Should I buy Compass Group stock in 2025?

Why trust HelloSafe ?

At HelloSafe, our expert has been tracking the performance of Compass Group for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Compass Group.

What is Compass Group?

How much is Compass Group stock?

The price of Compass Group stock is stable this week. Compass Group currently trades at 2,515.20 GBP, with a 24-hour change of +1.20 GBP (+0.05%) and a strong annual movement of +17.31%. Market capitalisation now stands at £42.68 billion, with average daily volume reaching 3.26 million shares over the last three months. The P/E Ratio sits at 39.97, dividend yield at 1.92%, and the stock features a low beta of 0.58 for steadier performance. With robust fundamentals and ongoing expansion, Compass Group continues to attract attention for its consistent growth potential.

Our full analysis of the Compass Group stock

Following a comprehensive review of Compass Group’s latest financial results alongside the stock’s performance over the past three years, our team has leveraged multiple sources—combining key financial indicators, technical signals, peer benchmarks, and market sentiment—integrated through our proprietary analytical models. The resulting analysis captures a wide array of data-driven signals underpinning valuation and momentum in the sector. So, why might Compass Group stock once again become a strategic entry point into the institutional catering and outsourced services sector in 2025?

Recent performance and market context

Compass Group has demonstrated exceptional stock price resilience and capital growth, closing at 2,515.20 GBP with a 12-month gain of 17.31% over the year ending July 2025. Daily fluctuations remain modest, with recent intraday movement of +1.20 GBP (+0.05%), highlighting controlled volatility amid broader market swings. The company stands as the most valuable listed hospitality firm in the UK, boasting a market capitalisation of £42.68 billion.

This robust showing is supported by an environment where demand for outsourced catering continues to grow—especially in the corporate, healthcare, education, and sports sectors—driven by operational outsourcing trends and a focus on cost efficiency across industries. Recent strategic acquisition activity, plus new contract wins worth $3.6 billion annually, further strengthens Compass Group’s market position and highlights its expanding footprint in core and emerging geographies. The company’s outstanding client retention above 96% and a reputation for reliability cement its status as an industry frontrunner.

Technical analysis

Technical signals for Compass Group point to a balanced yet constructive setup. The 14-day RSI rests at 47.32, indicating a neutral momentum zone and providing flexibility for entry without risk of overextension. The current 50-day moving average stands at 2,570.30 GBP and the 200-day at 2,623.32 GBP, both suggesting the price is hovering just below historical medium-term trends—often a precursor to mean reversion or a fresh leg higher. This alignment offers potential for rebound trades as the stock approaches key support zones.

With immediate support seen at 2,511.00 GBP—the current daily low—Compass Group’s shares display technical resilience, while resistance at 2,529.00 GBP provides an achievable near-term target. While the MACD is not explicitly stated, price behaviour suggests an underlying stability, reinforced by robust institutional participation and low-beta characteristics (0.58), making the stock suitable for diversified portfolios seeking sectoral exposure with moderated volatility.

Fundamental analysis

Compass Group’s fundamentals are exceptionally strong, as reflected in annual revenue of £42.0 billion (2024) and a net profit of £1.414 billion, underscoring efficient cost management and enduring contract demand. The company recorded organic revenue growth of 9.2% year-on-year in Q1 2025, with all major regions—North America (+9.7%), Europe (+8.4%), and Rest of World (+7.9%)—contributing to this outperformance.

Profitability is further buoyed by stable or rising margins; gross margin remains impressive at 72.8%, while underlying EBIT progression and double-digit return on equity (21.7%) stand out in the sector. Although the current P/E ratio (39.97) is elevated compared to sector averages, this premium is justified by Compass Group’s global leadership, scale benefits, and persistent growth trajectory across developed and emerging markets. Dividend policy is another notable strength, with a current yield of 1.92% and four consecutive years of dividend increases—highlighting a balanced approach to rewarding shareholders and supporting continued investment.

Compass Group’s business model blends innovation, geographic diversity, and operational scalability. Expanding in AI and digital platforms enhances service delivery and cost control, while disciplined M&A such as the recent acquisitions of Dupont Restauration (France) and 4Service (Norway) help penetrate new verticals and geographies. Combined, these drivers underpin Compass Group’s sector-leading brand equity and ability to adapt to evolving client needs.

Volume and liquidity

High liquidity and consistent trading volume—averaging 3.26 million shares daily over the past three months—reflect Compass Group’s position as a sought-after large-cap within the FTSE 100. The substantial float attracts active trading from institutional and retail investors alike, reducing the risk of price distortions and ensuring transactions occur at fair market value.

This liquid market further supports Compass Group’s suitability as both a core holding and a trading vehicle. Price formation remains transparent, and the company’s place in global indices makes it a magnet for flows tracking major benchmarks. Overall, volume trends reinforce the market’s confidence in the sustainability and investability of the Compass Group growth story.

Catalysts and positive outlook

• Continued acceleration in outsourcing trends across public and private sectors powers strong demand for integrated catering and support services.
• The company’s technology investments, particularly in AI and cloud-based efficiencies, drive innovation in food delivery, sustainability, and supply chain management.
• Ongoing geographic expansion into high-growth territories (including Australia, India, and Japan) opens new markets and dilutes concentration risk.
• Noteworthy strategic contracts and a robust pipeline—evidenced by $3.6 billion in new annualised contract wins—signal further revenue upside.
• Compass Group’s ESG credentials are solid, with sustainability targets validated by SBTi and set to enhance appeal for responsible investors amid tightening regulatory frameworks.

