Compass Group PLC (CPG.L) stock analysis

In our weekly check, Compass Group PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3.

About Compass Group PLC

Compass Group PLC is a Consumer Cyclical company (Restaurants) based in the United Kingdom, listed on LSE as CPG.L.

What our checks show for CPG.L

Red flags

• Analysts expect revenue to shrink about 2.5% a year.
• The net margin is only 4.1%: little room if costs rise.
• Recovering from its deepest fall took about 3.1 years.

Warning signs

• Net debt is 1.4x a year of EBITDA (debt/equity 1.15). That limits room in a downturn and raises refinancing risk.
• The stock has fallen as much as 53% from a peak. Would you have held through that?

Strengths

• The net margin rose by 2.1 points over 5 years, to 4.1%.
• The gross margin is 6.6% and has risen by 1.3 points: pricing power is holding.
• Operating cash flow is 1.84x net profit: the profit arrives as real cash.
• Revenue grew 23% a year over the last 3 years.
• Earnings per share grew 16.3% a year over the last 3 years.
• Net profit grew 20% a year over the last 3 years.

Next earnings report: 2026-11-24

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Questions

What grade does Compass Group PLC (CPG.L) have?

In our weekly check, Compass Group PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CPG.L stock?

This week's biggest flags for Compass Group PLC: Weak revenue forecast, Thin margins, Slow recovery after falls. In total 5 of 25 checks show a warning or a red flag.

What does Compass Group PLC do?

Compass Group PLC is a Consumer Cyclical company (Restaurants) based in the United Kingdom, listed on LSE as CPG.L.

When does Compass Group PLC report earnings next?

The next earnings report is expected on 2026-11-24. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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