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Compass Group PLC ADR CMPGY

Morningstar Rating
$27.99 +0.07 (0.23%)
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Company Report

Compass Group Momentum Carrying Through Into 2024

Compass Group is the largest food-service provider internationally and one of the most entrenched. Its extensive footprint serves a diversified mix of sectors and geographies, providing the foundation for a narrow economic moat that generates consistent revenue streams and healthy cash flow. Combining this dynamic with an asset-light operating structure leads to strong returns on invested capital. Demand for Compass' services is moderately tied to both consumer and enterprise-level discretionary spending, which adds some cyclicality. Nevertheless, Compass appears well positioned to grow as enterprise-level outsourcing gains traction for the longer term.

Price vs Fair Value

CMPGY is trading at a 1% discount.
Price
$27.58
Fair Value
$38.50
Uncertainty
Medium
1-Star Price
$65.73
5-Star Price
$29.11
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Compass is well positioned to benefit from a secular shift toward outsourcing in developed markets.

Bears

Corporate spending for food-service programs is often pressured during economic downturns, which can affect a large portion of Compass' overall business.

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News

Trading Information

Previous Close Price
$27.92
Day Range
$27.58–28.06
52-Week Range
$23.90–30.19
Bid/Ask
$27.73 / $28.12
Market Cap
$47.65 Bil
Volume/Avg
86,278 / 162,768

Key Statistics

Price/Earnings (Normalized)
25.03
Price/Sales
1.28
Dividend Yield (Trailing)
1.96%
Dividend Yield (Forward)
1.96%
Total Yield
4.36%

Company Profile

Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales of more than GBP 30 billion. Compass Group’s model stems from operating on-premises catering facilities, rather than centralised industrial kitchens. Food service is Compass' core focus and contributes more than 80% of revenue. In addition, the company provides support services to clients through activities including cleaning services, office services (for example, concierge services), grounds maintenance, and so on.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Large Growth
Total Number of Employees
562,460

Competitors

Valuation

Metric
CMPGY
SW
Price/Earnings (Normalized)
25.0316.70
Price/Book Value
7.602.67
Price/Sales
1.280.52
Price/Cash Flow
18.2012.11
Price/Earnings
CMPGY
SW

Financial Strength

Metric
CMPGY
SW
Quick Ratio
0.651.11
Current Ratio
0.751.22
Interest Coverage
9.835.65
Quick Ratio
CMPGY
SW

Profitability

Metric
CMPGY
SW
Return on Assets (Normalized)
8.39%5.08%
Return on Equity (Normalized)
27.41%22.19%
Return on Invested Capital (Normalized)
15.99%9.76%
Return on Assets
CMPGY
SW
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