| Compass Group PLC (GB00BD6K4575) | |||
25,04 GBXStand (close): 03.07.25 |
 |
||
Nachrichten |
||
| Datum / Uhrzeit | Titel | Bewertung |
| 13.03.25 10:09:05 | Shareholders Are Optimistic That Compass Group (LON:CPG) Will Multiply In Value |  |
| Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So, when we ran our eye over Compass Group's (LON:CPG) trend of ROCE, we really liked what we saw. Understanding Return On Capital Employed (ROCE) If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Compass Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.20 = US$2.9b ÷ (US$24b - US$10b) (Based on the trailing twelve months to September 2024). Therefore, Compass Group has an ROCE of 20%. In absolute terms that's a great return and it's even better than the Hospitality industry average of 8.3%. See our latest analysis for Compass Group LSE:CPG Return on Capital Employed March 13th 2025 In the above chart we have measured Compass Group's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Compass Group . What Does the ROCE Trend For Compass Group Tell Us? Compass Group deserves to be commended in regards to it's returns. The company has employed 47% more capital in the last five years, and the returns on that capital have remained stable at 20%. With returns that high, it's great that the business can continually reinvest its money at such appealing rates of return. If Compass Group can keep this up, we'd be very optimistic about its future. On a side note, Compass Group's current liabilities are still rather high at 41% of total assets. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. Our Take On Compass Group's ROCE In the end, the company has proven it can reinvest it's capital at high rates of returns, which you'll remember is a trait of a multi-bagger. On top of that, the stock has rewarded shareholders with a remarkable 176% return to those who've held over the last five years. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further. Story Continues If you want to continue researching Compass Group, you might be interested to know about the 2 warning signsthat our analysis has discovered. If you'd like to see other companies earning high returns, check out our freelist of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 25.02.25 16:40:10 | BJRI or CMPGY: Which Is the Better Value Stock Right Now? |  |
| Investors interested in Retail - Restaurants stocks are likely familiar with BJ's Restaurants (BJRI) and Compass Group PLC (CMPGY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Currently, BJ's Restaurants has a Zacks Rank of #1 (Strong Buy), while Compass Group PLC has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BJRI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. BJRI currently has a forward P/E ratio of 23.10, while CMPGY has a forward P/E of 26.67. We also note that BJRI has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMPGY currently has a PEG ratio of 2.44. Another notable valuation metric for BJRI is its P/B ratio of 2.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CMPGY has a P/B of 8.65. These are just a few of the metrics contributing to BJRI's Value grade of B and CMPGY's Value grade of D. BJRI stands above CMPGY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BJRI is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Compass Group PLC (CMPGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
||
| 28.01.25 10:30:29 | Compass Group's (LON:CPG) investors will be pleased with their favorable 72% return over the last three years | |
| One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. Just take a look at Compass Group PLC (LON:CPG), which is up 62%, over three years, soundly beating the market return of 1.9% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 29%, including dividends. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. View our latest analysis for Compass Group While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During three years of share price growth, Compass Group achieved compound earnings per share growth of 45% per year. The average annual share price increase of 18% is actually lower than the EPS growth. So one could reasonably conclude that the market has cooled on the stock. You can see how EPS has changed over time in the image below (click on the chart to see the exact values).LSE:CPG Earnings Per Share Growth January 28th 2025 We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Compass Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Compass Group the TSR over the last 3 years was 72%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective It's nice to see that Compass Group shareholders have received a total shareholder return of 29% over the last year. And that does include the dividend. That's better than the annualised return of 9% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Compass Group , and understanding them should be part of your investment process. Story Continues Compass Group is not the only stock that insiders are buying. For those who like to find lesser know companies this freelist of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 30.12.24 06:13:15 | Compass Group PLC's (LON:CPG) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason? | |
