# Compass Group (CPG.LSE)

Canonical: https://gigainvestors.com/s/CPG.LSE

Analysis as of: 2026-10-16T07:33:52.511Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $32.72 per share; close as of 2026-10-15.

Estimated value: low $9.99 per share, central $11.37 per share, high $13.21 per share. Buy at or below the central value $11.37 per share. Valuation as of 2026-10-16T07:33:52.511Z; scenarios are not confidence intervals.

Expected annual return: 5.4% at the stated quote. About 5.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.07×

- FY2018: 0.07×

- FY2019: 0.07×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.06×

- FY2023: 0.07×

- FY2024: 0.07×

- FY2025: 0.07×

### moat: pass

- ROIC, median of available years: 41.4%

- ROIC, second-lowest year: 20.2%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 32.7%

- Recent gross margin (lower of latest and 3-year median): 33.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 12.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 77.4%

- FY2017: 68.7%

- FY2018: 70.4%

- FY2019: 61.6%

- FY2020: 13.0%

- FY2021: 20.2%

- FY2022: 31.6%

- FY2023: 44.0%

- FY2024: 38.9%

- FY2025: 37.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.7B

- Net income, five-year total: $6.6B

- Return on incremental invested capital: 110.0%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: 1.3 pp

- Working capital / revenue, final three-year average: 3.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.81×

- FY2022: 0.93×

- FY2023: 0.91×

- FY2024: 0.81×

- FY2025: 0.83×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 70.4% vs 38.9%

- Per-share earnings: 0.93 to 0.94 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: $24B

- Cumulative retained earnings: $6.2B

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.1%

- Per-share value change: $0.01

- Per-share value, starting three-year median: $0.93

- Per-share value, ending three-year median: $0.94

- Buybacks concentrated in cheaper years (correlation): 0.62

- Average buyback yield: 0.6%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $5.0B

- Cumulative net income, 10 years: $13B

- ROIC, first three-year median: 70.4%

- ROIC, last three-year median: 38.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.89

- FY2017: $0.93

- FY2018: $0.96

- FY2019: $0.89

- FY2020: $0.10

- FY2021: $0.27

- FY2022: $0.71

- FY2023: $0.94

- FY2024: $0.83

- FY2025: $1.10

### accounting: pass

- Sloan accruals: -5.6%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.80×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.53×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.5%

- FY2017: -4.1%

- FY2018: -6.1%

- FY2019: -6.6%

- FY2020: -4.8%

- FY2021: -5.5%

- FY2022: -1.7%

- FY2023: -2.2%

- FY2024: -7.1%

- FY2025: -5.6%

## Holders

## Price story

Price needs cash profits to grow 14.3% a year for ten years · "Compass Group to Buy Dutch Caterer Vermaat; Raises Guidance" (finance.yahoo.com, Jul 2025) · sales +9.7%

Story as of 2026-10-16T09:59:58.071Z; price observation 2026-10-15.

Price needs cash profits to grow 14.3% a year for ten years

- 2025-07-22: Compass Group to Buy Dutch Caterer Vermaat; Raises Guidance ([finance.yahoo.com](https://finance.yahoo.com/m/e4e9e207-da31-300e-88d4-f99493e94267/compass-group-to-buy-dutch.html))

### Sales · FY2024–2025

sales +9.7%; source https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml; observed 2026-01-08.

- FY2016: $28B 

- FY2017: $29B 

- FY2018: $31B 

- FY2019: $32B 

- FY2020: $25B 

- FY2021: $24B 

- FY2022: $28B 

- FY2023: $38B 

- FY2024: $42B 

- FY2025: $46B 

### Gross margin · FY2025

gross margin 33.4%; source https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml; observed 2026-01-08.

- FY2016: 32.2% 

- FY2017: 33.0% 

- FY2018: 32.9% 

- FY2019: 32.8% 

- FY2020: 31.7% 

- FY2021: 31.5% 

- FY2022: 32.5% 

- FY2023: 32.6% 

- FY2024: 33.2% 

- FY2025: 33.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are USD 46.1 billion.

- Source: https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml (filed 2026-01-08); FY2025: revenue 46070000000; grossProfit 15393000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CPG.LSE: Compass Group PLC provides food and support services in North America and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; insurance brokerage services; and others. It serves business and industry; healthcare and senior living; education; sports and leisure; and defense, offshore, and remote sectors. The company was founded in 1941 and is based in Chertsey, the United Kingdom.

### Why customers stay

Margins ranged from 32.6% to 33.4% during 2023–25; it earns 41.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); FY2023: grossProfit / revenue = 32.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); FY2024: grossProfit / revenue = 33.2%.

