However, it has improved by 5.3% from the previous year's ratio of 8.5.
Year-on-year comparison of Performance Ratios [FY2022 vs FY2021]
| September 30 | FY2022 | FY2021 | Change (%) |
| Debt/Equity | 0.8 | 0.9 | Down 8.8 |
| Common Size Ratios by Assets % | |||
| Current Debtors to Total Assets | 21.8 | 18.6 | Up 17.2 |
| Long-term investments to Total Assets | 6.1 | 3.6 | Up 68.6 |
| Future income tax benefit to Total Assets | 1.2 | 1.4 | Down 15.8 |
Currency Conversion (September 30, 2022): $1 = GBP0.9
Currency Conversion (September 30, 2021): $1 = GBP0.74
Five-year record of growth and performance:
In the last 5 years Total Revenue averaged GBP26,796.4M ($29,610M), EBITDA averaged GBP1,107M ($1,223.2M) and Net Profit averaged GBP778M ($859.7M). Compound Annual Growth Rate (CAGR) averaged 2.5% for Total Revenue, -0.8% for Net Profit and 0.8% for EBITDA.
| Description | Annual (GBP B) | Annual ($ B) | 5-year Avg (GBP M) | 5-year Avg ($ M) | 5-year CAGR % |
| Total Revenue | 25.5 | 28.2 | 26,796.4 | 29,610 | 2.5 |
| EBITDA | 1.6 | 1.7 | 1,107 | 1,223.2 | 0.8 |
| Operating Profit | 1.6 | 1.7 | 1,107 | 1,223.2 | 0.3 |
| Net Profit | 1.1 | 1.2 | 778 | 859.7 | (0.8) |
Five-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE
In 2022 Net Profit Margin of 4.4% was above its 5-year Avg of 2.8% (All Figures in %)
| Description | 2022 | 5-year Avg |
| EBITDA Margin | 6.2 | 4.1 |
| Operating Profit Margin | 6.2 | 4.1 |
| Net Profit Margin | 4.4 | 2.8 |
| Return on Equity | 18.9 | 21.1 |
| Return on Assets | 6 | 5.4 |
| Return on Capital Employed | 13.5 | 12.7 |
SECTION 9 DIVIDEND
9.1 Dividend History
In the past 2 years annual dividends have increased by GBX17.5 from GBX14.0 to GBX31.5. Based on a start date of 2 years ago, there has been no decline in dividends over the last 2 years.
| Date Paid | Value (GBX) | Type |
| 19 Jan 2023 | 22.1 | Final |
| 09 Jun 2022 | 9.4 | Interim |
| Tr 12 Months | 31.5 | |
| 2021 - 2022 | 14 |
SECTION 10 TOP MANAGEMENT AND BOARD OF DIRECTORS
10.1 Top Management
Top Management [Two top executives with tenure < 5 yrs]
| Name | Designation | Since Appointment |
| Alison Yapp | Company Secretary | 4 Yrs, 5 Mos |
| Dominic Blakemore | Chief Executive Officer, Deputy Group Chief Executive | - |
10.2 Board Of Directors
Board Of Directors
| Name |
| Stefan Bomhard |
| Nelson Luiz Costa Silva |
| Carol Arrowsmith |
| John Bason |
| Ireena Vittal |
| John Bryant |
| Anne-Francoise Nesmes |
10.3 Resignations in the past 4 years
| Name | Designation | Date of Resignation |
| Mark J. White | Company Secretary | 30 September 2018 |
| Don Robert | Independent Non-Executive Director | 31 May 2018 |
10.4 Profiles of Top Management
Dominic Blakemore
CEO
Appointment: Joined the Board in February 2012. Dominic previously held the roles of Group Finance Director and Group Chief Operating Officer, Europe. In October 2017, Dominic was appointed Deputy Group CEO. He assumed the role of Group CEO in January 2018.
Committee membership: Corporate Responsibility, Executive and General Business.
Key skills and competencies: Dominic has extensive financial management experience in a number of international businesses together with general operational management experience. Dominic is a chartered accountant.
Current external appointments: Dominic joined the board of London Stock Exchange Group (LSEG) as a non-executive director on 1 January 2020 and is Chairman of LSEG's Audit Committee. Dominic is also a member of the Council of University College London.
Previous experience: Dominic was formerly non-executive director of Shire plc and Chief Financial Officer of Iglo Foods Group Limited. Before joining Iglo Dominic was European Finance & Strategy Director at Cadbury Plc having previously held senior finance roles at that company. Prior to his role at Cadbury Plc, Dominic was a director at PricewaterhouseCoopers LLP.
10.5 Profiles of Board of Directors
Carol Arrowsmith
Non-Executive Independent Director
Key skills and competencies Carol brings extensive advisory experience, especially of advising boards on executive remuneration across a range of sectors. Career Carol is a former partner and advisor of Deloitte LLP and was Vice Chairman of the UK business and former director of the Remuneration Consultants Group. Carol is a Fellow of the Chartered Institute of Personnel and Development. Current external appointments Member of the Advisory Group for Spencer Stuart, director and trustee of Northern Ballet Limited, a non-executive director of TMF Group PLC and director of Arrowsmith Advisory Limited.
John Bason
Non-Executive Independent Director
Appointment Appointed to the Board in June 2011.
Committee membership Audit (Chairman), Corporate Responsibility, Nomination and Remuneration.
Skills and previous experience Member of the Institute of Chartered Accountants in England and Wales. John was previously Finance Director of Bunzl plc.
Current external appointments Finance Director of Associated British Foods plc, Trustee of Voluntary Service Overseas and Chairman of the charity FareShare.
Stefan Bomhard
Non-Executive Independent Director
Key skills and competencies Stefan brings extensive experience of working in international environments, particularly relating to the operation, sales and marketing of well-known consumer food and drink brands. Career Stefan was previously Regional President, Europe, Geneva at Bacardi Martini for five years and held a number of worldwide senior positions at Cadbury Plc, Unilever PLC, Diageo plc, Burger King and Procter & Gamble. Current external appointments Chief Executive Officer of Inchcape plc.
Nelson Luiz Costa Silva
Non-Executive Independent Director
Nelson joined BG Group in 2009, where he is currently Senior Vice President responsible for Brazil, Bolivia and Uruguay. Previously he was President of the Aluminium business unit at BHP Billiton, based in the UK. Prior to joining BHP Billiton, he held a number of senior positions at Vale, including Sales and Marketing Director based in Belgium, Japan and Brazil. Nelson was also Managing Director of Embraer for Europe and Africa based in France and Chief Executive Officer of All Logistica in Argentina. Nelson is a Brazilian national and will bring to the Board 40 years of international experience in mining, logistics, aluminium and oil and gas industries.
John Bryant
Non-Executive Independent Director
Mr. John A. Bryant is appointed as Non-Executive Director of the Company with effective September 1, 2018. KEY SKILLS AND COMPETENCIES John brings over 30 years' experience to the Board with particular focus on finance, operations, M&A, strategy and portfolio transformation. CAREER John was the former Executive Chairman and CEO of global consumer goods company Kellogg. Prior to joining Kellogg in 1998, John held strategic and operational roles in several companies, worldwide. CURRENT EXTERNAL APPOINTMENTS Non-executive director of Ball Corporation and Macy's Inc. and an advisor to Godiva.
Ireena Vittal
Non-Executive Independent Director
Ireena joined Nestle in India after completing her MBA in 1990 and was the head of marketing and sales at Hutchinson Max Telecom before joining Mckinsey & Company, where she was a partner. After retiring from McKinsey & Company in 2012 Ireena joined the boards of GlaxoSmithKline Consumer Healthcare (from which she stepped down in 2014), Titan Company, Tata Industries/Global Beverages, the Indian Hotels Company, WIPRO, Godrej Consumer Products, Axis Bank and Zomato, in each case as an independent Non-executive director. Ireena is an Indian national and will bring to the Board a wealth of experience including that of working in India which is an important fast growing and emerging market for Compass.
