Compass Group Plc (CPG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Compass Group Plc

Mitchells & Butlers Plc

JD Wetherspoon Plc

Marston's Plc

Fuller, Smith & Turner Plc

Young & Co.'s Brewery Plc

Loungers Plc

SSP Group Plc

Domino's Pizza Group Plc

DP Eurasia NV

The Restaurant Group Plc

Why is Compass Group Plc ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 17.93%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.64

With a growth in Operating Profit of 14.54%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at GBP 5,096.66 MM
ROCE(HY) Highest at 26.55%
DIVIDEND PER SHARE(HY) Highest at GBP 8.16

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Compass Group Plc should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Compass Group Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Compass Group Plc

-19.58%

-0.79

22.04%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.08%

EBIT Growth (5y)

35.22%

EBIT to Interest (avg)

8.64

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

3.01

Tax Ratio

31.82%

Dividend Payout Ratio

58.18%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

17.93%

ROE (avg)

18.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.90

EV to EBIT

17.10

EV to EBITDA

11.96

EV to Capital Employed

4.51

EV to Sales

1.22

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

26.40%

ROE (Latest)

28.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 5,096.66 MM

ROCE(HY)

Highest at 26.55%

DIVIDEND PER SHARE(HY)

Highest at GBP 8.16

OPERATING PROFIT(Q)

Highest at GBP 1,891.08 MM

RAW MATERIAL COST(Y)

Fallen by -14.29% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 56.66 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.16 times

OPERATING PROFIT MARGIN(Q)

Highest at 10.8 %

PRE-TAX PROFIT(Q)

Highest at GBP 1,193.66 MM

NET PROFIT(Q)

Highest at GBP 880.51 MM

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 968.7

CASH AND EQV(HY)

Lowest at GBP 427.11 MM

INTEREST(Q)

Highest at GBP 195.22 MM

Here's what is working for Compass Group Plc

Operating Cash Flow

Highest at GBP 5,096.66 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Operating Profit

Highest at GBP 1,891.08 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (GBP MM)

Dividend per share

Highest at GBP 8.16 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Operating Profit Margin

Highest at 10.8 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 1,193.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 880.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Net Profit

At GBP 880.51 MM has Grown at 58.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Inventory Turnover Ratio

Highest at 56.66 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -14.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 553.62 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Compass Group Plc

Interest Coverage Ratio

Lowest at 968.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 195.22 MM

in the last five periods and Increased by 48.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Cash and Eqv

Lowest at GBP 427.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents