Compass Group (CPG: GBX2,008.0) adds GBP473 million ($577 million) (1.3%) in MCap, Non-Executive Independent Director Carol Arrowsmith sells 22 March 2023

STOCK REVIEW

www.buysellsignals.com

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

ExchangeUNITED KINGDOM [CHI-X (UK),London]52-Week Price Range1,542.56 - 2,009.00
Currency1.000 GBP = 1.22 USDSectorTravel & Leisure
Mar 22, 2023GBX2,008.0Independent RatingRanked 848 in Forbes 2000
EPS (FY2022)0.63 GBXMarket CapGBP36 billion [US$44 billion]
CPG Dividend Yield % (TTM)Stock 1.6; Sector 0.6Shares Outstanding1,785,403,977
DPS (past 12 months)GBX23CPG in IndicesFTSE 100
EPS Growth (FY2022 vs FY2021)213%PVGBX1000 (1 yr)
PVUS$1000 (1 yr)
GBX1,222
US$1,129*
Ave Daily Volume3,001,992 shares

Reported buyback transactions [TTM]
PeriodNo. of sharesWeighted Average price, GBXValue, GBX
Mar 232,932,52418.9855,656,527
Feb 233,448,61618.8464,973,783
Jan 235,242,04219.1100,103,114
Dec 225,435,52119103,272,359
Nov 221,320,66518.3924,289,612
Oct 222,105,0681837,887,622
Sep 224,222,71818.6878,880,542
Aug 223,102,24119.1859,489,151
Jul 223,594,38918.2365,541,440
Jun 226,713,50317.06114,529,751
May 22721,37117.9412,941,011
Total38,838,658

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:

+ PRICE VOLUME CHARTS 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

SectorDividend Yield %
Forbes 2000Stock: 1.6; Sector: 1.0undervalued

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.

MarCompass GroupClose [GBX]Change %RPC % *Comment
Thu 16Adds GBP937 million ($1 billion) (2.8%) in MCap, top heavyweight rise in Travel & leisure sector1,926.52.81.9Top Rise; VI*=1.2
Fri 17Up 3.6% in 2 days1,9410.81.8VI*=2.4
Mon 20Hits a 24-day high1,950.50.5-0.4Price rise on rising relative strength
Tue 21Hits year-high 2nd time in three months1,981.51.6-0.2VI*=1.2
Wed 22Adds GBP473 million ($577 million) (1.3%) in MCap, top heavyweight rise in Travel & leisure sector2,0081.31.2Week-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

DescriptionValueRank
EV/EBITDA25.8In Top 6%

3.4 Rank in the top 18% by Price Performance in the United Kingdom market

DescriptionValueRank
1-week Price Change %7.2In Top 7%
Price/MAP501.05In Top 14%
1-month Price Change %2.8In Top 16%
PV1000 [1 yr] $1,129In 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-FriChange %FTSE 100 Index Change %RPC %Vol Ind [1 is avg]
Feb 13-172.51.60.90.7
Mar 13-171.9-5.37.21.4
Jan 30-Feb 031.31.8-0.41.3

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%:

FYEPS ( GBX)Growth %
202262.6213.0
202120.0150.0

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

DescriptionValueRank
Annual RevenueGBP25.5 billion ($31.1 billion)In Top 2%
Ave daily TurnoverGBP45.2 million ($55.1 million)In Top 3%
MCap$44 billionIn 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

PVGBP1,0003 mo ago1 yr ago3 yrs ago
CPG.LGBP1,063GBP1,222GBP1,903
Travel & Leisure sectorGBP1,109GBP1,058GBP3,171
FTSE 100 IndexGBP1,006GBP1,013GBP1,458

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 %QuarterYear3 Years
Compass Group520.285.6
Travel & Leisure sector10.95.8217.1
FTSE 100 Index1.31.745.8

4.7 Stock vs Index (Annual Percentage Change)

December 31Last price in GBX Annual ReturnReturn of FTSE 100 Index
20221,910.818.71.7
20211,610.221.114.3
20201,329.3-26.9-14.3
20191,818.117.712.0
20181,544.2--

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.

