COMPASS GROUP PLC (XGR2.DE) Stock Fundamental Analysis
FRA:XGR2 - Deutsche Boerse Ag - GB00BD6K4575 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to XGR2. XGR2 was compared to 55 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of XGR2 get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, XGR2 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year XGR2 was profitable.
In the past year XGR2 had a positive cash flow from operations.
XGR2 had positive earnings in each of the past 5 years.
XGR2 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XGR2 has a better Return On Assets (5.77%) than 74.55% of its industry peers.
XGR2's Return On Equity of 20.56% is fine compared to the rest of the industry. XGR2 outperforms 80.00% of its industry peers.
XGR2 has a better Return On Invested Capital (12.83%) than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XGR2 is in line with the industry average of 11.33%.
The 3 year average ROIC (12.27%) for XGR2 is below the current ROIC(12.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 20.56% | ||
| ROIC | 12.83% |
ROA(3y)6.39%
ROA(5y)4.49%
ROE(3y)21.7%
ROE(5y)15.03%
ROIC(3y)12.27%
ROIC(5y)9.04%
1.3 Margins
The Profit Margin of XGR2 (3.34%) is comparable to the rest of the industry.
XGR2's Profit Margin has declined in the last couple of years.
XGR2 has a Operating Margin (6.05%) which is comparable to the rest of the industry.
XGR2's Operating Margin has been stable in the last couple of years.
XGR2 has a Gross Margin of 72.66%. This is in the better half of the industry: XGR2 outperforms 74.55% of its industry peers.
XGR2's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.05% | ||
| PM (TTM) | 3.34% | ||
| GM | 72.66% |
OM growth 3Y19.73%
OM growth 5Y-1.19%
PM growth 3Y18.8%
PM growth 5Y-6.03%
GM growth 3Y-1.02%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so XGR2 is still creating some value.
The number of shares outstanding for XGR2 has been reduced compared to 1 year ago.
Compared to 5 years ago, XGR2 has more shares outstanding
Compared to 1 year ago, XGR2 has an improved debt to assets ratio.
2.2 Solvency
XGR2 has an Altman-Z score of 4.50. This indicates that XGR2 is financially healthy and has little risk of bankruptcy at the moment.
XGR2's Altman-Z score of 4.50 is amongst the best of the industry. XGR2 outperforms 89.09% of its industry peers.
XGR2 has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as XGR2 would need 3.51 years to pay back of all of its debts.
XGR2 has a better Debt to FCF ratio (3.51) than 76.36% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that XGR2 is somewhat dependend on debt financing.
XGR2 has a Debt to Equity ratio of 0.71. This is in the better half of the industry: XGR2 outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 4.5 |
ROIC/WACC1.47
WACC8.73%
2.3 Liquidity
XGR2 has a Current Ratio of 0.74. This is a bad value and indicates that XGR2 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.74, XGR2 perfoms like the industry average, outperforming 41.82% of the companies in the same industry.
XGR2 has a Quick Ratio of 0.74. This is a bad value and indicates that XGR2 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.67, XGR2 is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
XGR2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.70%, which is quite good.
XGR2 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.94% yearly.
XGR2 shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.35%.
XGR2 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.04% yearly.
EPS 1Y (TTM)9.7%
EPS 3Y59.19%
EPS 5Y6.94%
EPS Q2Q%9.32%
Revenue 1Y (TTM)21.35%
Revenue growth 3Y32.86%
Revenue growth 5Y11.04%
Sales Q2Q%8.18%
3.2 Future
The Earnings Per Share is expected to grow by 10.46% on average over the next years. This is quite good.
Based on estimates for the next years, XGR2 will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y13.94%
EPS Next 2Y12.61%
EPS Next 3Y11.78%
EPS Next 5Y10.46%
Revenue Next Year8.26%
Revenue Next 2Y7.82%
Revenue Next 3Y7.49%
Revenue Next 5Y6.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.98 indicates a quite expensive valuation of XGR2.
Based on the Price/Earnings ratio, XGR2 is valued a bit cheaper than 63.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. XGR2 is around the same levels.
With a Price/Forward Earnings ratio of 22.99, XGR2 is valued on the expensive side.