SECTION 11 INSIDER TRANSACTION IN THE PAST 10 YEARS
11.1 Insider buying Summary in the past 12 months
| Name | No. of Shares | Price, GBP | Value, GBP |
| Carol Arrowsmith [Non-Executive Independent Director] | 1,228 | 19.5 | 23,903 |
| Ireena Vittal [Non-Executive Independent Director] | 111 | 18.0 | 1,993 |
| Total | 1,339 | 19.3 | 25,896 |
11.2 Carol Arrowsmith [Non-Executive Independent Director] Reported Buying In The Past 12 Months
In the past year shares bought per month averaged 102.
| Month | No. of Shares | Price, GBP | Value, GBP |
| Mar '23 | 1,166 | 19.46 | 22,696 |
| July 29, 2022 | 62 | 19.47 | 1,207 |
| Total: Carol Arrowsmith | 1,228 | 19.5 | 23,903 |
11.3 Ireena Vittal [Non-Executive Independent Director] Reported Buying In The Past 12 Months
| Month | No. of Shares | Price, GBP | Value, GBP |
| June 07, 2022 | 111 | 17.96 | 1,993 |
11.4 Insider selling Summary in the past 12 months
| Name | No. of Shares | Price, GBP | Value, GBP |
| Carol Arrowsmith [Non-Executive Independent Director] | 1,677 | 19.5 | 32,677 |
| Total | 1,677 | 19.5 | 32,677 |
11.5 Carol Arrowsmith [Non-Executive Independent Director] Reported Selling In The Past 12 Months
| Month | No. of Shares | Price, GBP | Value, GBP |
| Mar '23 | 1,677 | 19.49 | 32,677 |
SECTION 12 FINANCIALS AS REPORTED FY 2022, PAST 7 YEARS
12.1 Financials as reported (FY 2022 [year-ended 30 September 2022 ])
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(In GBP Million, except per share data and shares outstanding)
INCOME STATEMENT AS REPORTED (FY 2022 [year-ended 30 September 2022 ])
| Description | GBP Million | GBP Million | |
| Sep 30 | 2022 | 2021 | Change % |
| Revenue | 25,512 | 17,908 | Up 42.5 |
| Operating costs | -24,057 | -17,394 | Deterioration 38.3 |
| Operating profit before joint ventures and associates | 1,455 | 514 | Up 183.1 |
| Share of results of joint ventures and associates | 135 | 297 | Down 54.5 |
| Underlying operating profit1 | 1,590 | 811 | Up 96.1 |
| Acquisition-related costs | -92 | -106 | Improved 13.2 |
| COVID-19 resizing credit/(costs) | 4 | -157 | Recovery |
| One-off pension charge | -2 | ||
| Tax on share of profit of joint ventures | -2 | -1 | Deterioration 100.0 |
| Operating profit | 1,500 | 545 | Up 175.2 |
| Net (loss)/gain on sale and closure of businesses | -7 | 10 | Deterioration |
| Finance income | 11 | 7 | Up 57.1 |
| Finance expense | -111 | -120 | Improved 7.5 |
| Other financing items | 76 | 22 | Up 245.5 |
| Finance costs | -24 | -91 | Improved 73.6 |
| Profit before tax | 1,469 | 464 | Up 216.6 |
| Income tax expense | -352 | -107 | Deterioration 229.0 |
| Profit for the year | 1,117 | 357 | Up 212.9 |
| ATTRIBUTABLE TO | |||
| Equity shareholders | 1,113 | 357 | Up 211.8 |
| Non-controlling interests | 4 | ||
| Profit for the year | 1,117 | 357 | Up 212.9 |
| BASIC EARNINGS PER SHARE | 62.60 GBX | 20.0 GBX | Up 213.0 |
| DILUTED EARNINGS PER SHARE | 62.60 GBX | 20.0 GBX | Up 213.0 |
| Average number of shares | 1,779,000,000 | 1,785,000,000 | Down 0.3 |
BALANCE SHEET AS REPORTED (FY 2022 [year-ended 30 September 2022 ])
| Description | GBP Million | GBP Million | |
| Sep 30 | 2022 | 2021 | Change % |
| NON-CURRENT ASSETS | |||
| Goodwill | 5,119 | 4,550 | Up 12.5 |
| Other intangible assets | 1,960 | 1,617 | Up 21.2 |
| Costs to obtain and fulfil contracts | 1,106 | 923 | Up 19.8 |
| Right-of-use assets | 821 | 759 | Up 8.2 |
| Property plant and equipment | 948 | 835 | Up 13.5 |
| Interests in joint ventures and associates | 270 | 256 | Up 5.5 |
| Other investments | 790 | 166 | Up 375.9 |
| Post-employment benefit assets | 581 | 353 | Up 64.6 |
| Trade and other receivables | 162 | 129 | Up 25.6 |
| Deferred tax assets | 230 | 212 | Up 8.5 |
| Derivative financial instruments | 76 | 116 | Down 34.5 |
| Non-current assets | 12,063 | 9,916 | Up 21.7 |
| CURRENT ASSETS | |||
| Inventories | 511 | 327 | Up 56.3 |
| Trade and other receivables | 3,988 | 2,684 | Up 48.6 |
| Tax recoverable | 106 | 82 | Up 29.3 |
| Cash and cash equivalents | 1,983 | 1,840 | Up 7.8 |
| Derivative financial instruments | 71 | 2 | Up 3,450.0 |
| 6,659 | 4,935 | Up 34.9 | |
| Assets held for sale 10 | 26 | 17 | Up 52.9 |
| Current assets | 6,685 | 4,952 | Up 35.0 |
| Total assets | 18,748 | 14,868 | Up 26.1 |
| CURRENT LIABILITIES | |||
| Borrowings | -693 | -481 | Deterioration 44.1 |
| Lease liabilities | -194 | -180 | Deterioration 7.8 |
| Derivative financial instruments | -6 | -9 | Improved 33.3 |
| Provisions | -269 | -298 | Improved 9.7 |
| Current tax liabilities | -245 | -169 | Deterioration 45.0 |
| Trade and other payables | -5,626 | -4,090 | Deterioration 37.6 |
| Current liabilities | -7,033 | -5,227 | Deterioration 34.6 |
| NON-CURRENT LIABILITIES | |||
| Borrowings | -3,271 | -3,154 | Deterioration 3.7 |
| Lease liabilities | -719 | -665 | Deterioration 8.1 |
| Derivative financial instruments | -237 | -7 | Deterioration 3,285.7 |
| Post-employment benefit obligations | -759 | -224 | Deterioration 238.8 |
| Provisions | -310 | -283 | Deterioration 9.5 |
| Deferred tax liabilities | -160 | -84 | Deterioration 90.5 |
| Trade and other payables | -354 | -305 | Deterioration 16.1 |
| Non-current liabilities | -5,810 | -4,722 | Deterioration 23.0 |
| Total liabilities | -12,843 | -9,949 | Deterioration 29.1 |
| Net assets | 5,905 | 4,919 | Up 20.0 |
| EQUITY | |||
| Share capital | 198 | 198 | Steady |
| Share premium | 189 | 189 | Steady |
| Capital redemption reserve | 295 | 295 | Steady |
| Own shares | -519 | -2 | Deterioration 25,850.0 |
| Other reserves | 4,292 | 3,969 | Up 8.1 |
| Retained earnings | 1,419 | 242 | Up 486.4 |
| Total equity shareholders' funds | 5,874 | 4,891 | Up 20.1 |
| Non-controlling interests | 31 | 28 | Up 10.7 |
| Total equity | 5,905 | 4,919 | Up 20.0 |
CASH FLOW AS REPORTED (FY 2022 [year-ended 30 September 2022 ])
| Description | GBP Million | GBP Million | |
| Sep 30 | 2022 | 2021 | Change % |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Cash generated from operations | 2,024 | 1,492 | Up 35.7 |
| Interest paid | -96 | -121 | Improved 20.7 |
| Tax received | 31 | 29 | Up 6.9 |
| Tax paid | -363 | -229 | Deterioration 58.5 |
| Net cash flow from operating activities | 1,596 | 1,171 | Up 36.3 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Purchase of subsidiary companies | -263 | -157 | Deterioration 67.5 |
| Purchase of interests in joint ventures and associates | -28 | -5 | Deterioration 460.0 |
| Net proceeds/(payments) from sale of subsidiary companies joint ventures and associates net of exit costs2 | 35 | -11 | Recovery |
| Purchase of intangible assets | -177 | -155 | Deterioration 14.2 |
| Purchase of contract fulfilment assets | -218 | -231 | Improved 5.6 |