CPGClose (GBX)Dividends (GBX)Capital Gain / (Loss) %% YieldAnnual Return %
Mar 222,00831.520.21.922.0
1 Yr ago1,671.121415.9116.8
2 Yrs ago1,442.43-33.3-33.3
3 Yrs ago1,082.0740(35.6)2.4(33.2)
4 Yrs ago1,678.9937.718.82.721.5

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.

PriceMCap (GBP B)MCap ($ B)
LastGBX2,008.035.943.7
1 Year agoGBX1,671.1230.340.2
2 Years agoGBX1,442.4326.336.6
3 Years agoGBX1,082.0717.620.5
4 Years agoGBX1,678.9927.936.8
5 Years agoGBX1,413.02433.6

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 yr3 yrs5 yrs10 yrs20 yrs
CPG.L22.223.78.811.312.1

4.12 Improved EBIT Margins:

EBIT margin is positive and has increased from 3.3% to 6.2% in the past year.

FYEBIT Margins (%)
20226.2
20213.3
20201.8
20196.0
20186.7

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.

YearsInterest cover
202214.23
20214.87
20202.46

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.

YearNo. of SharesValue, GBP
Mar 22, 20239,985185,243
1 Yr ago1051,788
2 Yrs ago68,205959,795
3 Yrs ago2,37544,459
4 Yrs ago7,901131,313
Total88,5711,322,599

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)

YearHigh PriceVWAPLow Price
20232009.01800.031542.56
20221792.561516.011361.0
20211586.281227.46957.92
20202068.231730.12844.39
20191697.141519.311332.27

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.

FinalFY 2021FY 2022
Dividend (GBX)14.022.1

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 Yield3.1
United Kingdom avg7.5
Dividend Yield1.6
Bond Yield3.4

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.

SectorP/E
Forbes 2000Stock: 32.1; Sector: 12.9overvalued

5.3 Rank in the bottom 20% by Relative Valuation in the United Kingdom market

DescriptionValueRank
Dividend Yield %1.6%In Bottom 20%
Price/Earnings32.1In 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

DescriptionValueRank
Total Debt to Equity0.8In Bottom 14%

6.2 Rank in the bottom 20% by Performance in the United Kingdom market

DescriptionValueRank
EBITDA Margin %6.2In Bottom 20%
Net Profit Margin %4.4In 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
20221,779,000,000
20211,785,000,000
20201,658,000,000

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/G15.06
P/E32.08

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.

YearsDebt to Equity (%)
Sep 202282.59
Sep 202191.08
Sep 202019.57
Sep 2019114.11
Sep 2018165.88

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

YearADVT
20233.0
20222.1
20214.4
20203.4
20193.6

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)

YearAverage Daily Turnover
202354.0
202232.3
202154.3
202058.5
201954.6

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

Websitehttp://www.compass-group.com
Physical AddressCompass House, Guildford Street, Chertsey, KT16 9BQ, United Kingdom
Phone44-1932-573000
Fax44-1932-569956

7.3 Industry & Sector [of 217 stocks]

Classification LevelName of Sector
Industry GroupHotels & Entertainment Services
IndustryLeisure & Recreation
Economic SectorConsumer Cyclicals
Business SectorCyclical 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 SepFY2022FY2021FY2020
Sales ($ B)30.921.724.1
Pretax ($)1.8B561.9M254.3M
Net ($)1.3B432.3M161.1M
EPS (GBP)0.6260.20.08

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-ended30 September [FY/2022]30 September [FY/2021]
Revenue, GBP Billion25.517.9
Revenue, $ Billion28.219.8
Growth in Revenue %42.5-10.2
Net Profit, GBP1.1b357m
Net Profit, $1.2b394m
Growth in Net Profit %211.8168.4
EPS, GBX62.620.0
Growth in EPS %213.0150.0

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 30FY2022FY2021Change (%)
Debt/Equity0.80.9Down 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.