- Source: https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml (filed 2026-01-08); FY2025: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); 10-year return on capital observations [[2016,0.7737870699886654],[2017,0.6871399500379105],[2018,0.7043313880862434],[2019,0.6156703290279767],[2020,0.13026833917062858],[2021,0.20169146241007505],[2022,0.3156228131103835],[2023,0.4402697797317976],[2024,0.3885524963721807],[2025,0.37127448653671535]]; median 0.41441113805198915. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 33% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml (filed 2026-01-08); Gross margin observations: [[2021,0.3154456108999183],[2022,0.32518030730619735],[2023,0.32553354261745854]]; range within 2 percentage points.

### Where the cash goes

Reinvests 72.7% of cash earnings; earns over 100% on new investment.

- Source: https://eodhd.com/api/eod/GBPUSD.FOREX (filed 2026-01-08); FY2016: growth capex 0; upkeep 823461726.6242045; owner earnings 1196726384.7133765. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/eod/GBPUSD.FOREX (filed 2026-01-08); FY2017: growth capex 30538231.50237882; upkeep 875584128.4976215; owner earnings 1257288503.5023792. Growth capex / owner earnings = 0.024288961059700832.

- Source: https://eodhd.com/api/eod/GBPUSD.FOREX (filed 2026-01-08); FY2018: growth capex 102634405.38111138; upkeep 988797164.4259629; owner earnings 1257317866.4100509. Growth capex / owner earnings = 0.0816296404616898.

- Source: https://eodhd.com/api/eod/GBPUSD.FOREX (filed 2026-01-08); FY2019: growth capex 0; upkeep 685637465.2715651; owner earnings 1467573553.3674116. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/eod/GBPUSD.FOREX (filed 2026-01-08); FY2020: growth capex 0; upkeep 557286212.3248407; owner earnings 345487460.09554124. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); FY2021: growth capex 0; upkeep 514252722.32; owner earnings 389381956.83799994. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); FY2022: growth capex 0; upkeep 459000000; owner earnings 1156295477.3899999. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); FY2023: growth capex 0; upkeep 580000000; cash acquisitions 340000000; owner earnings 1466400000. Growth capex plus acquisitions / owner earnings = 0.23186033824331698.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); FY2024: growth capex 157000000; upkeep 744000000; cash acquisitions 568000000; owner earnings 1141000000. Growth capex plus acquisitions / owner earnings = 0.635407537248028.

- Source: https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml (filed 2026-01-08); FY2025: growth capex 40000000; upkeep 852000000; cash acquisitions 1091000000; owner earnings 1554800000. Growth capex plus acquisitions / owner earnings = 0.7274247491638796.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Incremental return on capital 1.0995824645863252, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Dividend observations: [[2016,706638436.6878986],[2017,1944044336.0000007],[2018,737490135.9485533],[2019,780120095.4952072],[2020,544533667.420382],[2021,572095366.1341859],[2022,418000000],[2023,648000000],[2024,963000000],[2025,1047000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml (filed 2026-01-08); FY2025: cash repurchases 115000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CPG.LSE SharesStats.PercentInsiders = 0.082 percentage points; cache date 2026-10-16.

### What could break it

The Group’s principal risks, and how these are managed, are described on pages 20 to 24.

- Source: https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml (filed 2026-01-08); The Board has also established processes for identifying emerging risks and horizon scanning for medium- to long-term risks. The Group’s principal risks, and how these are managed, are described on pages 20 to 24. The Board also reviewed the Group’s preliminary budget for the financial year ending 30 September 2026 an stency, and cost predictability.

### What the price says

The price assumes cash profits grow 14.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Ten-year compound average after fade. Initial solved rate 0.1930637315403939. Price 32.72; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $17.81 per share

