SSP Group plc (SSPG) AI Stock Analysis

• Market Cap: £1.30B
• Dividend Yield: 2.15%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 47.4
• Beta (1Y): 1.32
• Revenue Growth: 14.07%
• EPS Growth: 236.27%
• Country: UK
• Employees: 49,000
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Restaurants
• EPS (TTM): -0.02
• Shares Outstanding: 800,726,200
• 10 Day Avg. Volume: 1,431,835
• 30 Day Avg. Volume: 1,471,708
• PEG Ratio: -28.70
• Price to Book (P/B): 5.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £230.71
• Price Target Upside: 41.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: 185.00p ▲(13.85%Upside)

SSP Group plc displays strong financial performance with considerable revenue growth and efficient cash flow management. However, significant leverage poses a risk that necessitates careful monitoring. Technical indicators show mixed signals, with potential overbought conditions. The high P/E ratio suggests a richly valued stock, potentially limiting upside unless earnings improve substantially. Corporate events reflect positively on the company, supporting stakeholder confidence.

Positive Factors

Sales Performance

Strong like-for-like sales in APAC, EEME, and UK are offsetting reduced North America passenger numbers.

Valuation Catalyst

The joint venture in India is expected to list on the Indian Stock Exchange, which could act as a potential valuation catalyst.

Negative Factors

Macro Uncertainty

Greater macro uncertainty has been flagged, although full-year guidance is maintained.

North America Performance

Reduced passenger numbers in North America are impacting overall performance.

SSP Group plc Business Overview & Revenue Model

Company Description

SSP Group plc (SSPG) is a leading operator of food and beverage concessions in travel locations such as airports and railway stations worldwide. The company operates a diverse portfolio of international, national, and local brands, catering to a wide range of consumer tastes and preferences. SSP Group's operations span across multiple regions, including the UK, Europe, North America, and Asia Pacific, providing travelers with convenient dining options.

How the Company Makes Money

SSP Group plc generates revenue through the operation of food and beverage outlets in travel locations, primarily airports and railway stations. The company earns money by providing dining services under a variety of brand names, which include both proprietary brands and licensed franchises. Key revenue streams include sales of food and beverages to travelers, as well as income from franchise agreements. Significant factors contributing to SSP Group's earnings include strategic partnerships with global brand operators, location contracts with travel hubs, and the ability to adapt offerings to local tastes and preferences.

SSP Group plc Financial Statement Overview

Summary

SSP Group plc shows a strong recovery trajectory with significant revenue growth and operational efficiency improvements. The company's financials are marked by a high debt-to-equity ratio, requiring careful debt management. Cash flows remain solid, supporting operations and growth. Continued focus on enhancing net profit margins and managing leverage is crucial for sustainable growth.

Income Statement

SSP Group plc shows strong revenue growth with a 14% increase from 2023 to 2024, indicating a robust recovery post-pandemic. The gross profit margin is healthy at 47.12%, and the EBITDA margin improved to 17.70%, reflecting operational efficiency. Net profit margin is modest at 0.80%, with net income rising significantly. However, the company should focus on further improving net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 8.52, indicating significant leverage, which could pose risks if interest rates rise or earnings falter. Return on equity improved to 12.06%, demonstrating effective use of equity to generate profits. The equity ratio is fairly low at 7.16%, suggesting reliance on external financing.

Cash Flow

Operating cash flow is robust, with an impressive ratio of 20.68 when compared to net income, highlighting strong cash generation from operations. Free cash flow increased by 14.04%, supporting reinvestment and debt management. The free cash flow to net income ratio is healthy at 9.83, indicating stable cash conversion.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.21B	3.43B	3.01B	2.19B	834.20M	1.43B
	Gross Profit
992.40M	1.62B	1.25B	606.80M	-101.90M	56.10M
	EBIT
207.30M	205.90M	166.80M	-7.30M	-454.90M	-423.90M
	EBITDA
413.10M	607.50M	496.20M	369.90M	-105.80M	58.00M
	Net Income Common Stockholders
7.60M	27.40M	8.10M	-10.20M	-357.30M	-375.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
166.10M	254.80M	303.30M	543.60M	773.60M	185.00M
	Total Assets
1.63B	3.17B	2.90B	2.83B	3.18B	2.92B
	Total Debt
599.50M	1.94B	1.72B	1.69B	2.25B	2.23B
	Net Debt
433.40M	1.68B	1.42B	1.15B	1.48B	2.04B
	Total Liabilities
1.17B	2.79B	2.58B	2.52B	2.87B	2.72B
	Stockholders Equity
376.30M	227.20M	226.20M	225.00M	240.30M	130.10M
Cash Flow		Free Cash Flow
203.10M	269.40M	236.20M	236.40M	25.00M	-151.20M
	Operating Cash Flow
474.60M	566.50M	478.70M	396.00M	99.60M	-13.60M
	Investing Cash Flow
-369.10M	-413.90M	-264.90M	-150.30M	-69.90M	-161.00M
	Financing Cash Flow
-273.30M	-187.00M	-440.70M	-490.30M	564.10M	131.50M

SSP Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 162.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSPG, the sentiment is Positive. The current price of 162.5 is below the 20-day moving average (MA) of 165.63, above the 50-day MA of 153.78, and above the 200-day MA of 162.50, indicating a neutral trend. The MACD of 2.51 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SSPG.