| Compass Group's (LON:CPG) stock up by 9.8% over the past three months. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Compass Group's ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital. See our latest analysis for Compass Group How Is ROE Calculated? Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Compass Group is: 20% = US$1.4b ÷ US$6.9b (Based on the trailing twelve months to September 2024). The 'return' is the profit over the last twelve months. So, this means that for every £1 of its shareholder's investments, the company generates a profit of £0.20. What Is The Relationship Between ROE And Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Compass Group's Earnings Growth And 20% ROE To begin with, Compass Group seems to have a respectable ROE. Especially when compared to the industry average of 7.9% the company's ROE looks pretty impressive. This certainly adds some context to Compass Group's exceptional 20% net income growth seen over the past five years. However, there could also be other causes behind this growth. For instance, the company has a low payout ratio or is being managed efficiently. We then performed a comparison between Compass Group's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 25% in the same 5-year period.LSE:CPG Past Earnings Growth December 30th 2024 Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Compass Group's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Story Continues Is Compass Group Making Efficient Use Of Its Profits? The high three-year median payout ratio of 57% (implying that it keeps only 43% of profits) for Compass Group suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders. Besides, Compass Group has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 50%. Still, forecasts suggest that Compass Group's future ROE will rise to 29% even though the the company's payout ratio is not expected to change by much. Conclusion In total, we are pretty happy with Compass Group's performance. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 28.11.24 05:11:53 | Compass Group Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags | |
| Compass Group (LON:CPG) Full Year 2024 Results Key Financial Results Revenue: US$42.0b (up 11% from FY 2023). Net income: US$1.40b (down 12% from FY 2023). Profit margin: 3.3% (down from 4.2% in FY 2023). The decrease in margin was driven by higher expenses. EPS: US$0.82 (down from US$0.92 in FY 2023).LSE:CPG Revenue and Expenses Breakdown November 28th 2024 All figures shown in the chart above are for the trailing 12 month (TTM) period Compass Group Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates by 25%. The primary driver behind last 12 months revenue was the Business & Industry segment contributing a total revenue of US$15.9b (38% of total revenue). Notably, cost of sales worth US$39.2b amounted to 93% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$1.39b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CPG's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Hospitality industry in the United Kingdom. Performance of the British Hospitality industry. The company's shares are up 3.4% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 1 warning sign for Compass Group you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 27.11.24 07:00:57 | Compass Group PLC (CMPGF) (Q4 2024) Earnings Call Highlights: Strong Profit Growth and ... | |
| Operating Profit: Increased by 16% to $3 billion. Organic Revenue Growth: 11% increase. Margin Progression: Improved by 30 basis points to 7.1%. Net New Business: 4.2%, accelerating to 4.8% in the second half. Interest Expense: Increased to $249 million, expected to be around $300 million in fiscal year 2025. Effective Tax Rate: 25.5%. Earnings Per Share (EPS): Increased by 15%. Dividends: Grew by 15% in line with EPS. CapEx: 3.7% of revenue, expected to be around 3.5% going forward. Working Capital Inflow: Approximately $200 million. Net M&A Expenditure: $1 billion. Shareholder Returns: $1.5 billion through dividends and buybacks. Leverage: Ended the year at 1.3 times net debt to EBITDA. Guidance for 2025: High single-digit operating profit growth, organic growth above 7.5%. Warning! GuruFocus has detected 4 Warning Sign with CMPGF. Release Date: November 26, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Compass Group PLC (CMPGF) reported a 16% increase in operating profit and 11% organic revenue growth, with margin progression to 7.1%. The company has exited noncore markets and continues to invest in capabilities, CapEx, and M&A to sustain higher net new business growth. Net new business growth accelerated to 4.8% in the second half, providing strong momentum into 2025. The company has a robust sales pipeline and strong retention, expecting net new business to continue in the 4% to 5% range. Compass Group PLC (CMPGF) is investing in high-quality acquisitions in Europe, such as Dupont Restauration in France and 4Service in Norway, to expand its portfolio and drive growth. Negative Points Interest expenses increased to $249 million due to higher interest rates and debt, with expectations to rise to $300 million in fiscal year 2025. Volume growth moderated to around 2%, and pricing trended lower as the year progressed. The net impact of announced acquisition disposals is expected to reduce profit in fiscal year 2025 by around $30 million. The company faces operational complexities due to allergens, dietary requirements, and sustainability initiatives. There is uncertainty around volume growth, which is economically sensitive and difficult to predict. Q & A Highlights Q: Could you provide insights on the strong net new business growth in Q4 and expectations for the upcoming year? A: Dominic Blakemore, CEO: We achieved a 4.2% net new growth for the full year, with 4.8% in the second half, and a particularly strong Q4. Retention improved throughout the year, reaching above 96% in the second half. We enter 2025 with positive momentum and aim for the higher end of the 4% to 5% range. Volume growth was strong, and we anticipate a slight positive in 2025, driven by our value proposition and technology enhancements. Story Continues Q: Why is there no share buyback despite a strong balance sheet? A: Petros Parras, CFO: We are comfortable with our capital allocation model, which balances investment in the business and shareholder returns. In the first half, we focus more on M&A, with acquisitions like Dupont in France and 4Service in Norway. We will reassess the scope for further buybacks in the second half, considering our leverage position. Q: How might the recent US election impact Compass Group, particularly regarding potential federal government cuts and other policy changes? A: Dominic Blakemore, CEO: Our US business has thrived under various administrations. We have minimal exposure to federal government business, and any policy changes that benefit