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1. Company Snapshot

1.a. Company Description

SSP Group plc operates food and beverage outlets.The company operates outlets at airports, railway stations, motorway service areas, hospitals, and shopping centers.It operates approximately 550 brands in 36 countries in the United Kingdom, Europe, North America, and internationally.


SSP Group plc was incorporated in 2006 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on SSPG

SSP Group's recent performance is driven by strategic exposure to growth markets, including the US and India. Despite a modest decrease in fair value estimates, analysts remain optimistic about the company's international expansion. A significant shareholder, Irenic Capital Management, has commended the chair's service and announced plans to step down, potentially paving the way for new leadership. Additionally, the company's stable trading performance against an unsettled macroeconomic environment and softer demand in key travel spots is a positive indicator.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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FTSE 100 Live: Blue-chip index flat; banks and builders on the march

Nov -27

Source: proactiveinvestors.com

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FTSE 100 Live: London index dragged down by ex-divs and tobacco stocks

Nov -27

Source: proactiveinvestors.com

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Irenic Commends SSP Chair for His Service to the Company

Nov -10

Source:

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SSP Group chair Mike Clasper to step down in 2026

Nov -10

Source:

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Looking at the Narrative for SSP Group After Analyst Updates and Share Buyback News

Oct -29

Source:

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Why The Narrative Around SSP Group Is Shifting After Analyst and Market Updates

Oct -14

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Upper Crust owner SSP boosts sales despite London Tube strike hit

Oct -09

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Irenic Capital moves to rustle up takeover interest in Upper Crust owner SSP, FT reports

Sep -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.72%)

6. Segments

Air

Expected Growth: 6.5%

Air segment growth of 6.5% at SSP Group plc is driven by increasing passenger traffic, higher average transaction values, and expansion into new markets. Additionally, investments in digital transformation, enhanced customer experience, and strategic partnerships contribute to the growth. Furthermore, the recovery of international travel and the rise of contactless payments also support the segment's growth momentum.

Rail

Expected Growth: 7.5%

Rail segment's 7.5% growth driven by increasing passenger traffic, expansion of rail networks, and rising demand for convenient food and beverage options at travel hubs. SSP Group's strategic partnerships with rail operators and investment in digital platforms also contribute to growth.

Other

Expected Growth: 6.0%

SSP Group plc's 6.0% growth is driven by increasing passenger traffic, expansion into new markets, and strategic partnerships. The company's focus on digital transformation, improved customer experience, and operational efficiency also contribute to its growth. Additionally, the rise of travel and tourism, particularly in Asia, fuels demand for SSP's food and beverage offerings.

7. Detailed Products

Upper Crust

A popular brand of sandwiches, salads, and snacks sold in travel locations

Caffè Ritazza

A coffee shop brand offering a range of coffee, sandwiches, and snacks

Millie's Cookies

A brand of freshly baked cookies and muffins sold in travel locations

Pret a Manger

A brand of freshly prepared food and organic coffee sold in travel locations

EAT.

A brand of freshly prepared food and coffee sold in travel locations

Cabin

A brand of food and beverage outlets offering a range of snacks and drinks

The Bakery

A brand of freshly baked bread and pastries sold in travel locations

8. SSP Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SSP Group plc is moderate, as customers have some alternatives to SSP's food and beverage offerings, but they are not easily substitutable.

Bargaining Power Of Customers

The bargaining power of customers is low, as SSP Group plc operates in a competitive market with many players, and customers have limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as SSP Group plc relies on a diverse range of suppliers, but some suppliers may have significant bargaining power.

Threat Of New Entrants

The threat of new entrants is high, as the food and beverage industry is relatively easy to enter, and new entrants can easily disrupt the market.

Intensity Of Rivalry

The intensity of rivalry is high, as SSP Group plc operates in a highly competitive market with many established players, and competition is fierce.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.73%
Debt Cost 8.94%
Equity Weight 19.27%
Equity Cost 12.88%
WACC 9.70%
Leverage 418.97%

11. Quality Control: SSP Group plc passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Young's

A-Score: 4.6/10

Value: 5.6

Growth: 4.0

Quality: 3.1

Yield: 3.8

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
SSP Group

A-Score: 4.5/10

Value: 7.3

Growth: 5.6

Quality: 1.7

Yield: 1.9

Momentum: 5.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Wetherspoon

A-Score: 4.4/10

Value: 7.4

Growth: 5.1

Quality: 2.7

Yield: 1.2

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Marstons

A-Score: 4.3/10

Value: 9.1

Growth: 5.7

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
HelloFresh

A-Score: 3.2/10

Value: 8.9

Growth: 5.3

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Elior

A-Score: 2.8/10

Value: 7.1

Growth: 3.2

Quality: 1.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.72$

Current Price

1.72$

Potential

-0.00%

Expected Cash-Flows