Narrow-moat Compass Group delivered strong third-quarter results, sending shares higher in early trading. Organic revenue growth was north of 10%, another quarter of strong performance. Volumes were better than expected, which management attributed to their superior value compared with the high Street. Compass Group shares screen as fairly valued relative to our GBX 2,250 fair value estimate.
Compass is well positioned to benefit from a secular shift toward outsourcing in developed markets.
Corporate spending for food-service programs is often pressured during economic downturns, which can affect a large portion of Compass' overall business.
|
Metric
|
CPG
|
SW
|
|---|---|---|
Price/Earnings (Normalized) | 33.79 | 17.82 |
Price/Book Value | 7.82 | 2.85 |
Price/Sales | 1.28 | 0.56 |
Price/Cash Flow | 18.05 | 12.92 |
|
Metric
|
CPG
|
SW
|
|---|---|---|
Quick Ratio | 0.66 | 1.11 |
Current Ratio | 0.78 | 1.22 |
Interest Coverage | 9.87 | 5.65 |
|
Metric
|
CPG
|
SW
|
|---|---|---|
Return on Assets (Normalized) | 8.97% | 5.08% |
Return on Equity (Normalized) | 30.10% | 22.19% |
Return on Invested Capital (Normalized) | 17.59% | 9.76% |
|
1-Day Chart
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Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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