DescriptionAnnual (GBP B)Annual ($ B)5-year Avg (GBP M)5-year Avg ($ M)5-year CAGR %
Total Revenue25.528.226,796.429,6102.5
EBITDA1.61.71,1071,223.20.8
Operating Profit1.61.71,1071,223.20.3
Net Profit1.11.2778859.7(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 %)

Description20225-year Avg
EBITDA Margin6.24.1
Operating Profit Margin6.24.1
Net Profit Margin4.42.8
Return on Equity18.921.1
Return on Assets65.4
Return on Capital Employed13.512.7

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 PaidValue (GBX)Type
19 Jan 202322.1Final
09 Jun 20229.4Interim
Tr 12 Months31.5
2021 - 202214

SECTION 10 TOP MANAGEMENT AND BOARD OF DIRECTORS

10.1 Top Management

Top Management [Two top executives with tenure < 5 yrs]

NameDesignationSince Appointment
Alison YappCompany Secretary4 Yrs, 5 Mos
Dominic BlakemoreChief 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

NameDesignationDate of Resignation
Mark J. WhiteCompany Secretary30 September 2018
Don RobertIndependent Non-Executive Director31 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

NameNo. of SharesPrice, GBPValue, GBP
Carol Arrowsmith [Non-Executive Independent Director]1,22819.523,903
Ireena Vittal [Non-Executive Independent Director]11118.01,993
Total1,33919.325,896

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.

MonthNo. of SharesPrice, GBPValue, GBP
Mar '231,16619.4622,696
July 29, 20226219.471,207
Total: Carol Arrowsmith 1,22819.523,903

11.3 Ireena Vittal [Non-Executive Independent Director] Reported Buying In The Past 12 Months

MonthNo. of SharesPrice, GBPValue, GBP
June 07, 202211117.961,993

11.4 Insider selling Summary in the past 12 months

NameNo. of SharesPrice, GBPValue, GBP
Carol Arrowsmith [Non-Executive Independent Director]1,67719.532,677
Total1,67719.532,677

11.5 Carol Arrowsmith [Non-Executive Independent Director] Reported Selling In The Past 12 Months

MonthNo. of SharesPrice, GBPValue, GBP
Mar '231,67719.4932,677

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 ])

DescriptionGBP MillionGBP Million
Sep 3020222021Change %
Revenue25,51217,908Up 42.5
Operating costs-24,057-17,394Deterioration 38.3
Operating profit before joint ventures and associates1,455514Up 183.1
Share of results of joint ventures and associates135297Down 54.5
Underlying operating profit11,590811Up 96.1
Acquisition-related costs-92-106Improved 13.2
COVID-19 resizing credit/(costs)4-157Recovery
One-off pension charge-2
Tax on share of profit of joint ventures-2-1Deterioration 100.0
Operating profit1,500545Up 175.2
Net (loss)/gain on sale and closure of businesses-710Deterioration
Finance income117Up 57.1
Finance expense-111-120Improved 7.5
Other financing items7622Up 245.5
Finance costs-24-91Improved 73.6
Profit before tax1,469464Up 216.6
Income tax expense-352-107Deterioration 229.0
Profit for the year1,117357Up 212.9
ATTRIBUTABLE TO
Equity shareholders1,113357Up 211.8
Non-controlling interests4
Profit for the year1,117357Up 212.9
BASIC EARNINGS PER SHARE62.60 GBX20.0 GBXUp 213.0
DILUTED EARNINGS PER SHARE62.60 GBX20.0 GBXUp 213.0
Average number of shares1,779,000,0001,785,000,000Down 0.3

BALANCE SHEET AS REPORTED (FY 2022 [year-ended 30 September 2022 ])