the domestic economy could present opportunities for us. We are well-positioned to manage any nutritional requirement changes and inflation impacts due to our scale and expertise. Q: Can you elaborate on the margin growth strategy and the impact of recent acquisitions in France and Norway? A: Petros Parras, CFO: We expect consistent margin progression, with faster growth outside North America. The acquisitions in France and Norway enhance our sector presence and offer strong growth potential. These businesses bring unique capabilities and align with our strategy to drive financial returns and leverage economies of scale. Q: What are the expectations for like-for-like growth next year, and how does it compare to competitors? A: Dominic Blakemore, CEO: We anticipate 2% to 3% pricing growth, with inflation around 4%. Volume remains uncertain, but we are optimistic about our initiatives. We aim for mid- to high single-digit growth, which is 50% faster than pre-pandemic levels, driven by our focused portfolio and market opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
||
| 26.11.24 11:06:22 | Trending tickers: Nvidia, Apple, Zoom, Rivian and Halfords | |
| Nvidia (NVDA) Shares in chipmaker Nvidia fell 4% in the previous session, seeing it lose its title as the world's most valuable company, pulling it back into second place behind Apple (AAPL). Monday's fall in shares left Nvidia with a market valuation of $3.3tn (£2.6tn) compared to Apple's $3.5tn. The stock declined following reports that Nvidia executive Jay Puri had met with China's vice commerce minister Wang Shouwen. Read more: FTSE 100 LIVE: Markets on back foot after Trump threatens fresh Mexico, China and Canada tariffs Wang said China welcomed Nvidia's presence and hoped to develop a better business environment for foreign firms, according to reports by Reuters. The meeting comes as US president Joe Biden's administration is set to announce new export restrictions on China, which includes further curbing access to semiconductors. Nvidia's shares were nearly 3% in the red over a five-day period, as the company's closely-watched earnings disappointed on revenue guidance and a decline in gross margins. Apple (AAPL) Apple was also slightly in the red in pre-market trading on Tuesday, as a Financial Times report highlighted the difficulties that the tech company was facing in China with the rollout of its AI model for iPhones and other products. A top Beijing official reportedly warned that foreign companies like Apple would face a "difficult and long process" for approvals unless they partnered with local groups. Read more: Pound, gold and oil prices in focus: commodity and currency check, 26 November Apple CEO Tim Cook arrived in China on Monday and joined more than 20 business leaders in talks with China's premier, according to Bloomberg. This marked Cook's third trip to China this year and was reportedly the first high-level meeting between foreign corporations and a senior Beijing official since Donald Trump's US presidential election victory earlier this month. Trump had already threatened to hike trade tariffs with China in his election campaign and on Monday vowed to impose even deeper tariffs on China after he returns to office in January. NasdaqGS - Delayed Quote•USD (AAPL) Follow View Quote Details 229.98 - +(0.75%) At close: January 17 at 4:00:01 PM EST Advanced Chart Zoom Communications (ZM) Shares in video conferencing provider Zoom were down nearly 6% in pre-market trading on Tuesday, after the company shared a sales forecast that failed to excite investors. Zoom guided to total revenue of between $1.175bn and $1.18bn for the fourth quarter, which was only slightly higher than analyst estimates of $1.17bn, according to Bloomberg. In its third quarter results, released on Monday, Zoom announced that it had changed its name, dropping the "video" from its title to highlight its pivot to an AI-first business. Story Continues Read more: Stocks that are trending today Eric S Yuan, founder and CEO of Zoom, said: “At Zoomtopia we announced major milestones such as AI Companion 2.0 and paid add-ons for AI Companion and industry-specific AI customisation, further cementing our vision to deliver a differentiated AI-first work platform that empowers customers to achieve more than eve." For the three months ended 31 October, Zoom generated total revenue of nearly $1.17bn, which was up 3.6% year-on-year. The company reported net income of $207m, up from $141m in the third quarter last year. NasdaqGS - Delayed Quote•USD (ZM) Follow View Quote Details 78.07 - (-1.72%) At close: January 17 at 4:00:00 PM EST Advanced Chart Rivian Automotive (RIVN) Shares in Rivian surged on Monday, closing the session up 13%, following a Bloomberg report that Tesla said it had reached a "conditional" settlement with its electric vehicle (EV) competitor. Tesla accused Rivian of poaching employees to access proprietary information about its EV tech. According to the report, Tesla said it expected to seek a dismissal of the case by 24 December upon satisfactory completion of the terms. Read more: FCA kicks off crypto regulation roadmap as UK investments surge A spokesperson for Rivian declined to comment, while Tesla had not responded to Yahoo Finance UK's request for comment at the time of writing. Meanwhile, Rivian announced that it had received conditional commitment from the US Department Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) loan program of up to $6.6bn. If finalised, the loan would support the construction of Rivian's next facility in Georgia. NasdaqGS - Delayed Quote•USD (RIVN) Follow View Quote Details 14.21 - (-1.59%) At close: January 17 at 4:00:01 PM EST Advanced Chart Halfords Group (HFD.L) Shares in Halfords soared 13% on Tuesday morning, after the UK cycling and motoring products retailer reported its first half results. Halfords' revenue of £864.8m ($1.08bn) had fallen slightly from the £873.5m reported in the first half last year, the retailer posted underlying profit before tax of £21m, which was also down from £21.3m