This FTTE’s stock 100 is higher 150% in the past 10 years. Can it continue?

This page FTSE 100 It has a fitness, rather than look at, when it comes to return. But The campus group (Lese: CPG) can be an interesting thing.

Including division, stock returned over 10% annually between what was more likely than a challenge 10 years ago. I think it’s suitable for investors to take a look at.

Cooking Contract

Compass Group provides services for cooking areas such as hospitals, sports stadiums and schools. In other words – places that would like to not run their dietary activities.

One transparent benefit of this type of business is not particularly the cyclical. Anything that happens with inflation or interest rates, people still need food.

While contest in this field, compass and beneficial than others operators. Specifically, its scale puts it in a better place to discuss providers.

The strong establishment of the customers who are responsible for long term contracts is another benefit. Importantly, I don’t think this will change at times.

Growth

Over the past 10 years, the compass has risen its money from £ 17.4bn to less than £ 32bn. But the leading lead-part of the sharing has never been very good – travel from 54p to 62p.

There is great – and obvious – the reason for this, which is in the village. People who do not go to the offices or live events are wrong with a firm offering cooking.

As a result, the compass took credit and released shares to raise the capital. And despite both of these coming a few years ago, the results are still reflected in the Fulfiller’s income.

That is why stock looks very expensive in price (P / e) a 45-size measure. But if the credit rates and levels of equity is recovering, many should be returned to 29, or there is no further improvement.

Outward

AP / e Ratio of 29 is high – especially at FTSE 100 levels – but I think the compass is an unusually solid business. And its growing hopes look very impressive.

The most obvious strategy of growth includes new contracts. And in its sizes that gives the company the cost benefit, it is in a position to provide competitive prices for opportunities.

Findication also is an important part of how the global develops. Buying existing businesses helping the firm to find a foundation in the new market and can use its benefits in scale to grow.

This strategy can be dangerous – there is a risk of exposure to overdue. But it works very much for the company so far and I expect to continue.

Can the stock continue to rise?

One of the major challenges of compass looks at the present incolation. Both the green synthetic materials and labor costs rises and the company will find a way to work on this.

That is said, I can’t see obstacles of this kind of business that comes greater than the epidemic. This makes me think of the following ten years, will not be difficult.

Because of this, I think the compass has a good opportunity to be one of the best FTSE’s 100 shares in the next ten years and believe investors who have not looked at the look should.