DescriptionGBP MillionGBP Million
Sep 3020222021Change %
NON-CURRENT ASSETS
Goodwill5,1194,550Up 12.5
Other intangible assets1,9601,617Up 21.2
Costs to obtain and fulfil contracts1,106923Up 19.8
Right-of-use assets821759Up 8.2
Property plant and equipment948835Up 13.5
Interests in joint ventures and associates270256Up 5.5
Other investments790166Up 375.9
Post-employment benefit assets581353Up 64.6
Trade and other receivables162129Up 25.6
Deferred tax assets230212Up 8.5
Derivative financial instruments76116Down 34.5
Non-current assets12,0639,916Up 21.7
CURRENT ASSETS
Inventories511327Up 56.3
Trade and other receivables3,9882,684Up 48.6
Tax recoverable10682Up 29.3
Cash and cash equivalents1,9831,840Up 7.8
Derivative financial instruments712Up 3,450.0
6,6594,935Up 34.9
Assets held for sale 102617Up 52.9
Current assets6,6854,952Up 35.0
Total assets18,74814,868Up 26.1
CURRENT LIABILITIES
Borrowings-693-481Deterioration 44.1
Lease liabilities-194-180Deterioration 7.8
Derivative financial instruments-6-9Improved 33.3
Provisions-269-298Improved 9.7
Current tax liabilities-245-169Deterioration 45.0
Trade and other payables-5,626-4,090Deterioration 37.6
Current liabilities-7,033-5,227Deterioration 34.6
NON-CURRENT LIABILITIES
Borrowings-3,271-3,154Deterioration 3.7
Lease liabilities-719-665Deterioration 8.1
Derivative financial instruments-237-7Deterioration 3,285.7
Post-employment benefit obligations-759-224Deterioration 238.8
Provisions-310-283Deterioration 9.5
Deferred tax liabilities-160-84Deterioration 90.5
Trade and other payables-354-305Deterioration 16.1
Non-current liabilities-5,810-4,722Deterioration 23.0
Total liabilities-12,843-9,949Deterioration 29.1
Net assets5,9054,919Up 20.0
EQUITY
Share capital198198Steady
Share premium189189Steady
Capital redemption reserve295295Steady
Own shares-519-2Deterioration 25,850.0
Other reserves4,2923,969Up 8.1
Retained earnings1,419242Up 486.4
Total equity shareholders' funds5,8744,891Up 20.1
Non-controlling interests3128Up 10.7
Total equity5,9054,919Up 20.0

CASH FLOW AS REPORTED (FY 2022 [year-ended 30 September 2022 ])

DescriptionGBP MillionGBP Million
Sep 3020222021Change %
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations2,0241,492Up 35.7
Interest paid-96-121Improved 20.7
Tax received3129Up 6.9
Tax paid-363-229Deterioration 58.5
Net cash flow from operating activities1,5961,171Up 36.3
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of subsidiary companies-263-157Deterioration 67.5
Purchase of interests in joint ventures and associates-28-5Deterioration 460.0
Net proceeds/(payments) from sale of subsidiary companies joint ventures and associates net of exit costs235-11Recovery
Purchase of intangible assets-177-155Deterioration 14.2
Purchase of contract fulfilment assets-218-231Improved 5.6
Purchase of property plant and equipment-282-228Deterioration 23.7
Proceeds from sale of property plant and equipment/intangible assets/contract fulfilment assets3744Down 15.9
Purchase of other investments-42-20Deterioration 110.0
Proceeds from sale of other investments33Steady
Dividends received from joint ventures and associates5128Up 82.1
Interest received105Up 100.0
Net cash flow from investing activities-874-727Deterioration 20.2
CASH FLOW FROM FINANCING ACTIVITIES
Purchase of own shares - share buyback programme-425
Purchase of own shares - employee share-based payments-6-3Deterioration 100.0
Increase in borrowings677
Repayment of borrowings-297-7Deterioration 4,142.9
Net cash flow from derivative financial instruments-6711Deterioration
Repayment of principal under lease liabilities-152-153Improved 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-693-152Deterioration 355.9
CASH AND CASH EQUIVALENTS
Net increase in cash and cash equivalents29292Down 90.1
Cash and cash equivalents at 1 October1,6561,387Up 19.4
Currency translation gains/(losses) on cash and cash equivalents47-25Recovery
Sub-total1,7321,654Up 4.7
Cash reclassified from held for sale2
Cash and cash equivalents at 30 September1,7321,656Up 4.6