- 2016-12: $19.18 per share

- 2017-01: $18.36 per share

- 2017-02: $19.38 per share

- 2017-03: $19.54 per share

- 2017-04: $20.89 per share

- 2017-05: $22.25 per share

- 2017-06: $21.08 per share

- 2017-07: $21.25 per share

- 2017-08: $21.34 per share

- 2017-09: $21.26 per share

- 2017-10: $21.84 per share

- 2017-11: $20.11 per share

- 2017-12: $21.50 per share

- 2018-01: $20.98 per share

- 2018-02: $21.50 per share

- 2018-03: $20.41 per share

- 2018-04: $21.48 per share

- 2018-05: $21.48 per share

- 2018-06: $21.16 per share

- 2018-07: $21.53 per share

- 2018-08: $21.58 per share

- 2018-09: $22.30 per share

- 2018-10: $19.57 per share

- 2018-11: $21.45 per share

- 2018-12: $20.94 per share

- 2019-01: $21.39 per share

- 2019-02: $22.17 per share

- 2019-03: $23.55 per share

- 2019-04: $22.54 per share

- 2019-05: $22.57 per share

- 2019-06: $23.91 per share

- 2019-07: $25.33 per share

- 2019-08: $25.38 per share

- 2019-09: $25.73 per share

- 2019-10: $26.52 per share

- 2019-11: $24.46 per share

- 2019-12: $24.78 per share

- 2020-01: $24.56 per share

- 2020-02: $22.04 per share

- 2020-03: $15.64 per share

- 2020-04: $16.66 per share

- 2020-05: $14.59 per share

- 2020-06: $13.69 per share

- 2020-07: $13.78 per share

- 2020-08: $16.30 per share

- 2020-09: $15.04 per share

- 2020-10: $13.64 per share

- 2020-11: $17.65 per share

- 2020-12: $18.58 per share

- 2021-01: $17.98 per share

- 2021-02: $20.38 per share

- 2021-03: $20.09 per share

- 2021-04: $21.93 per share

- 2021-05: $22.81 per share

- 2021-06: $21.06 per share

- 2021-07: $21.24 per share

- 2021-08: $20.64 per share

- 2021-09: $20.46 per share

- 2021-10: $21.39 per share

- 2021-11: $19.47 per share

- 2021-12: $22.28 per share

- 2022-01: $22.37 per share

- 2022-02: $22.65 per share

- 2022-03: $21.67 per share

- 2022-04: $21.21 per share

- 2022-05: $22.48 per share

- 2022-06: $20.38 per share

- 2022-07: $23.31 per share

- 2022-08: $21.67 per share

- 2022-09: $20.16 per share

- 2022-10: $21.29 per share

- 2022-11: $22.36 per share

- 2022-12: $23.11 per share

- 2023-01: $23.84 per share

- 2023-02: $23.16 per share

- 2023-03: $25.18 per share

- 2023-04: $26.20 per share

- 2023-05: $27.33 per share

- 2023-06: $27.77 per share

- 2023-07: $26.05 per share

- 2023-08: $25.33 per share

- 2023-09: $24.41 per share

- 2023-10: $25.22 per share

- 2023-11: $25.43 per share

- 2023-12: $27.32 per share

- 2024-01: $27.64 per share

- 2024-02: $27.47 per share

- 2024-03: $29.32 per share

- 2024-04: $28.03 per share

- 2024-05: $27.90 per share

- 2024-06: $27.31 per share

- 2024-07: $30.76 per share

- 2024-08: $31.58 per share

- 2024-09: $32.04 per share

- 2024-10: $32.59 per share

- 2024-11: $34.16 per share

- 2024-12: $33.40 per share

- 2025-01: $34.67 per share

- 2025-02: $34.93 per share

- 2025-03: $33.03 per share

- 2025-04: $33.77 per share

- 2025-05: $35.16 per share

- 2025-06: $33.84 per share

- 2025-07: $35.33 per share

- 2025-08: $33.94 per share

- 2025-09: $33.98 per share

- 2025-10: $33.17 per share

- 2025-11: $31.41 per share

- 2025-12: $31.83 per share

- 2026-01: $30.19 per share

- 2026-02: $30.73 per share

- 2026-03: $27.46 per share

- 2026-04: $28.25 per share

- 2026-05: $32.17 per share

- 2026-06: $32.30 per share

- 2026-07: $31.71 per share

- 2026-08: $30.65 per share

- 2026-09: $29.48 per share

- 2026-10: $30.99 per share

## Annual estimated value (USD per share)

- FY2020: low $7.46 per share, central $8.38 per share, high $9.61 per share

- FY2021: low $7.11 per share, central $7.94 per share, high $9.04 per share

- FY2022: low $8.11 per share, central $9.10 per share, high $10.42 per share

- FY2023: low $9.51 per share, central $10.79 per share, high $12.51 per share

- FY2024: low $7.35 per share, central $8.36 per share, high $9.71 per share

- FY2025: low $10.01 per share, central $11.39 per share, high $13.23 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138008M6MH9OZ6U2T68/2025-09-30/ESEF/GB/0/2138008M6MH9OZ6U2T68-2025-09-30/reports/2138008M6MH9OZ6U2T68-2025-09-30-T01.xhtml); period 2025-09-30, filed 2026-01-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations