Compass Group Plc Stock Buy Hold or Sell Recommendation

CMPGY Stock  USD 29.17  0.34  1.18%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Compass Group PLC is 'Hold'. Macroaxis provides Compass Group buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CMPGY positions. The advice algorithm takes into account all of Compass Group's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Compass Group's buy or sell advice are summarized below:
Real Value
28.62
Hype Value
29.17
Market Value
29.17
Naive Value
29.64
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Compass Group PLC given historical horizon and risk tolerance towards Compass Group. When Macroaxis issues a 'buy' or 'sell' recommendation for Compass Group PLC, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Compass Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Compass and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Compass Group PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.

Execute Compass Group Buy or Sell Advice

The Compass recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Compass Group PLC. Macroaxis does not own or have any residual interests in Compass Group PLC or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Compass Group's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Compass GroupBuy Compass Group
Hold

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Compass Group PLC has a Risk Adjusted Performance of 0.0776, Jensen Alpha of 0.0808, Total Risk Alpha of (0.10), Sortino Ratio of (0) and Treynor Ratio of 0.37
Our investment recommendation module complements current analysts and expert consensus on Compass Group. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. To make sure Compass Group is not overpriced, please confirm all Compass Group PLC fundamentals, including its revenue, price to earnings to growth, five year return, as well as the relationship between the total debt and retained earnings . Given that Compass Group PLC has a price to sales of 1.60 X, we suggest you to validate Compass Group PLC market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Compass Group Trading Alerts and Improvement Suggestions

The company has accumulated 3.27 B in total debt with debt to equity ratio (D/E) of 0.75, which is about average as compared to similar companies. Compass Group PLC has a current ratio of 0.87, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Compass Group until it has trouble settling it off, either with new capital or with free cash flow. So, Compass Group's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Compass Group PLC sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Compass to invest in growth at high rates of return. When we think about Compass Group's use of debt, we should always consider it together with cash and equity.

Compass Group Returns Distribution Density

The distribution of Compass Group's historical returns is an attempt to chart the uncertainty of Compass Group's future price movements. The chart of the probability distribution of Compass Group daily returns describes the distribution of returns around its average expected value. We use Compass Group PLC price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Compass Group returns is essential to provide solid investment advice for Compass Group.
Mean Return
0.13
Value At Risk
-1.73
Potential Upside
1.43
Standard Deviation
1.00
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Compass Group historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Compass Group Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Compass Group or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Compass Group's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Compass pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.08
β
Beta against NYSE Composite0.33
σ
Overall volatility
1.02
Ir
Information ratio -0.0026

Compass Group Volatility Alert

Compass Group PLC has low volatility with Treynor Ratio of 0.37, Maximum Drawdown of 4.65 and kurtosis of 0.33. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Compass Group's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Compass Group's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Compass Group Fundamentals Vs Peers

Comparing Compass Group's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Compass Group's direct or indirect competition across all of the common fundamentals between Compass Group and the related equities. This way, we can detect undervalued stocks with similar characteristics as Compass Group or determine the pink sheets which would be an excellent addition to an existing portfolio. Peer analysis of Compass Group's fundamental indicators could also be used in its relative valuation, which is a method of valuing Compass Group by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Compass Group to competition
FundamentalsCompass GroupPeer Average
Return On Equity0.21-0.31
Return On Asset0.0589-0.14
Profit Margin0.04 %(1.27) %
Operating Margin0.06 %(5.51) %
Current Valuation44.78 B16.62 B
Shares Outstanding1.75 B571.82 M
Shares Owned By Institutions0.02 %39.21 %
Price To Earning199.64 X28.72 X
Price To Book5.72 X9.51 X
Price To Sales1.60 X11.42 X
Revenue25.51 B9.43 B
Gross Profit1.61 B27.38 B
EBITDA2.09 B3.9 B
Net Income1.46 B570.98 M
Cash And Equivalents1.48 B2.7 B
Cash Per Share0.83 X5.01 X
Total Debt3.27 B5.32 B
Debt To Equity0.75 %48.70 %
Current Ratio0.89 X2.16 X
Book Value Per Share3.34 X1.93 K
Cash Flow From Operations1.6 B971.22 M
Earnings Per Share0.76 X3.12 X
Price To Earnings To Growth0.72 X4.89 X
Target Price25.0
Number Of Employees500 K18.84 K
Beta0.84-0.15
Market Capitalization39.98 B19.03 B
Total Asset18.75 B29.47 B
Retained Earnings(2.51 B)9.33 B
Working Capital(1.15 B)1.48 B
Current Asset3.37 B9.34 B
Current Liabilities4.52 B7.9 B
Z Score8.28.72

Compass Group Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Compass . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Compass Group Buy or Sell Advice

When is the right time to buy or sell Compass Group PLC? Buying financial instruments such as Compass Pink Sheet isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Compass Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Advertising Thematic Idea Now

Advertising
Advertising Theme
Companies specializing in advertising, marketing and advertising services. The Advertising theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Advertising Theme or any other thematic opportunities.
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Check out Compass Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Compass Group PLC information on this page should be used as a complementary analysis to other Compass Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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When running Compass Group's price analysis, check to measure Compass Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Compass Group is operating at the current time. Most of Compass Group's value examination focuses on studying past and present price action to predict the probability of Compass Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Compass Group's price. Additionally, you may evaluate how the addition of Compass Group to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Compass Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Compass Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compass Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.