SSP Group plc (SSPG) AI Stock Analysis

• Market Cap: £1.25B
• Dividend Yield: 2.32%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 45.5
• Beta (1Y): 1.29
• Revenue Growth: 14.07%
• EPS Growth: 236.27%
• Country: UK
• Employees: 49,000
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Restaurants
• EPS (TTM): 0.03
• Shares Outstanding: 800,726,200
• 10 Day Avg. Volume: 2,288,065
• 30 Day Avg. Volume: 2,009,506
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: £226.25
• Price Target Upside: 45.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

SSP Group plc's stock is supported by strong financial performance, particularly in revenue growth and cash flow stability. However, high leverage poses a risk that requires attention. Technical indicators show mixed signals, with caution advised due to potential overbought conditions. The high P/E ratio indicates a richly valued stock, which could limit upside potential unless earnings grow significantly.

Positive Factors

Market Expansion

The potential valuation catalyst of the JV in India seeking an Indian Stock Exchange listing could boost the stock's attractiveness.

Sales Growth

Ongoing momentum with +6% LFL sales growth, +5% from contract gains and +5% from acquisitions highlights positive performance.

Valuation

SSP's valuation is at a 50% discount to the pre-COVID P/E multiple, suggesting potential for share price growth.

Negative Factors

Earnings

EPS falls -8% / -10% / -10% for FY24E / 25E / 26E mainly due to interest, tax, and minority factors, impacting financial performance.

Earnings Trajectory

A positive inflection in the forecast EPS trajectory is likely required to drive the share price.

SSP Group plc Business Overview & Revenue Model

Company Description

SSP Group plc (SSPG) is a leading operator of food and beverage outlets in travel locations, including airports, train stations, and motorway service areas. The company operates globally, with a strong presence in Europe, Asia Pacific, and North America, and offers a diverse portfolio of well-known brands and local concepts tailored to specific markets. SSP Group plc focuses on providing high-quality food and beverage services to travelers, enhancing their travel experience.

How the Company Makes Money

SSP Group plc generates revenue primarily through the operation of its food and beverage outlets located in high-traffic travel environments. The company earns money by selling food and beverages to travelers, capitalizing on the steady flow of potential customers in airports, train stations, and service areas. SSP's revenue streams are enhanced by its strategic partnerships with major travel operators and landlords, which allow it to secure prime locations for its outlets. Additionally, the company benefits from operating a mix of proprietary and franchised brands, as well as tailoring its offerings to meet regional tastes and preferences, thereby maximizing customer engagement and sales potential.

SSP Group plc Financial Statement Overview

Summary

SSP Group plc shows a strong recovery trajectory with significant revenue growth and operational efficiency improvements. The company's financials are marked by a high debt-to-equity ratio, requiring careful debt management. Cash flows remain solid, supporting operations and growth. Continued focus on enhancing net profit margins and managing leverage is crucial for sustainable growth.

Income Statement

SSP Group plc shows strong revenue growth with a 14% increase from 2023 to 2024, indicating a robust recovery post-pandemic. The gross profit margin is healthy at 47.12%, and the EBITDA margin improved to 17.70%, reflecting operational efficiency. Net profit margin is modest at 0.80%, with net income rising significantly. However, the company should focus on further improving net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 8.52, indicating significant leverage, which could pose risks if interest rates rise or earnings falter. Return on equity improved to 12.06%, demonstrating effective use of equity to generate profits. The equity ratio is fairly low at 7.16%, suggesting reliance on external financing.

