Compass (CPG) AI Stock Analysis

• Market Cap: £42.82B
• Dividend Yield: 2.21%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.47
• Revenue Growth: 7.67%
• EPS Growth: -15.09%
• Country: UK
• Employees: 580,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.48
• Shares Outstanding: 1,697,430,200
• 10 Day Avg. Volume: 3,446,516
• 30 Day Avg. Volume: 2,284,416
• PEG Ratio: 3.11
• Price to Book (P/B): 5.98
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 18.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,868.33
• Price Target Upside: 13.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: 2,744.00p ▲(8.76% Upside)

Compass's strong financial performance is the most significant factor, indicating robust growth and efficient cash flow management. However, technical analysis suggests potential bearish momentum, and the high P/E ratio indicates limited valuation upside. The dividend yield provides some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, supporting long-term business sustainability and competitive positioning.

Cash Flow Management

Robust cash flow management ensures the company can fund operations and growth initiatives, enhancing financial stability and strategic flexibility.

Operational Efficiency

High operational efficiency reflects effective cost management and resource utilization, contributing to sustained profitability and competitive advantage.

Negative Factors

Equity Proportion

A lower equity proportion may limit financial flexibility and increase vulnerability to economic downturns, necessitating improvements for long-term resilience.

Earnings Decline

A decline in earnings per share can indicate challenges in maintaining profitability, potentially affecting investor confidence and future growth prospects.

Debt Levels

While leverage is manageable, maintaining control over debt levels is crucial to avoid financial strain and ensure long-term financial health.

Compass Business Overview & Revenue Model

Company Description

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

How the Company Makes Money

Compass generates revenue primarily through the sale of its consumer packaged goods across various retail channels, including supermarkets, convenience stores, and e-commerce platforms. Key revenue streams include direct sales of its branded products, private label partnerships, and distribution agreements with major retailers. Additionally, the company may benefit from strategic alliances with other firms for co-branding initiatives or joint marketing campaigns, which can enhance brand visibility and drive sales. The focus on innovation and responding to consumer trends also positions Compass to capture market share and increase profitability.

Compass Financial Statement Overview

Summary

Compass exhibits strong financial health with impressive revenue and profit growth, efficient cash flow management, and a stable balance sheet. The company shows robust operational efficiency and profitability, although maintaining control over debt levels and enhancing equity proportion could further strengthen its financial position.

Income Statement

Compass has shown impressive revenue growth from 2023 to 2024, with a 35.36% increase. The company maintains a healthy gross profit margin of 33.15% and a solid net profit margin of 3.34%. The EBIT and EBITDA margins of 6.05% and 8.12%, respectively, indicate strong operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

Compass's balance sheet is stable with a debt-to-equity ratio of 0.87, indicating manageable leverage. The return on equity is 20.56%, showcasing efficient utilization of equity capital. An equity ratio of 28.05% suggests a balanced capital structure. While the company maintains a healthy position, slight improvements in equity proportion could enhance stability.

Cash Flow

The company demonstrates strong cash flow management, with a significant operating cash flow to net income ratio of 2.23. Free cash flow has grown by 22.18% from 2023 to 2024, supporting the company's operational and growth activities. The free cash flow to net income ratio of 1.59 further emphasizes positive cash flow generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.03B	42.00B	31.03B	25.51B	17.91B	19.94B
Gross Profit	13.79B	13.93B	1.95B	1.48B	962.00M	3.76B
EBITDA	2.74B	2.76B	2.74B	2.35B	1.28B	915.00M
Net Income	1.14B	1.40B	1.31B	1.24B	357.00M	133.00M
Balance Sheet
Total Assets	19.50B	24.35B	21.48B	18.75B	14.87B	14.73B
Cash, Cash Equivalents and Short-Term Investments	505.47M	623.00M	1.03B	1.99B	1.84B	1.48B
Total Debt	5.51B	5.91B	5.27B	4.88B	4.48B	4.72B
Total Liabilities	14.04B	17.44B	15.18B	12.84B	9.95B	9.92B
Stockholders Equity	5.39B	6.83B	6.26B	5.87B	4.89B	4.79B
Cash Flow
Free Cash Flow	2.05B	2.23B	1.83B	1.31B	943.00M	205.00M
Operating Cash Flow	2.47B	3.13B	2.17B	1.60B	1.17B	914.00M
Investing Cash Flow	-1.65B	-1.26B	-1.23B	-874.00M	-727.00M	-1.10B
Financing Cash Flow	-997.82M	-1.53B	-2.09B	-693.00M	-152.00M	1.28B

Compass Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2523.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPG, the sentiment is Negative. The current price of 2523 is below the 20-day moving average (MA) of 2531.40, below the 50-day MA of 2572.86, and below the 200-day MA of 2592.06, indicating a bearish trend. The MACD of -22.29 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 34.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CPG.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	74 Outperform	£1.48B	8.80	5.81%	―	1.95%	275.56%
MARS	67 Neutral	£248.11M	5.61	-2.83%	―	0.50%	―
CPG	66 Neutral	£42.82B	37.33	21.77%	2.21%	7.67%	-15.09%
SSPG	66 Neutral	£1.33B	-56.67	12.06%	2.22%	11.49%	-406.25%
JDW	64 Neutral	£726.84M	13.07	―	2.20%	3.70%	57.10%
DOM	59 Neutral	£758.94M	9.98	-109.73%	5.60%	-0.67%	2.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Compass Corporate Events

Compass Group Announces Board Appointment of Stefan Bomhard

Compass Group PLC has announced the appointment of Stefan Bomhard to the Board of Flutter Entertainment plc as a Non-executive Director, effective from October 1, 2025. This strategic move is expected to enhance Compass Group’s governance and strengthen its industry connections, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £29.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group PLC Announces Total Voting Rights and Capital Update

Compass Group PLC has announced its total voting rights and capital as of 31 August 2025, with an issued share capital consisting of 1,785,403,977 ordinary shares. Of these, 1,697,430,179 shares are admitted to trading, while 87,973,798 shares are held in treasury with suspended voting rights. The company also sponsors a level 1 American Depositary Receipt Programme, allowing its shares to be traded on the New York Stock Exchange. This announcement provides shareholders with the necessary information to calculate their interests under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2807.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.