12.2 Download COMPASS GROUP Financials Past 7 Years

Description (September 30)2022202120202019201820172016
Income Statement
Revenue per share14.3410.0312.0328.8613.85
Other Revenue25.2 B23.1 B354 M
EBITDA (B)1.5
Depreciation (M)(39)
EBIT1.6 B584 M354 M1.1 B
Interest (M)111120144159
Profit before tax1.5 B464 M210 M940 M
Tax (M)(352)(107)(75)(351)(385)(389)130
Net profit1.1 B357 M133 M1.1 B1.1 B1.2 B786 M
EPS0.630.20.080.720.710.71
Balance Sheet
Equity Share Capital (B)5.94.94.83.42.62.13.4
Retained Earnings1.4 B242 M(35 M)(1.7 B)(2.2 B)(2.9 B)1.5 B
Total Debt4.9 B4.5 B942 M3.9 B4.4 B4 B179 M
Total Assets (B)18.714.914.713.312.6117.9
Current Asset (B)6.754.24.14.53.52.9
Fixed Asset948 M835 M970 M1.1 B1 B1 B380 M
Working Capital(348 M)(275 M)(257 M)(1.3 B)(1.1 B)(746 M)1.2 B
Cash Flow
Operating Cash Flow1.6 B1.2 B845 M2 B1.8 B1.6 B579 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 Flow29 M292 M1 B(579 M)602 M52 M15 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 NameMCap of Index ($ b)CPG MCap as % of Index
FTSE 100 Index2,566 1.7
FTSE 350 Index2,981 1.5
FTSE All-Share Index3,058 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)MCapRevenueNet ProfitTotal Assets
Rank of CPG4132
Compass Group (CPG)43.7B31.3B1.4B23B
McDonald's (MCD)199.3B23.2B6.2B50.4B
China Tourism Group Duty Free (601888)58.6B9.8B1.4B8.1B
Chipotle Mexican Grill (CMG)45.4B8.6B899.1M6.9B
YUM! Brands (YUM)36.6B6.8B1.3B5.8B
Sands China (01928)28.1B2.9B(1B)10.1B
Evolution AB (EVO)26.9B1.6B904.2M4.7B
Restaurant Brands International (QSR)19.3B6.5B1B22.7B
Darden Restaurants (DRI)18.8B9.6B952.8M10.1B

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 CodeLast PriceDiv Yld (%)P/EP/S
Rank of CPG by value551
Compass Group (CPG)GBX2,0081.631.61.4
McDonald's (MCD)USD270.92.132.28.6
China Tourism Group Duty Free (601888)CNY184.70.836.96.0
Chipotle Mexican Grill (CMG)USD1,637.550.45.2
YUM! Brands (YUM)USD128.71.827.817.6
Sands China (01928)HKD27.29.8
Evolution AB (EVO)SEK1,295.41.129.916.8
Restaurant Brands International (QSR)CAD85.94.218.92.9
Darden Restaurants (DRI)USD153.63.121.11.9

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 AvgCPGCPG Rank
Revenue $1.6 B31.1 B11
Market Cap $11.7 B43.7 B25
Free Cash Flow164.6 M210 M76
Net Profit $200.4 M1.4 B83
P/Earnings/ Growth0.1x15.1x169
P/Sales1.7x1.4x186
ROE (%)12.318.9325
P/Earnings13.4x32.1x397
ROA (%)1.35.96613
Yield (%)2.21.6616
EBITDA Margin%16.96.2658
Total Debt/Equity (the lower the better)0.7x0.8x1056
Discount to 52-Wk High (%)4.50.11293

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]

DescriptionValueGlobal RankIn Eur Region
MCap ($)43.7B39384
Total Assets ($)23B1,739332
Revenue ($)31.3B47998
Net Profit ($)1.4B1,019200
Return on Equity %18.95,7881,140
Net Profit Margin %4.420,3933,001
Price/Earnings31.618,6712,597
Yield %1.616,3202,895
PV1000 (1Year) $*1,1298,1771,578
$* Change (1Year) %11.47,9491,526

* 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]

DescriptionValueIn FTSE 100 IndexIn United Kingdom MarketIn Travel & leisure sector
MCap (GBP)35.9B15181
Total Assets (GBP)18.7B34552
Revenue (GBP)25.5B13201
Net Profit (GBP)1.1B28351
Return on Equity %18.9312667
Net Profit Margin %4.46671614
Price/Earnings32.15669517
Yield %1.67565711
PV1000 (1Year) GBX1,222131454

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.

Created by www.buysellsignals.com