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Compass GroupSTU:XGR2 +0.28%94 Return-on-Tangible-Asset is 14.02% as of Mar. 2026, which is 11% above its 10-year median of 12.61. GuruFocus rates STU:XGR2 with a GF Score™ of 94/100 and a GF Value™ of €25.89 (Fairly Valued). The stock has 4 warning signs investors should review. Among 365 Restaurants companies, Compass Group ranks better than 90.96% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Compass Group's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,849 Mil. Compass Group's average total tangible assets for the quarter that ended in Mar. 2026 was €13,189 Mil. Therefore, Compass Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 14.02%.
The historical rank and industry rank for Compass Group's Return-on-Tangible-Asset or its related term are showing as below:
STU:XGR2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.73 Med: 12.61 Max: 20.54
Current: 13.53
During the past 13 years, Compass Group's highest Return-on-Tangible-Asset was 20.54%. The lowest was 1.73%. And the median was 12.61%.
STU:XGR2's Return-on-Tangible-Asset is ranked better than 90.96% of 365
companies
in the Restaurants industry
Industry Median: 2.37
vs STU:XGR2: 13.53
Compass Group (STU:XGR2) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Compass Group Return-on-Tangible-Asset Related Terms
Compass Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Compass Group's Return-on-Tangible-Asset 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.
STU:XGR2 vs MCD, SBUX, YUM: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, Compass Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Compass Group Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Compass Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Compass Group's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 14.02% mean?
Compass Group (STU:XGR2) has a Return-on-Tangible-Asset of 14.02% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Compass Group and its competitors. This is 11% above median its historical median of 12.61. Over the past decade, Compass Group's Return-on-Tangible-Asset has ranged from 1.73 to 20.54. According to the industry distribution chart, Compass Group ranks #33 out of 365 companies in the Restaurants industry, placing it in the top 9%.
Is Compass Group's Return-on-Tangible-Asset too high?
Compass Group's current Return-on-Tangible-Asset of 14.02% is 11% above median its 10-year median of 12.61. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 20.54. The Restaurants industry median Return-on-Tangible-Asset is 2.37. Compass Group's value of 14.02% is 491.6% above this industry median. Based on the distribution chart, Compass Group ranks #33 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Compass Group has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Compass Group's Return-on-Tangible-Asset compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Compass Group ranks #33 out of 365 companies for Return-on-Tangible-Asset. This places Compass Group in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.37. Compass Group's value of 14.02% is 491.6% above this benchmark. Historically, Compass Group's own Return-on-Tangible-Asset has ranged from 1.73 to 20.54 over the past decade. While the company's 10-year median is 12.61 vs. the industry median of 2.37, Compass Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.37, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Compass Group's current Return-on-Tangible-Asset of 14.02% is 491.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Compass Group and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Group's current Return-on-Tangible-Asset is 14.02%, which is 11% above median its own 10-year median of 12.61. 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 Fairly Valued. The stock's GF Value™ is €25.89, compared to a current price of €28.58 — trading 10.4% above its estimated fair value. The current Return-on-Tangible-Asset is 14.02%, which is 11% above median its 10-year median of 12.61 and 491.6% above the Restaurants industry median of 2.37. Compass Group's overall GF Score™ is 94/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Compass Group (STU:XGR2), the current Return-on-Tangible-Asset is 14.02% 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 overvalued.
The current stock price of €28.58 is trading 10.4% above its estimated GF Value™ of €25.89.
GuruFocus considers Compass Group to be Fairly Valued.
Key valuation signals for STU:XGR2:
Return-on-Tangible-Asset: 14.02% (11% above median its 10-year median of 12.61)
GF Value™: €25.89 vs. price of €28.58 (10.4% above fair value)
Industry Position: 491.6% above the Restaurants median (#33 of 365)
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 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.
94GF Score
Get the complete analysis for STU:XGR2
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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