Compass Group PLC (LSE:CPG) delivered another year of solid growth for the period ending September 2025, reporting a 9.7% uplift in statutory revenue and a 14.7% increase in operating profit. Underlying operating profit advanced 11.7%, supported by 8.7% organic revenue growth and a 10bps improvement in operating margin. The company also secured $3.8 billion in new contracts while maintaining an industry-leading client retention rate of more than 96%. During the year, Compass deployed $1.5 billion in capital expenditure and $1.3 billion on acquisitions—including the European purchase of Vermaat—to broaden its capabilities and geographic reach. The group expects continued earnings momentum, underpinned by organic growth and further acquisition-led expansion.
Financial strength remains the dominant contributor to the stock’s score, reflecting consistent performance and disciplined cash flow management. Even so, technical indicators lean neutral to slightly bearish, and the elevated P/E multiple signals a stretched valuation that tempers sentiment.
More about Compass
Compass Group PLC is a major global player in food services, providing meals and specialised support services across a wide range of client sectors. Operating within a roughly $360 billion market where it holds under 15% share, the company sees substantial room for long-term expansion. Its sector-focused model and global scale allow Compass to pursue first-time outsourcing opportunities and selective acquisitions to further enhance its service offering and competitive position.
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