| Purchase of property plant and equipment | -282 | -228 | Deterioration 23.7 |
| Proceeds from sale of property plant and equipment/intangible assets/contract fulfilment assets | 37 | 44 | Down 15.9 |
| Purchase of other investments | -42 | -20 | Deterioration 110.0 |
| Proceeds from sale of other investments | 3 | 3 | Steady |
| Dividends received from joint ventures and associates | 51 | 28 | Up 82.1 |
| Interest received | 10 | 5 | Up 100.0 |
| Net cash flow from investing activities | -874 | -727 | Deterioration 20.2 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Purchase of own shares - share buyback programme | -425 | ||
| Purchase of own shares - employee share-based payments | -6 | -3 | Deterioration 100.0 |
| Increase in borrowings | 677 | ||
| Repayment of borrowings | -297 | -7 | Deterioration 4,142.9 |
| Net cash flow from derivative financial instruments | -67 | 11 | Deterioration |
| Repayment of principal under lease liabilities | -152 | -153 | Improved 0.7 |
| Purchase of non-controlling interests | -2 | ||
| Dividends paid to equity shareholders | -418 | ||
| Dividends paid to non-controlling interests | -3 | ||
| Net cash flow from financing activities | -693 | -152 | Deterioration 355.9 |
| CASH AND CASH EQUIVALENTS | |||
| Net increase in cash and cash equivalents | 29 | 292 | Down 90.1 |
| Cash and cash equivalents at 1 October | 1,656 | 1,387 | Up 19.4 |
| Currency translation gains/(losses) on cash and cash equivalents | 47 | -25 | Recovery |
| Sub-total | 1,732 | 1,654 | Up 4.7 |
| Cash reclassified from held for sale | 2 | ||
| Cash and cash equivalents at 30 September | 1,732 | 1,656 | Up 4.6 |
12.2 Download COMPASS GROUP Financials Past 7 Years
| Description (September 30) | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Income Statement | |||||||
| Revenue per share | 14.34 | 10.03 | 12.03 | 28.86 | 13.85 | ||
| Other Revenue | 25.2 B | 23.1 B | 354 M | ||||
| EBITDA (B) | 1.5 | ||||||
| Depreciation (M) | (39) | ||||||
| EBIT | 1.6 B | 584 M | 354 M | 1.1 B | |||
| Interest (M) | 111 | 120 | 144 | 159 | |||
| Profit before tax | 1.5 B | 464 M | 210 M | 940 M | |||
| Tax (M) | (352) | (107) | (75) | (351) | (385) | (389) | 130 |
| Net profit | 1.1 B | 357 M | 133 M | 1.1 B | 1.1 B | 1.2 B | 786 M |
| EPS | 0.63 | 0.2 | 0.08 | 0.72 | 0.71 | 0.71 | |
| Balance Sheet | |||||||
| Equity Share Capital (B) | 5.9 | 4.9 | 4.8 | 3.4 | 2.6 | 2.1 | 3.4 |
| Retained Earnings | 1.4 B | 242 M | (35 M) | (1.7 B) | (2.2 B) | (2.9 B) | 1.5 B |
| Total Debt | 4.9 B | 4.5 B | 942 M | 3.9 B | 4.4 B | 4 B | 179 M |
| Total Assets (B) | 18.7 | 14.9 | 14.7 | 13.3 | 12.6 | 11 | 7.9 |
| Current Asset (B) | 6.7 | 5 | 4.2 | 4.1 | 4.5 | 3.5 | 2.9 |
| Fixed Asset | 948 M | 835 M | 970 M | 1.1 B | 1 B | 1 B | 380 M |
| Working Capital | (348 M) | (275 M) | (257 M) | (1.3 B) | (1.1 B) | (746 M) | 1.2 B |
| Cash Flow | |||||||
| Operating Cash Flow | 1.6 B | 1.2 B | 845 M | 2 B | 1.8 B | 1.6 B | 579 M |
| Investing Cash Flow | (874 M) | (727 M) | (1 B) | (1.1 B) | (1.1 B) | (728 M) | 52 M |
| Financing Cash Flow | (693 M) | (152 M) | 1.2 B | (1.4 B) | (135 M) | (853 M) | (616 M) |
| Net Cash Flow | 29 M | 292 M | 1 B | (579 M) | 602 M | 52 M | 15 M |
SECTION 13 PEER COMPARISON & RANKING OF CPG
13.1 PEER COMPARISON: CPG IN INDICES
Compass Group is a constituent of the following indices.