SSP Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	80 Outperform	£1.68B	10.13	6.90%	―	1.95%	275.56%
FSTA	74 Outperform	£347.52M	18.40	4.58%	2.92%	2.22%	98.79%
JDW	73 Outperform	£794.52M	14.01	16.38%	2.19%	3.70%	57.10%
YNGA	72 Outperform	£531.40M	61.41	1.27%	2.27%	16.73%	-55.22%
SSPG	71 Outperform	£1.30B	47.38	12.09%	2.15%	14.07%	236.27%
MARS	67 Neutral	£257.80M	5.94	10.69%	―	0.50%	―
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%

SSP Group plc Corporate Events

SSP Group Grants Performance Share Award to New CFO Designate

SSP Group plc announced the grant of a Performance Share Award to Geert Verellen, the newly appointed CFO Designate, as part of the company’s Long Term Incentive Plan. The award, which is contingent on meeting specific performance targets over a three-year period, reflects the company’s commitment to aligning managerial incentives with shareholder interests, potentially impacting the company’s operational focus and stakeholder value.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £2.10 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

SSP Group Reports Strong Half-Year Results and Maintains Full-Year Guidance

SSP Group plc reported its half-year financial results, showing a 9% increase in revenue to £1.7 billion and a 20% rise in operating profit to £45 million. Despite a statutory loss per share of 7.7p due to non-cash IT transformation costs and impairments, the company maintained its full-year guidance, highlighting strong sales growth in regions like APAC & EEME. The company is implementing a cost reduction program and capital expenditure tightening to enhance profitability and cash generation, with plans for a potential share buyback program later in the year.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £240.00 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

SSP Group plc Announces Managerial Share Acquisitions Under UK SIP

SSP Group plc announced that several of its managerial personnel acquired shares under the company’s UK Share Incentive Plan (UK SIP). This plan, which is available to all UK employees meeting certain conditions, allows participants to purchase shares and receive matching shares at no cost. The transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to employee investment and engagement, potentially enhancing stakeholder confidence in the company’s governance and employee alignment with corporate goals.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £240.00 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

SSP Group Announces Change in Major Holdings

SSP Group plc has announced a change in the nature of its major holdings, with HSBC Holdings plc now holding a slightly reduced percentage of voting rights in the company. The total voting rights held by HSBC have decreased from 9.205% to 9.092%, reflecting a minor adjustment in their investment position. This change in holdings could have implications for SSP Group’s shareholder dynamics and may influence future decision-making processes within the company.

SSP Group CEO Engages in Share Transaction Under LTIP

SSP Group plc announced a transaction involving its Group CEO, Patrick Coveney, who acquired shares under the company’s Long Term Incentive Plan (LTIP) and subsequently sold a portion to cover tax liabilities. This transaction reflects the company’s ongoing commitment to aligning executive compensation with long-term performance, potentially impacting stakeholder perceptions and reinforcing the CEO’s vested interest in the company’s success.

SSP Group Executives Acquire Shares Under UK Incentive Plan

SSP Group plc has announced that several of its managerial personnel have acquired ordinary shares under the company’s UK Share Incentive Plan (UK SIP). The transactions, which involved both the purchase of Partnership Shares and the allocation of Matching Shares, were conducted at a price of £1.3919 per share for the Partnership Shares, with the Matching Shares awarded at no cost. This move is part of the company’s broader strategy to align managerial interests with shareholders and enhance employee engagement through share ownership. The transactions were conducted on the London Stock Exchange and are in compliance with the UK Market Abuse Regulation.

SSP Group CEO Asia Pacific Exercises Share Award

SSP Group plc announced a transaction involving Jonathan Robinson, CEO Asia Pacific, who exercised a Restricted Share Award under the company’s Long Term Incentive Plan. This transaction, involving 37,187 ordinary shares at a price of £1.4748 each, was conducted on the London Stock Exchange and reflects the company’s ongoing commitment to rewarding its management team, potentially impacting its market perception and stakeholder confidence.

SSP Group PLC Announces Transfer of Investment Management Activities

SSP Group PLC, a UK-based company, announced a significant change in its investment management activities. Parvus Asset Management Europe Limited has transferred its entire investment management operations to Parvus Asset Management Jersey Limited, effective March 31, 2025. This transfer results in Parvus Asset Management Jersey Limited holding 10.669237% of voting rights in SSP Group PLC, marking a notable shift in the company’s shareholder structure. This change is expected to impact the company’s operations and stakeholder dynamics, as Parvus Asset Management Jersey Limited now has the authority to vote on behalf of various funds and managed accounts.

SSP Group Announces Transfer of Investment Management Activities

SSP Group plc announced a change in the management of its investment activities, with Parvus Asset Management Europe Limited transferring its entire investment management activity to Parvus Asset Management Jersey Limited as of March 31, 2025. This transfer indicates a strategic shift in the management of SSP Group’s investment operations, potentially impacting its financial strategies and stakeholder relations.

Parvus Asset Management Increases Stake in SSP Group PLC

SSP Group PLC, a UK-based company, has announced a significant change in its shareholder structure. Parvus Asset Management Europe Limited has increased its voting rights in SSP Group to 10.23% from a previous 5.19%, following the acquisition of financial instruments. This change in holdings could potentially impact SSP Group’s strategic decisions and influence its market positioning, as Parvus Asset Management now holds a substantial influence over the company’s voting rights.