Compass Group PLC
Compass Group PLC Fundamental Analysis
Compass Group PLC (CMPGF) shows moderate financial fundamentals with a PE ratio of 24.39, profit margin of 3.57%, and ROE of 19.42%. The company generates $39.8B in annual revenue with strong year-over-year growth of 35.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CMPGF's fundamental strength across five key dimensions:
Efficiency Score
WeakCMPGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCMPGF trades at attractive valuation levels.
Growth Score
ModerateCMPGF shows steady but slowing expansion.
Financial Health Score
ModerateCMPGF shows balanced financial health with some risks.
Profitability Score
ModerateCMPGF maintains healthy but balanced margins.
Key Financial Metrics
Is CMPGF Expensive or Cheap?
P/E Ratio
CMPGF trades at 24.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CMPGF's PEG of 1.21 indicates fair valuation.
Price to Book
The market values Compass Group PLC at 4.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.44 times EBITDA. This is generally considered low.
How Well Does CMPGF Make Money?
Net Profit Margin
For every $100 in sales, Compass Group PLC keeps $3.57 as profit after all expenses.
Operating Margin
Core operations generate 6.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.42 in profit for every $100 of shareholder equity.
ROA
Compass Group PLC generates $5.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Compass Group PLC generates limited operating cash flow of $2.53B, signaling weaker underlying cash strength.
Free Cash Flow
Compass Group PLC produces free cash flow of $2.12B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.25 in free cash annually.
FCF Yield
CMPGF converts 6.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How CMPGF Stacks Against Its Sector Peers
| Metric | CMPGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.39 | 24.38 | Neutral |
| ROE | 19.42% | 1159.00% | Weak |
| Net Margin | 3.57% | -390.00% (disorted) | Weak |
| Debt/Equity | 0.91 | 0.78 | Neutral |
| Current Ratio | 0.73 | 2.60 | Weak Liquidity |
| ROA | 5.32% | -30346.00% (disorted) | Weak |
CMPGF outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Compass Group PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.05%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
17.66%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
49.40%
Industry Style: Cyclical, Growth, Discretionary
High Growth