Its market capitalisation is $44 billion and accounts for 1.7% of the combined MCap of the FTSE 100 Index.
| Index Name | MCap of Index ($ b) | CPG MCap as % of Index |
| FTSE 100 Index | 2,566 | 1.7 |
| FTSE 350 Index | 2,981 | 1.5 |
| FTSE All-Share Index | 3,058 | 1.4 |
13.2 GLOBAL PEER COMPARISON: CPG - SIZE (all figures in $)
In its Global Peer Group of 9 companies CPG is ranked CPG is ranked first (1) by Revenue, second (2) by Total Assets, third (3) by Net Profit and fourth (4) by MCap.
| Name (Code) | MCap | Revenue | Net Profit | Total Assets |
| Rank of CPG | 4 | 1 | 3 | 2 |
| Compass Group (CPG) | 43.7B | 31.3B | 1.4B | 23B |
| McDonald's (MCD) | 199.3B | 23.2B | 6.2B | 50.4B |
| China Tourism Group Duty Free (601888) | 58.6B | 9.8B | 1.4B | 8.1B |
| Chipotle Mexican Grill (CMG) | 45.4B | 8.6B | 899.1M | 6.9B |
| YUM! Brands (YUM) | 36.6B | 6.8B | 1.3B | 5.8B |
| Sands China (01928) | 28.1B | 2.9B | (1B) | 10.1B |
| Evolution AB (EVO) | 26.9B | 1.6B | 904.2M | 4.7B |
| Restaurant Brands International (QSR) | 19.3B | 6.5B | 1B | 22.7B |
| Darden Restaurants (DRI) | 18.8B | 9.6B | 952.8M | 10.1B |
GLOBAL PEER COMPARISON: CPG - RELATIVE VALUE INDICATORS
In value terms, comparing relative value of its shares, CPG is ranked
+ 5 out of 9 by Dividend Yield (%) [1.6]
+ 5 out of 9 by Price/Earnings per share [31.6]
+ 1 out of 9 by Price/Sales per share [1.4]
| Name (Code) | Currency Code | Last Price | Div Yld (%) | P/E | P/S |
| Rank of CPG by value | 5 | 5 | 1 | ||
| Compass Group (CPG) | GBX | 2,008 | 1.6 | 31.6 | 1.4 |
| McDonald's (MCD) | USD | 270.9 | 2.1 | 32.2 | 8.6 |
| China Tourism Group Duty Free (601888) | CNY | 184.7 | 0.8 | 36.9 | 6.0 |
| Chipotle Mexican Grill (CMG) | USD | 1,637.5 | 50.4 | 5.2 | |
| YUM! Brands (YUM) | USD | 128.7 | 1.8 | 27.8 | 17.6 |
| Sands China (01928) | HKD | 27.2 | 9.8 | ||
| Evolution AB (EVO) | SEK | 1,295.4 | 1.1 | 29.9 | 16.8 |
| Restaurant Brands International (QSR) | CAD | 85.9 | 4.2 | 18.9 | 2.9 |
| Darden Restaurants (DRI) | USD | 153.6 | 3.1 | 21.1 | 1.9 |
USD 1=
82.000932 Pence Sterling (GBX); 6.884 Chinese Yuan (CNY); 7.845 Hong Kong Dollar (HKD); 10.347 Swedish Krona (SEK); 1.373 Canadian Dollar (CAD)ChartPath:Global Peer Group - Price Performance:/home/jboss/jboss-3.2.7/server/default/deploy/BuySellSignals.war/report/Unitedkingdom/Stock/PDF/Daily/chart/new/710_GlobalPeerGroup.svg
13.3 BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING:
Compass Group vs United Kingdom Market
Out of 1,197 stocks and 85 units in the United Kingdom Market, Compass Group is ranked eleventh(11) by Revenue, Twenty-fifth(25) by Market Cap in $, Seventy-sixth(76) by Free Cash Flow and Eighty-third(83) by Net Profit $.
