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

Mitchells & Butlers Plc

Compass Group Plc

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JD Wetherspoon Plc

SSP Group Plc

Domino's Pizza Group Plc

DP Eurasia NV

Loungers Plc

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 Net Profit of 12.64%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at GBP 6,955 MM
ROCE(HY) Highest at 27.06%
DIVIDEND PER SHARE(HY) Highest at GBP 7.61

Market Beating performance in long term as well as near term

Along with generating 30.36% returns in the last 1 year, the stock has outperformed FTSE 100 in the last 3 years, 1 year and 3 months

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?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Compass Group Plc

30.36%

0.52

51.17%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.41%

EBIT Growth (5y)

188.06%

EBIT to Interest (avg)

8.64

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

3.13

Tax Ratio

31.82%

Dividend Payout Ratio

58.98%

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

6.89

EV to EBIT

17.90

EV to EBITDA

12.33

EV to Capital Employed

4.06

EV to Sales

1.28

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

22.70%

ROE (Latest)

29.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 6,955 MM

ROCE(HY)

Highest at 27.06%

DIVIDEND PER SHARE(HY)

Highest at GBP 7.61

NET SALES(Q)

Highest at GBP 24,983 MM

RAW MATERIAL COST(Y)

Fallen by -1.06% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 55.2 times

EPS(Q)

Highest at GBP 0.63

-5What is not working for the Company

INTEREST(HY)

At GBP 233 MM has Grown at 39.52%

CASH AND EQV(HY)

Lowest at GBP 523 MM

DEBT-EQUITY RATIO (HY)

Highest at 108.3 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.61 times

Here's what is working for Compass Group Plc

Operating Cash Flow

Highest at GBP 6,955 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)

Net Sales

Highest at GBP 24,983 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Dividend per share

Highest at GBP 7.61 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

EPS

Highest at GBP 0.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Inventory Turnover Ratio

Highest at 55.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.06% (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 822 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

At GBP 233 MM has Grown at 39.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Cash and Eqv

Lowest at GBP 523 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 108.3 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 7.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio