Compass Group (STU:XGR2) Operating Income: €3,011 Mil (TTM As of Mar. 2026)

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STU:XGR2 Compass Group PLC STU:XGR2
91 GF Score
Price €26.92
GF Value €34.72
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Compass Group Operating Income?

Compass Group STU:XGR2 -0.66% 91 Operating Income is €3,011 Mil as of Mar. 2026. GuruFocus rates STU:XGR2 with a GF Score™ of 91/100 and a GF Value™ of €34.72 (Modestly Undervalued). The stock has 4 warning signs investors should review.

Compass Group's Operating Income for the six months ended in Mar. 2026 was €1,572 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €3,011 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Compass Group's Operating Income for the six months ended in Mar. 2026 was €1,572 Mil. Compass Group's Revenue for the six months ended in Mar. 2026 was €21,610 Mil. Therefore, Compass Group's Operating Margin % for the quarter that ended in Mar. 2026 was 7.27%.

Good Sign:

Compass Group PLC operating margin is expanding. Margin expansion is usually a good sign.

Compass Group's 5-Year average Growth Rate for Operating Margin % was 16.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Compass Group's annualized ROC % for the quarter that ended in Mar. 2026 was 11.07%. Compass Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 112.18%.


Compass Group  (STU:XGR2) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Compass Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=3143.41 * ( 1 - 26.7% )/( (20673.78 + 20949.435)/ 2 )
=2304.11953/20811.6075
=11.07 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22761.18 - 4534.344 - ( 489.9 - max(0, 9086.58 - 6639.636+489.9))
=20673.78

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=25754.51 - 7866.31 - ( 452.395 - max(0, 10149.91 - 7088.675+452.395))
=20949.435

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Compass Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2949.65/( ( (2509.992 + max(-2983.704, 0)) + (2748.97 + max(-1628.795, 0)) )/ 2 )
=2949.65/( ( 2509.992 + 2748.97 )/ 2 )
=2949.65/2629.481
=112.18 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3893.64 + 698.64 + 333.984) - (4534.344 + 0 + 3375.624)
=-2983.704

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5829.235 + 739.575 + 67.47) - (7866.31 + 0 + 398.765)
=-1628.795

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Compass Group's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=1571.705/21610.295
=7.27 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Compass Group Operating Income Related Terms


Compass Group Operating Income Historical Data

* Premium members only.

The historical data trend for Compass Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Compass Group Operating Income Chart

Compass Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 897.06 1,785.41 2,406.22 2,656.15 2,807.34

Compass Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,330.32 1,353.30 1,485.55 1,439.03 1,571.71
STU:XGR2
91GF Score
Compass Group PLC STU:XGR2
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Compass Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was €3,011 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €3,011 Mil mean?
Compass Group (STU:XGR2) has a Operating Income of €3,011 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Compass Group and its competitors.
Is Compass Group's Operating Income too high?
Compass Group's current Operating Income is €3,011 Mil. Overall, Compass Group has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Compass Group's Operating Income compare to MCD and SBUX?
Compass Group's Operating Income of €3,011 Mil can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Restaurants company?
A good Operating Income depends on the Restaurants industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Compass Group and its competitors. Compass Group's current Operating Income is €3,011 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compass Group stock overvalued right now?
Based on GuruFocus' analysis, Compass Group (STU:XGR2) is currently considered Modestly Undervalued. The stock's GF Value™ is €34.72, compared to a current price of €26.92 — trading 22.5% below its estimated fair value. The current Operating Income is €3,011 Mil. Compass Group's overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Compass Group (STU:XGR2), the current Operating Income is €3,011 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Compass Group (STU:XGR2) Overvalued in 2026?

Based on GuruFocus' analysis, Compass Group stock appears to be undervalued. The current stock price of €26.92 is trading 22.5% below its estimated GF Value™ of €34.72. GuruFocus considers Compass Group to be Modestly Undervalued.

Key valuation signals for STU:XGR2:

  • Operating Income: €3,011 Mil
  • GF Value™: €34.72 vs. price of €26.92 (22.5% below fair value)
  • GF Score™: 91/100 with 4 warning signs

No single metric tells the full story. See the STU:XGR2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Compass Group Business Description

Address Guildford Street, Compass House, Chertsey, Surrey, GBR, KT16 9BQ
Compass Group is the largest foodservice company globally, operating in 30 countries and generating annual sales exceeding $30 billion. Compass' model is to operate on-premises catering facilities, rather than centralized industrial kitchens. Foodservice is Compass' focus and contributes more than 85% of revenue. Compass also has its own group purchasing organization, Foodbuy, which is responsible for over $30 billion in annual spending in the US. The company also provides premium support services to clients.
91GF Score

Get the complete analysis for STU:XGR2

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€26.92
Price
€34.72
GF Value