| United Kingdom Avg | CPG | CPG Rank | |
| Revenue $ | 1.6 B | 31.1 B | 11 |
| Market Cap $ | 11.7 B | 43.7 B | 25 |
| Free Cash Flow | 164.6 M | 210 M | 76 |
| Net Profit $ | 200.4 M | 1.4 B | 83 |
| P/Earnings/ Growth | 0.1x | 15.1x | 169 |
| P/Sales | 1.7x | 1.4x | 186 |
| ROE (%) | 12.3 | 18.9 | 325 |
| P/Earnings | 13.4x | 32.1x | 397 |
| ROA (%) | 1.3 | 5.96 | 613 |
| Yield (%) | 2.2 | 1.6 | 616 |
| EBITDA Margin% | 16.9 | 6.2 | 658 |
| Total Debt/Equity (the lower the better) | 0.7x | 0.8x | 1056 |
| Discount to 52-Wk High (%) | 4.5 | 0.1 | 1293 |
Negative values are shown in brackets.
13.4 MARKET SHARE
Compass Group vs Travel & Leisure sector [Travel & Leisure sector Total in Brackets]
Revenue of GBP25.5 billion ($31.1 billion)[36.5% of aggregate sector revenue of GBP74.8 billion; down from 44.7% in the previous year.]
13.5 GLOBAL RANK [out of 47,534 stocks] AND RANK OF COMPASS GROUP IN THE EUROPE REGION [out of 7,453 stocks]
| Description | Value | Global Rank | In Eur Region |
| MCap ($) | 43.7B | 393 | 84 |
| Total Assets ($) | 23B | 1,739 | 332 |
| Revenue ($) | 31.3B | 479 | 98 |
| Net Profit ($) | 1.4B | 1,019 | 200 |
| Return on Equity % | 18.9 | 5,788 | 1,140 |
| Net Profit Margin % | 4.4 | 20,393 | 3,001 |
| Price/Earnings | 31.6 | 18,671 | 2,597 |
| Yield % | 1.6 | 16,320 | 2,895 |
| PV1000 (1Year) $* | 1,129 | 8,177 | 1,578 |
| $* Change (1Year) % | 11.4 | 7,949 | 1,526 |
* 1 year ago GBP 1 = $ 1.33
Mar 22, 2023: GBP 1 equals $ 1.22
13.6 RANK OF COMPASS GROUP IN THE FTSE 100 INDEX [out of 91 stocks], IN THE UNITED KINGDOM MARKET [out of 1338 stocks] AND IN THE TRAVEL & LEISURE SECTOR [out of 42 stocks]
| Description | Value | In FTSE 100 Index | In United Kingdom Market | In Travel & leisure sector |
| MCap (GBP) | 35.9B | 15 | 18 | 1 |
| Total Assets (GBP) | 18.7B | 34 | 55 | 2 |
| Revenue (GBP) | 25.5B | 13 | 20 | 1 |
| Net Profit (GBP) | 1.1B | 28 | 35 | 1 |
| Return on Equity % | 18.9 | 31 | 266 | 7 |
| Net Profit Margin % | 4.4 | 66 | 716 | 14 |
| Price/Earnings | 32.1 | 56 | 695 | 17 |
| Yield % | 1.6 | 75 | 657 | 11 |
| PV1000 (1Year) GBX | 1,222 | 13 | 145 | 4 |
13.7 LONG-TERM FUNDAMENTAL RANKING: 4 OUT OF 5 [5 is best]
Compass Group is ranked number 1 out of 62 listed travel & leisure companies in the United Kingdom with a market capitalization of GBP35.9 billion ($43.7 billion).
It has a strong relative ROE of 18.9% and ROA of 6%.
Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.
STOCK IDENTIFIERS
ISIN: GB00BD6K4575
PermID: 4295895403
RIC: CPG.L
GLOSSARY
ADVT: Average Daily Volume of shares Traded
Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: Current Assets/Current Liabilities (times)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
EBIT Margin : Earnings Before Interest and Tax/Revenue (%)
Earnings Yield: Earnings Per Share/Share Price (%)
Income during the n years (3/2/1): Dividends received during the Period
Interest Cover: Earnings Before Interest and Tax/Interest (times)
Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price: Latest Price/Moving Average Price
Price/Earnings: Share Price/Earnings Per Share (times)
Price/Sales: Share Price/Sales Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Return on Assets: Net Profit/Total Assets (%)
Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)
TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend
TTM: Trailing 12 Months
Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period
Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.
Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.
Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.
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