Cash Flow

Operating cash flow is robust, with an impressive ratio of 20.68 when compared to net income, highlighting strong cash generation from operations. Free cash flow increased by 14.04%, supporting reinvestment and debt management. The free cash flow to net income ratio is healthy at 9.83, indicating stable cash conversion.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.43B	3.01B	2.19B	834.20M	1.43B
	Gross Profit
1.62B	1.25B	606.80M	-101.90M	56.10M
	EBIT
205.90M	166.80M	-7.30M	-454.90M	-423.90M
	EBITDA
607.50M	496.20M	369.90M	-105.80M	58.00M
	Net Income Common Stockholders
27.40M	8.10M	-10.20M	-357.30M	-375.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
254.80M	303.30M	543.60M	773.60M	185.00M
	Total Assets
3.17B	2.90B	2.83B	3.18B	2.92B
	Total Debt
1.94B	1.72B	1.69B	2.25B	2.23B
	Net Debt
1.68B	1.42B	1.15B	1.48B	2.04B
	Total Liabilities
2.79B	2.58B	2.52B	2.87B	2.72B
	Stockholders Equity
227.20M	226.20M	225.00M	240.30M	130.10M
Cash Flow		Free Cash Flow
269.40M	236.20M	236.40M	25.00M	-151.20M
	Operating Cash Flow
566.50M	478.70M	396.00M	99.60M	-13.60M
	Investing Cash Flow
-413.90M	-264.90M	-150.30M	-69.90M	-161.00M
	Financing Cash Flow
-187.00M	-440.70M	-490.30M	564.10M	131.50M

SSP Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 155.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSPG, the sentiment is Neutral. The current price of 155.9 is above the 20-day moving average (MA) of 143.16, above the 50-day MA of 153.96, and below the 200-day MA of 164.19, indicating a neutral trend. The MACD of -2.21 indicates Negative momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SSPG.

SSP Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	79 Outperform	£1.53B	10.29	6.35%	―	4.27%	―
CPG	75 Outperform	£43.31B	39.28	21.72%	1.90%	6.81%	-14.09%
SSPG	73 Outperform	£1.25B	45.45	12.09%	2.32%	14.07%	236.27%
JDW	66 Neutral	£745.30M	13.02	16.38%	1.78%	3.70%	57.10%
Sector *	61 Neutral	$6.66B	11.71	2.96%	4.01%	2.64%	-20.91%
WINE	54 Neutral	£56.24M	―	-20.11%	―	-15.67%	45.17%

SSP Group plc Corporate Events

SSP Group Announces Change in Major Holdings

SSP Group plc has announced a change in the nature of its major holdings, with HSBC Holdings plc now holding a slightly reduced percentage of voting rights in the company. The total voting rights held by HSBC have decreased from 9.205% to 9.092%, reflecting a minor adjustment in their investment position. This change in holdings could have implications for SSP Group’s shareholder dynamics and may influence future decision-making processes within the company.

Spark’s Take on GB:SSPG Stock

According to Spark, TipRanks’ AI Analyst, GB:SSPG is a Outperform.

SSP Group plc’s solid financial performance and positive corporate developments support its stock score. However, technical indicators reflect bearish trends, and the high P/E ratio suggests overvaluation, necessitating caution. Strengths in revenue growth and strategic initiatives are balanced by debt concerns and valuation challenges.

To see Spark’s full report on GB:SSPG stock, click here.

SSP Group CEO Engages in Share Transaction Under LTIP

SSP Group plc announced a transaction involving its Group CEO, Patrick Coveney, who acquired shares under the company’s Long Term Incentive Plan (LTIP) and subsequently sold a portion to cover tax liabilities. This transaction reflects the company’s ongoing commitment to aligning executive compensation with long-term performance, potentially impacting stakeholder perceptions and reinforcing the CEO’s vested interest in the company’s success.

Spark’s Take on GB:SSPG Stock

According to Spark, TipRanks’ AI Analyst, GB:SSPG is a Neutral.

SSP Group plc’s overall stock score of 59 reflects a blend of strong financial recovery and positive corporate developments. However, technical indicators suggest bearish momentum and potential overvaluation. Investors should consider the high leverage and focus on net profitability improvements for long-term growth.

To see Spark’s full report on GB:SSPG stock, click here.

