- Compass Group has raised its forecast for full-year organic revenue to above 8%, an increase from the previous estimate of over 7.5%.
- The company anticipates an adjusted operating profit growth of up to 11% by the end of the fiscal year.
- In the third quarter, Compass Group reported an organic revenue increase of 8.6%.
- North America saw a significant regional organic revenue growth of 9.6% in the third quarter.
- Internationally, organic revenue grew by 6.6% during the same period.
- Compass Group plans to acquire Vermaat for an Enterprise Value of approximately €1.5 billion.
- The 2025 guidance has been updated, now expecting constant currency underlying operating profit growth to approach 11%.
- This growth is supported by organic revenue growth exceeding 8% and continued improvement in profit margins.
- The company’s net new business growth is consistently within the middle of its targeted 4% – 5% range.
- Analyst ratings for the company include 9 buys, 10 holds, and 3 sells.
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Compass on Smartkarma
Analyzing analyst coverage of Compass on Smartkarma reveals a positive outlook as Baptista Research recently initiated coverage with a bullish lean. In their report titled “Compass Group: Initiation of Coverage,” they highlighted the strong performance of Compass Group PLC in the full-year 2024 financial results. The company displayed a 16% increase in operating profit, an 11% growth in organic revenue, and a margin progression of 30 basis points, reaching 7.1%. Additionally, Compass reported a net new business growth of 4.2%, with momentum increasing notably in the second half of the year.
A look at Compass Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Compass Group PLC, a global catering and support services company, has received a range of Smart Scores that indicate its overall outlook in different areas. With scores of 2 for both Value and Dividend, Compass seems to have moderate performance in terms of these factors. However, its scores of 3 for both Growth and Momentum suggest a more positive outlook in terms of potential growth and market momentum. The company’s Resilience score of 2 indicates a moderate level of resilience to market fluctuations.
Looking ahead, Compass Group PLC may have promising long-term prospects, especially in terms of growth and market momentum based on its Smart Scores. While not scoring the highest in all areas, the company’s solid performance in Growth and Momentum could position it well for future success in the global catering and support services industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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