COMPASS GROUP PLC (XGR2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:XGR2 - GB00BD6K4575 - Common Stock
25.93 EUR
+0.15 (+0.58%)
We assign a fundamental rating of 5 out of 10 to XGR2. XGR2 was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. XGR2 scores excellent on profitability, but there are some minor concerns on its financial health. 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
- XGR2 has a Return On Assets of 6.99%. This is in the better half of the industry: XGR2 outperforms 76.67% of its industry peers.
- XGR2's Return On Equity of 24.41% 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 (13.54%) than 78.33% of its industry peers.
- XGR2 had an Average Return On Invested Capital over the past 3 years of 13.49%. This is in line with the industry average of 12.01%.
- The last Return On Invested Capital (13.54%) for XGR2 is above the 3 year average (13.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 24.41% | ||
| ROIC | 13.54% |
ROA(3y)6.74%
ROA(5y)5.71%
ROE(3y)23.52%
ROE(5y)19.36%
ROIC(3y)13.49%
ROIC(5y)10.82%
1.3 Margins
- XGR2's Profit Margin of 4.05% is in line compared to the rest of the industry. XGR2 outperforms 51.67% of its industry peers.
- In the last couple of years the Profit Margin of XGR2 has grown nicely.
- Looking at the Operating Margin, with a value of 6.69%, XGR2 is in line with its industry, outperforming 48.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of XGR2 has grown nicely.
- XGR2's Gross Margin of 73.01% is fine compared to the rest of the industry. XGR2 outperforms 76.67% of its industry peers.
- XGR2's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.69% | ||
| PM (TTM) | 4.05% | ||
| GM | 73.01% |
OM growth 3Y5.27%
OM growth 5Y22.78%
PM growth 3Y-2.41%
PM growth 5Y43.47%
GM growth 3Y0.08%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), XGR2 is creating some value.
- XGR2 has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, XGR2 has less shares outstanding
- Compared to 1 year ago, XGR2 has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.14 indicates that XGR2 is not in any danger for bankruptcy at the moment.
- XGR2's Altman-Z score of 4.14 is fine compared to the rest of the industry. XGR2 outperforms 80.00% of its industry peers.
- XGR2 has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as XGR2 would need 3.53 years to pay back of all of its debts.
- The Debt to FCF ratio of XGR2 (3.53) is better than 70.00% of its industry peers.
- XGR2 has a Debt/Equity ratio of 0.74. This is a neutral value indicating XGR2 is somewhat dependend on debt financing.
- XGR2 has a better Debt to Equity ratio (0.74) than 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.58
WACC8.59%
2.3 Liquidity
- XGR2 has a Current Ratio of 0.73. 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 0.73. This is comparable to the rest of the industry: XGR2 outperforms 43.33% of its industry peers.
- XGR2 has a Quick Ratio of 0.73. 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 0.65, XGR2 is doing worse than 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- XGR2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.84%, which is quite good.
- The Earnings Per Share has been growing by 40.40% on average over the past years. This is a very strong growth
- The Revenue has grown by 9.69% in the past year. This is quite good.
- XGR2 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.23% yearly.
EPS 1Y (TTM)10.84%
EPS 3Y16.98%
EPS 5Y40.4%
EPS Q2Q%12.33%
Revenue 1Y (TTM)9.69%
Revenue growth 3Y21.77%
Revenue growth 5Y18.23%
Sales Q2Q%10.53%
3.2 Future
- Based on estimates for the next years, XGR2 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.65% on average per year.
- XGR2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.88% yearly.
EPS Next Y14.36%
EPS Next 2Y12.33%
EPS Next 3Y11.47%
EPS Next 5Y9.65%
Revenue Next Year10.12%
Revenue Next 2Y8.63%
Revenue Next 3Y7.98%
Revenue Next 5Y7.88%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- XGR2 is valuated rather expensively with a Price/Earnings ratio of 23.15.
- Compared to the rest of the industry, the Price/Earnings ratio of XGR2 indicates a somewhat cheap valuation: XGR2 is cheaper than 68.33% of the companies listed in the same industry.
- XGR2 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- XGR2 is valuated rather expensively with a Price/Forward Earnings ratio of 20.18.
- Based on the Price/Forward Earnings ratio, XGR2 is valued a bit cheaper than 63.33% of the companies in the same industry.
- XGR2 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 20.18 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.08 | ||
| EV/EBITDA | 14.73 |
4.3 Compensation for Growth
- The 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)1.61
PEG (5Y)0.57
EPS Next 2Y12.33%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
- XGR2 has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.36, XGR2 pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, XGR2 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
- On average, the dividend of XGR2 grows each year by 19.47%, which is quite nice.
Dividend Growth(5Y)19.47%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- XGR2 pays out 56.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of XGR2 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.05%
EPS Next 2Y12.33%
EPS Next 3Y11.47%
COMPASS GROUP PLC / XGR2.DE FAQ
What is the fundamental rating for XGR2 stock?
ChartMill assigns a fundamental rating of 5 / 10 to XGR2.DE.
What is the valuation status of COMPASS GROUP PLC (XGR2.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to COMPASS GROUP PLC (XGR2.DE). This can be considered as Fairly Valued.
How profitable is COMPASS GROUP PLC (XGR2.DE) stock?
COMPASS GROUP PLC (XGR2.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for XGR2 stock?
The Price/Earnings (PE) ratio for COMPASS GROUP PLC (XGR2.DE) is 23.15 and the Price/Book (PB) ratio is 6.75.
How financially healthy is COMPASS GROUP PLC?
The financial health rating of COMPASS GROUP PLC (XGR2.DE) is 5 / 10.