SSP Group Executives Acquire Shares Under UK Incentive Plan

SSP Group plc has announced that several of its managerial personnel have acquired ordinary shares under the company’s UK Share Incentive Plan (UK SIP). The transactions, which involved both the purchase of Partnership Shares and the allocation of Matching Shares, were conducted at a price of £1.3919 per share for the Partnership Shares, with the Matching Shares awarded at no cost. This move is part of the company’s broader strategy to align managerial interests with shareholders and enhance employee engagement through share ownership. The transactions were conducted on the London Stock Exchange and are in compliance with the UK Market Abuse Regulation.

Spark’s Take on GB:SSPG Stock

According to Spark, TipRanks’ AI Analyst, GB:SSPG is a Neutral.

SSP Group plc’s overall stock score of 59 reflects a blend of strong financial recovery and positive corporate developments. However, technical indicators suggest bearish momentum and potential overvaluation. Investors should consider the high leverage and focus on net profitability improvements for long-term growth.

To see Spark’s full report on GB:SSPG stock, click here.

SSP Group CEO Asia Pacific Exercises Share Award

SSP Group plc announced a transaction involving Jonathan Robinson, CEO Asia Pacific, who exercised a Restricted Share Award under the company’s Long Term Incentive Plan. This transaction, involving 37,187 ordinary shares at a price of £1.4748 each, was conducted on the London Stock Exchange and reflects the company’s ongoing commitment to rewarding its management team, potentially impacting its market perception and stakeholder confidence.

Spark’s Take on GB:SSPG Stock

According to Spark, TipRanks’ AI Analyst, GB:SSPG is a Neutral.

SSP Group plc’s overall stock score of 59 reflects a blend of strong financial recovery and positive corporate developments. However, technical indicators suggest bearish momentum and potential overvaluation. Investors should consider the high leverage and focus on net profitability improvements for long-term growth.

To see Spark’s full report on GB:SSPG stock, click here.

SSP Group PLC Announces Transfer of Investment Management Activities

SSP Group PLC, a UK-based company, announced a significant change in its investment management activities. Parvus Asset Management Europe Limited has transferred its entire investment management operations to Parvus Asset Management Jersey Limited, effective March 31, 2025. This transfer results in Parvus Asset Management Jersey Limited holding 10.669237% of voting rights in SSP Group PLC, marking a notable shift in the company’s shareholder structure. This change is expected to impact the company’s operations and stakeholder dynamics, as Parvus Asset Management Jersey Limited now has the authority to vote on behalf of various funds and managed accounts.

SSP Group Announces Transfer of Investment Management Activities

SSP Group plc announced a change in the management of its investment activities, with Parvus Asset Management Europe Limited transferring its entire investment management activity to Parvus Asset Management Jersey Limited as of March 31, 2025. This transfer indicates a strategic shift in the management of SSP Group’s investment operations, potentially impacting its financial strategies and stakeholder relations.

Parvus Asset Management Increases Stake in SSP Group PLC

SSP Group PLC, a UK-based company, has announced a significant change in its shareholder structure. Parvus Asset Management Europe Limited has increased its voting rights in SSP Group to 10.23% from a previous 5.19%, following the acquisition of financial instruments. This change in holdings could potentially impact SSP Group’s strategic decisions and influence its market positioning, as Parvus Asset Management now holds a substantial influence over the company’s voting rights.

SSP Group Announces Total Voting Rights Update

SSP Group plc has announced its total voting rights as of December 31, 2024, with an issued share capital consisting of 800,989,695 ordinary shares, out of which 263,499 are held in treasury. This results in a total of 800,726,196 voting rights, which shareholders and others with notification obligations can use to determine changes in their interest in the company under the FCA’s Disclosure and Transparency Rules.

SSP Group Executives Acquire Shares Under Incentive Plan

SSP Group plc announced that several key executives, including the Deputy Group CEO & CFO, the CEO for UK & Ireland, and the Group Chief Operating Officer, have acquired ordinary shares through the company’s UK Share Incentive Plan. This plan, which is available to all UK employees meeting certain conditions, aims to align the interests of management and employees with those of shareholders, thereby potentially enhancing company performance and stakeholder value.