COMPASS GROUP Stock Technical & Financial Analysis 2023

Compass Group PLC provides food and support services to various sectors worldwide, including business and industry, healthcare, education, sports and leisure, defense, and offshore. The company is traded on the London Stock Exchange (LON: CPG) and is listed on the FTSE 100 Index

COMPASS GROUP Stock – Financials.

Compass Group PLC, the world’s leading food service company, reports its trading results for the third quarter of fiscal year 2023.

CPG delivered a robust performance in the third quarter, with organic revenue growing 15%, even as it faced tough comparisons with the prior year when all sectors reopened.

Organic revenue for the year to date grew 21%, driven by outstanding client retention of 96.7%, balanced net new business growth of 5%, appropriate pricing of 7%, and strong like-for-like volume growth of 9%. The Group spent a net amount of £272 million on acquisitions and disposals in the year to date.

The company has completed £250 Million of the £750 Million share buyback program that we announced at our half-year results in May 2023. The company will finish the rest of the program by the time we report our full-year results. Since May 2022, CPG has announced a total share buyback of £1.5 Billion.

2023 Outlook

The company shared its outlook for the rest of the year and confirmed its guidance for the full year 2023. Operating profit is expected to grow by around 30% on a constant-currency basis, driven by organic revenue growth of about 18% and an underlying operating margin between 6.7% and 6.8%. In the long term, it saw growth opportunities that would support mid-to-high single-digit organic growth and a return to its historical margin, resulting in profit growth above revenue growth. With its proven value creation model, CPG would continue to reward its shareholders with compounding returns over the long term.

COMPASS GROUP Stock Technical Analysis

COMPASS GROUP stock price trend is not clear because the stock price is trading below the 50-day simple moving average (SMA) but above the 200-day simple moving average (SMA), indicating bullish momentum. The moving average convergence divergence (MACD) indicator is below the zero line, and the signal line has crossed below the MACD line, suggesting a possible bearish reversal. The relative strength index (RSI) is in negative territory, and it is declining, indicating a loss of bullish strength.

Summary

CPG stock reported decent results for the third quarter, with decent growth, and expects similar results for the rest of the year. However, technical analysis indicates a downturn. The major indicators like RSI, MACD, and moving averages are negative about the stock.

Technical Levels

Support Level – The current support level is £1972.
Resistance Level – The current resistance level is £2167.

Disclaimer

This article is only for information and education purposes. Do not use this information as financial or trading advice. Trading and investing have financial risks. Before making any investment or trading decision, please think about your risk tolerance and situation.