year-on-year. However, Halfords said it was comfortable with its full-year consensus with "strong performance in H1 underpinning full-year expectations". Read more: UK shop inflation drops but tea and seafood more expensive This offered some relief for investors following Halfords' preliminary trading update in late October, which gave a glimpse into the first-half results, At the time, Graham Stapleton, CEO of Halfords, warned that consumers remained "cautious in their discretionary spending compounded by uncertainty around the contents of the upcoming autumn budget". Dan Coatsworth, investment analyst at AJ Bell, said: "Halfords’ results show a business stuck in the slow lane. Make no mistake, the jump in its share price does not reflect a business in perfect health. This is simply a relief rally that full-year earnings guidance hasn’t changed." Other companies in the news on Tuesday 26 November: Compass (CPG.L) Renew (RNWH.L) AO World (AO.L) Topps Tiles (TPT.L) Londonmetric Property (LMP.L) CrowdStrike (CRWD) Hewlett Packard (HPE) BestBuy (BBY) JM Smucker (SJM) Abercrombie & Fitch (ANF) Macy’s Inc (M) Nordstrom (JWN) Read more: Is Black Friday the best time to buy tech products? Rise in UK borrowing shows Reeves has 'little wiggle room' on spending December UK interest rate cut unlikely despite GDP slowdown Download the Yahoo Finance app, available for Apple and Android. View Comments |
||
| 20.11.24 09:30:28 | With 84% institutional ownership, Compass Group PLC (LON:CPG) is a favorite amongst the big guns | |
| Key Insights Significantly high institutional ownership implies Compass Group's stock price is sensitive to their trading actions A total of 25 investors have a majority stake in the company with 47% ownership Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock Every investor in Compass Group PLC (LON:CPG) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 84% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's delve deeper into each type of owner of Compass Group, beginning with the chart below. View our latest analysis for Compass Group LSE:CPG Ownership Breakdown November 20th 2024 What Does The Institutional Ownership Tell Us About Compass Group? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Compass Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Compass Group's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:CPG Earnings and Revenue Growth November 20th 2024 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Compass Group. Our data shows that BlackRock, Inc. is the largest shareholder with 8.3% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.7% and 4.1% of the stock. On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest. Story Continues Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Compass Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Compass Group PLC insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own UK£16m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. General Public Ownership With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Compass Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Compass Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for Compass Group that you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 11.11.24 16:40:16 | CMPGY or SHAK: Which Is the Better Value Stock Right Now? | |
| Investors interested in stocks from the Retail - Restaurants sector have probably already heard of Compass Group PLC (CMPGY) and Shake Shack (SHAK). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. Both Compass Group PLC and Shake Shack have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors. Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels. The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value. CMPGY currently has a forward P/E ratio of 25, while SHAK has a forward P/E of 161.75. We also note that CMPGY has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SHAK currently has a PEG ratio of 3.01. Another notable valuation metric for CMPGY is its P/B ratio of 8.88. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SHAK has a P/B of 11.65. Based on these metrics and many more, CMPGY holds a Value grade of B, while SHAK has a Value grade of F. Both CMPGY and SHAK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CMPGY is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Compass Group PLC (CMPGY) : Free Stock Analysis Report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research View Comments |
||
| 30.10.24 05:24:12 | Several Insiders Invested In Compass Group Flagging Positive News | |
| Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Compass Group PLC (LON:CPG), that sends out a positive message to the company's shareholders. Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing. See our latest analysis for Compass Group The Last 12 Months Of Insider Transactions At Compass Group In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Arlene Isaacs-Lowe bought UK£61k worth of shares at a price of UK£21.76 per share. We do like to see buying, but this purchase was made at well below the current price of UK£25.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive. While Compass Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!LSE:CPG Insider Trading Volume October 30th 2024 Compass Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this freelist of growing companies with recent insider purchasing, could be just the ticket. Does Compass Group Boast High Insider Ownership? Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.03% of Compass Group shares, worth about UK£15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. So What Does This Data Suggest About Compass Group Insiders? It doesn't really mean much that no insider has traded Compass Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Compass Group and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Compass Group has 1 warning sign and it would be unwise to ignore it. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity and low debt. Story Continues For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
