Compass Group (LON:CPG) Knows How To Allocate Capital
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 04 2024
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Source: Yahoo Finance
Compass Group's ROCE Performance: Compass Group has a strong Return on Capital Employed (ROCE) of 20%, significantly higher than the industry average of 8.0%, indicating effective reinvestment and profitability over the past five years.
Investment Potential and Risks: While the company shows promising trends for becoming a multi-bagger, it also faces risks due to high current liabilities, which account for 40% of total assets, suggesting reliance on short-term creditors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