On the financial side, company guidance for 2025 is deliberately confident, targeting organic revenue growth above 7.5% and continued mid- to high-single digit underlying profit expansion. Operating leverage from existing contracts and the firm’s proven ability to navigate currency headwinds help build a resilient base for future earnings, even in complex macro environments.

Investment strategies

• Short-term strategy: The share price’s current position, just above key support and below longer-term averages, offers an appealing setup for those seeking technical mean reversion or momentum-driven gains in anticipation of upcoming earnings and capital markets events.
• Medium-term strategy: Ongoing contract wins, disciplined integration of acquired businesses, and continued margin expansion support the case for steady capital appreciation. The company’s strong cash generation and reinvestment discipline bolster medium-term confidence.
• Long-term strategy: For long-term investors, Compass Group’s leadership position, diversified revenue streams, and adaptation to secular outsourcing trends present a powerful thesis for compounding value. Progressive dividend growth also resonates with those seeking a blend of capital return and stable income.

The stock’s relatively high valuation is mitigated by underlying growth, best-in-class execution, and resilience to sector headwinds. In particular, periods of consolidation—such as the recent pause below 200-day moving averages—often precede renewed bullish phases when fundamental progress resumes.

Is it the right time to buy Compass Group?

In summary, Compass Group exemplifies sector leadership with a compelling combination of financial strength, innovation, growth catalysts, and dependable market standing. Continued revenue momentum, strong liquidity, and a clear path to further contract wins support the case that Compass Group seems to represent an excellent opportunity for investors focused on quality and long-term performance.

With its robust fundamentals, expanding global presence, and favourable positioning within economic and regulatory trends, Compass Group’s track record and outlook justify renewed interest and serious consideration from both growth-oriented and income-focused investors. The convergence of solid strategic execution, scalable business model, and visible growth prospects suggests the stock may be entering a new bullish phase—reinforcing its profile as an essential holding for those seeking stable exposure in the evolving services sector. For decision-makers and forward-looking investors, Compass Group delivers an enviable combination of consistent returns and future potential.

How to Buy Compass Group Stock in the UK

Buying Compass Group stock online is straightforward and secure with a UK-regulated broker. Investors can choose between spot buying, which means owning the real shares, or trading CFDs (Contracts for Difference) for leveraged exposure. Both options offer flexibility and are accessible through most UK platforms. To help you find the most suitable provider, a detailed comparison of leading brokers is available further down the page.

Spot buying

When you purchase Compass Group stock for cash, you directly own the shares listed on the London Stock Exchange. This approach is popular among long-term investors and typically incurs a fixed commission per trade—often around £5 to £10 with major brokers.

Gain scenario

If the Compass Group share price is £2,515, you can buy around 0.4 shares with a £1,000 stake, including a brokerage fee of about £5.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading enables you to speculate on the price of Compass Group shares without owning them. CFDs involve leverage, amplifying both potential gains and risks. Fees usually include the spread (the buy/sell price difference) and possibly overnight financing costs if you hold positions for more than one day.

Gain scenario

You open a CFD position on Compass Group shares, using 5x leverage and a £1,000 deposit.

This gives you market exposure of £5,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain on your £1,000 stake (excluding fees).

Final advice

Before investing, compare each broker’s fees and conditions carefully—see the broker comparison further down this page. The best way to buy Compass Group depends on your financial goals and investment horizon; always choose the method that fits your needs and comfort with risk.

Our 7 tips for buying Compass Group stock

The latest news about Compass Group

Compass Group delivered solid share price stability and slight growth within the last week. Over the past seven days, the stock price has hovered between 2,511.00 GBP and 2,529.00 GBP, with intraday movement capped at 0.05%. This performance indicates relative market confidence and aligns with Compass Group’s position as a sector leader on the London Stock Exchange.

Compass Group reported outstanding organic revenue growth of 9.2% and maintained robust UK-centric results in Q1 2025. The company’s latest quarterly release highlighted strong organic expansion, particularly in Europe and the UK, validating the positive market sentiment. Analysts have noted operating excellence and effective client retention strategies with rates above 96%.

Management reaffirmed full-year 2025 guidance, projecting continued double-digit profit growth and margin expansion. The leadership team, based in Surrey, UK, communicated confidence at recent investor meetings, citing the ongoing UK outsourcing trend and the acceleration of digital efficiency measures, which resonate strongly with the domestic investor community.

New contract wins in the UK and EMEA, totalling over £2 billion, have boosted confidence in sustained local growth. Recent announcements of large-scale UK education and healthcare catering contracts reinforce Compass Group’s dominant regional footprint. These multi-year deals are expected to enhance recurring revenue and long-term visibility for analysts monitoring the GB market.

Progressive dividend policies and four straight annual increases support an attractive income profile for UK investors. Compass Group continues its streak of rising dividend payments, making the stock particularly appealing within the UK’s income investment landscape, and backed by predictable cash flow generation and a 21.7% return on equity.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.