XGR2's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, XGR2 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.98 | ||
| Fwd PE | 22.99 |
4.2 Price Multiples
XGR2's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XGR2 indicates a slightly more expensive valuation: XGR2 is more expensive than 61.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.93 | ||
| EV/EBITDA | 19.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
XGR2 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)4.03
EPS Next 2Y12.61%
EPS Next 3Y11.78%
5. Dividend
5.1 Amount
XGR2 has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.33, XGR2 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, XGR2 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of XGR2 grows each year by 7.92%, which is quite nice.
Dividend Growth(5Y)7.92%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
68.59% of the earnings are spent on dividend by XGR2. This is not a sustainable payout ratio.
The dividend of XGR2 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.59%
EPS Next 2Y12.61%
EPS Next 3Y11.78%
FRA:XGR2 (7/1/2025, 7:00:00 PM)
29.38
+0.22 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.21%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap49.87B
Analysts74.48
Price Target33.37 (13.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.48
Dividend Growth(5Y)7.92%
DP68.59%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.89%
PT rev (3m)-2.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.98 | ||
| Fwd PE | 22.99 | ||
| P/S | 1.4 | ||
| P/FCF | 34.93 | ||
| P/OCF | 19.03 | ||
| P/B | 8.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.56 |
EPS(TTM)1.05
EY3.57%
EPS(NY)1.28
Fwd EY4.35%
FCF(TTM)0.84
FCFY2.86%
OCF(TTM)1.54
OCFY5.25%
SpS20.95
BVpS3.41
TBVpS-1.69
PEG (NY)2.01
PEG (5Y)4.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 20.56% | ||
| ROCE | 17.79% | ||
| ROIC | 12.83% | ||
| ROICexc | 13.29% | ||
| ROICexgc | 51.51% | ||
| OM | 6.05% | ||
| PM (TTM) | 3.34% | ||
| GM | 72.66% | ||
| FCFM | 4.01% |
ROA(3y)6.39%
ROA(5y)4.49%
ROE(3y)21.7%
ROE(5y)15.03%
ROIC(3y)12.27%
ROIC(5y)9.04%
ROICexc(3y)13.85%
ROICexc(5y)10.87%
ROICexgc(3y)61.26%
ROICexgc(5y)N/A
ROCE(3y)17.25%
ROCE(5y)12.72%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-13.01%
ROICexc growth 3Y21.26%
ROICexc growth 5Y-3.92%
OM growth 3Y19.73%
OM growth 5Y-1.19%
PM growth 3Y18.8%
PM growth 5Y-6.03%
GM growth 3Y-1.02%
GM growth 5Y0.32%
F-Score5
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 189.38% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 9.51 | ||
| Cash Conversion | 94.24% | ||
| Profit Quality | 120.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 4.5 |
F-Score5
WACC8.73%
ROIC/WACC1.47
Cap/Depr(3y)128.05%
Cap/Depr(5y)112.59%
Cap/Sales(3y)2.96%
Cap/Sales(5y)3.17%
Profit Quality(3y)97.61%
Profit Quality(5y)110.19%
High Growth Momentum
Growth
EPS 1Y (TTM)9.7%
EPS 3Y59.19%
EPS 5Y6.94%
EPS Q2Q%9.32%
EPS Next Y13.94%
EPS Next 2Y12.61%
EPS Next 3Y11.78%
EPS Next 5Y10.46%
Revenue 1Y (TTM)21.35%
Revenue growth 3Y32.86%
Revenue growth 5Y11.04%
Sales Q2Q%8.18%
Revenue Next Year8.26%
Revenue Next 2Y7.82%
Revenue Next 3Y7.49%
Revenue Next 5Y6.56%
EBIT growth 1Y38.42%
EBIT growth 3Y59.08%
EBIT growth 5Y9.72%
EBIT Next Year53.52%
EBIT Next 3Y21.42%
EBIT Next 5Y16.27%
FCF growth 1Y42.28%
FCF growth 3Y44.48%
FCF growth 5Y8.35%
OCF growth 1Y49.08%
OCF growth 3Y38.18%
OCF growth 5Y9.66%