# Compass Group PLC (CPG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price $30.74, market value $52.3 billion.

## Valuation
- **P/E (trailing): 25.8×** (5-yr avg 32.5×, 3-yr avg 23.0×). Compass Group PLC trades at 25.8× trailing earnings, well below its own five-year average of 32.5×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 18.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 6.70**. A PEG of 6.70 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.5×**. Each dollar of revenue is priced at 0.5×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 6.6×**. The shares trade at 6.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 6.8×**. Enterprise value is 6.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 10.9%** (5-yr avg 5.3%). Free cash flow equals 10.9% of the market value, above its five-year average of 5.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.9%**. The inverse of the P/E: 3.9% of the price is earned each year.

## Profitability
- **Gross margin: 49.8%**. Compass Group PLC keeps 49.8% of revenue after the direct cost of what it sells.
- **Operating margin: 6.2%**. 6.2% of revenue is left after running the business.
- **Net margin: 4.1%**. 4.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 25.2%**. 25.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 29.8%**. Return on all capital, debt included, is 29.8%: comfortably above what that capital costs.
- **Return on assets: 13.2%**. Each dollar of assets produces 13.2% of profit.

## Growth
- **Revenue growth (1 yr): -13.8%** (3-yr 23.0%/yr, 5-yr 18.9%/yr). Revenue fell 13.8% over the last year, against 18.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 2.8%** (3-yr 16.3%/yr, 5-yr 68.8%/yr). Earnings per share rose 2.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 31.5%/yr**. Free cash flow has compounded at 31.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.91**. Debt is 0.91 times equity, moderate leverage.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.2×**. Operating profit covers interest 7.2× over, a safe margin.
- **Current ratio: 0.73** (quick 0.65). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 4.11**. A Z-score of 4.11 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.23%** ($0.69 per share, trailing). Compass Group PLC yields 2.23%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 56%** (37% of free cash flow). 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 12.3%/yr** (1-yr 8.6%). The dividend has compounded at 12.3% a year over five years, doubling roughly every 6 years at that pace.
- **Shareholder yield: 2.9%**. Dividends plus net buybacks return 2.9% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (17 analysts). 17 analysts cover Compass Group PLC; the consensus is buy, with an average price target of $38.35 (+25% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 22.2%** (YTD 32.1%, 3-mo -6.6%). The shares are up 22.2% over twelve months including dividends.
- **From 52-week high: -13.8%** (18.2% above the low). Trading 14% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 1.31** (volatility 49%). Beta of 1.31 against the FTSE All-Share: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CPG.L · Page: https://foliofundamentals.com/stocks/cpg.l

Not investment advice.