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. XGR2 has only an average score on both its financial health and profitability. XGR2 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
XGR2 had positive earnings in the past year.
In the past year XGR2 had a positive cash flow from operations.
XGR2 had positive earnings in each of the past 5 years.
In the past 5 years XGR2 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.77%, XGR2 is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 12.83%, XGR2 is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XGR2 is in line with the industry average of 11.55%.
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
With a Profit Margin value of 3.34%, XGR2 perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
In the last couple of years the Profit Margin of XGR2 has declined.
Looking at the Operating Margin, with a value of 6.05%, XGR2 is in line with its industry, outperforming 43.64% of the companies in the same industry.
XGR2's Operating Margin has been stable in the last couple of years.
XGR2 has a better Gross Margin (72.66%) than 78.18% of its industry peers.
In the last couple of years the Gross Margin of XGR2 has remained more or less at the same level.
| 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
XGR2 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for XGR2 has been reduced compared to 1 year ago.
XGR2 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, XGR2 has an improved debt to assets ratio.
2.2 Solvency
XGR2 has an Altman-Z score of 4.01. This indicates that XGR2 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.01, XGR2 belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
The Debt to FCF ratio of XGR2 is 3.51, which is a good value as it means it would take XGR2, 3.51 years of fcf income to pay off 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 | 4.01 |
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.
XGR2 has a Current ratio of 0.74. This is in the lower half of the industry: XGR2 underperforms 60.00% of its industry peers.
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.
XGR2 has a worse Quick ratio (0.67) than 61.82% of its industry peers.
| 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 12.83%, 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.
Looking at the last year, XGR2 shows a very strong growth in Revenue. The Revenue has grown by 35.37%.
Measured over the past years, XGR2 shows a quite strong growth in Revenue. The Revenue has been growing by 11.04% on average per year.
EPS 1Y (TTM)12.83%
EPS 3Y59.19%
EPS 5Y6.94%
EPS Q2Q%10.11%
Revenue 1Y (TTM)35.37%
Revenue growth 3Y32.86%
Revenue growth 5Y11.04%
Sales Q2Q%9.24%
3.2 Future
XGR2 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.70% yearly.
Based on estimates for the next years, XGR2 will show a small growth in Revenue. The Revenue will grow by 0.61% on average per year.
EPS Next Y14.07%
EPS Next 2Y12.65%
EPS Next 3Y11.79%
EPS Next 5Y4.7%
Revenue Next Year8.22%
Revenue Next 2Y7.75%
Revenue Next 3Y7.47%
Revenue Next 5Y0.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.96, XGR2 is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of XGR2 indicates a somewhat cheap valuation: XGR2 is cheaper than 65.45% of the companies listed in the same industry.
XGR2 is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.32, which indicates a rather expensive current valuation of XGR2.
65.45% of the companies in the same industry are more expensive than XGR2, based on the Price/Forward Earnings ratio.
XGR2's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XGR2 is on the same level as its industry peers.
XGR2's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.4 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
XGR2's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
XGR2 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)3.17
EPS Next 2Y12.65%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
XGR2 has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, XGR2 pays a bit more dividend than its industry peers.
XGR2's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
XGR2 pays out 68.59% of its income as dividend. This is not a sustainable payout ratio.
The dividend of XGR2 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.59%
EPS Next 2Y12.65%
EPS Next 3Y11.79%
FRA:XGR2 (3/7/2025, 7:00:00 PM)
31.18
-0.33 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.65%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap52.93B
Analysts75.33
Price Target35.07 (12.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.67
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)6.61%
PT rev (3m)9.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 19.32 | ||
| P/S | 1.06 | ||
| P/FCF | 26.4 | ||
| P/OCF | 14.38 | ||
| P/B | 6.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)1.42
EY4.55%
EPS(NY)1.61
Fwd EY5.18%
FCF(TTM)1.18
FCFY3.79%
OCF(TTM)2.17
OCFY6.95%
SpS29.43
BVpS4.78
TBVpS-2.38
PEG (NY)1.56
PEG (5Y)3.17
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 | 1.31 | ||
| Cap/Depr | 123.16% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 9.51 | ||
| Cash Conversion | 84.01% | ||
| Profit Quality | 120.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 4.01 |
F-Score5
WACC8.73%
ROIC/WACC1.47
Cap/Depr(3y)105.97%
Cap/Depr(5y)99.34%
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)12.83%
EPS 3Y59.19%
EPS 5Y6.94%
EPS Q2Q%10.11%
EPS Next Y14.07%
EPS Next 2Y12.65%
EPS Next 3Y11.79%
EPS Next 5Y4.7%
Revenue 1Y (TTM)35.37%
Revenue growth 3Y32.86%
Revenue growth 5Y11.04%
Sales Q2Q%9.24%
Revenue Next Year8.22%
Revenue Next 2Y7.75%
Revenue Next 3Y7.47%
Revenue Next 5Y0.61%
EBIT growth 1Y38.42%
EBIT growth 3Y59.08%
EBIT growth 5Y9.72%
EBIT Next Year50.42%
EBIT Next 3Y11.34%
EBIT Next 5Y10.38%
FCF growth 1Y42.28%
FCF growth 3Y44.48%
FCF growth 5Y8.35%
OCF growth 1Y49.08%
OCF growth 3Y38.18%
OCF growth 5Y9.66%