NYSE:CODI.PRB

Stock Analysis Report

Executive Summary

Compass Diversified Holdings LLC is a private equity firm specializing in acquisitions, buyouts, industry consolidation, recapitalization, and middle market investments.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Compass Diversified Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CODI.PRB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

CODI.PRB

0.9%

US Diversified Financial

-1.1%

US Market


1 Year Return

13.1%

CODI.PRB

13.8%

US Diversified Financial

17.8%

US Market

Return vs Industry: CODI.PRB underperformed the US Diversified Financial industry which returned 14.2% over the past year.

Return vs Market: CODI.PRB underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

CODI.PRBIndustryMarket
7 Day-1.2%0.9%-1.1%
30 Day-1.3%1.3%1.5%
90 Day2.3%4.8%6.6%
1 Year22.6%13.1%14.0%13.8%20.2%17.8%
3 Yearn/a33.1%32.7%47.5%38.1%
5 Yearn/a53.9%53.3%71.2%52.4%

Price Volatility Vs. Market

How volatile is Compass Diversified Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Compass Diversified Holdings undervalued compared to its fair value and its price relative to the market?

1.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CODI.PRB ($25.78) is trading above our estimate of fair value ($3.34)

Significantly Below Fair Value: CODI.PRB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CODI.PRB is unprofitable, so we can't compare its PE Ratio to the Diversified Financial industry average.

PE vs Market: CODI.PRB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CODI.PRB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CODI.PRB is overvalued based on its PB Ratio (1.5x) compared to the US Diversified Financial industry average (0.8x).

Future Growth

How is Compass Diversified Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-52.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CODI.PRB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CODI.PRB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CODI.PRB's is expected to become profitable in the next 3 years.

Revenue vs Market: CODI.PRB's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: CODI.PRB's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CODI.PRB's Return on Equity is forecast to be low in 3 years time (4.8%).

Past Performance

How has Compass Diversified Holdings performed over the past 5 years?

-76.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CODI.PRB is currently unprofitable.

Growing Profit Margin: CODI.PRB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CODI.PRB is unprofitable, and losses have increased over the past 5 years at a rate of -76.9% per year.

Accelerating Growth: Unable to compare CODI.PRB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CODI.PRB is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (38%).


Return on Equity

High ROE: CODI.PRB has a negative Return on Equity (-3.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed

Financial Health

How is Compass Diversified Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CODI.PRB has a high level of physical assets or inventory.

Debt Coverage by Assets: CODI.PRB's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CODI.PRB has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CODI.PRB has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: CODI.PRB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CODI.PRB has a sufficient allowance for bad loans.

Low Risk Liabilities: CODI.PRB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CODI.PRB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CODI.PRB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CODI.PRB has an appropriate level of bad loans.

Dividend

What is Compass Diversified Holdings's current dividend yield, its reliability and sustainability?

6.71%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: CODI.PRB's dividend (6.71%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CODI.PRB's dividend (6.71%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: CODI.PRB's dividends per share have been stable in the past 10 years.

Growing Dividend: CODI.PRB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: CODI.PRB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CODI.PRB's dividends in 3 years are not forecast to be well covered by earnings (158.9% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Elias Sabo (48yo)

1.8yrs

Tenure

0

Mr. Elias Joseph Sabo serves as a partner, Chief Executive Officer and Director at Compass Diversified Holdings LLC since May 03, 2018. He was Partner of The Compass Group at Compass Diversified Holdings L ...


Leadership Team

NamePositionTenureCompensationOwnership
Elias Sabo
Partner1.8yrsno data0.98% $12.6m
Ryan Faulkingham
Executive VP6.3yrsUS$912.77k0.021% $264.8k
Joseph Milana
CAO & Executive VP of Finance0yrsno datano data
Patrick Maciariello
Chief Operating Officer1.1yrsno data0.27% $3.5m
Carrie Ryan
General Counsel0yrsno datano data
Demetrios Dounis
Partner & Head of Business Development5.1yrsno datano data
Kerri Tiernan
Senior Vice President & Controller0yrsno datano data
David Abate
VP & Treasurer0yrsno datano data
Francisco Morales
CEO of 5.11 Tactical0yrsno datano data
Raj Dalal
Principal0yrsno datano data

3.4yrs

Average Tenure

Experienced Management: CODI.PRB's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Elias Sabo
Partner1.8yrsno data0.98% $12.6m
Larry Enterline
Director0.6yrsno data0.0065% $83.7k
C. Day
Independent Chairman of the Board13.8yrsUS$270.00k1.03% $13.2m
James Bottiglieri
Independent Director14.2yrsUS$195.00k0.12% $1.5m
Kuo-Yuen Hsu
Member of Advisory Committee of The Compass Group0yrsno datano data
Axel Karlshoej
Member of Advisory Committee of The Compass Group0yrsno datano data
Harold Edwards
Independent Director13.8yrsUS$200.00k0.11% $1.4m
Gordon Burns
Independent Director11.8yrsUS$200.00k0.052% $667.2k
D. Ewing
Independent Lead Director0.6yrsUS$230.00k0.13% $1.7m
Sarah McCoy
Director3.1yrsUS$195.00k0.027% $345.5k

7.4yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CODI.PRB's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Compass Diversified Holdings LLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compass Diversified Holdings LLC
  • Ticker: CODI.PRB
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: US$1.285b
  • Shares outstanding: 59.90m
  • Website: https://www.compassequity.com

Number of Employees


Location

  • Compass Diversified Holdings LLC
  • 301 Riverside Avenue
  • 2nd Floor
  • Westport
  • Connecticut
  • 6880
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CODINYSE (New York Stock Exchange)YesTrust SharesUSUSDMay 2006
5CXDB (Deutsche Boerse AG)YesTrust SharesDEEURMay 2006
CODI.PRANYSE (New York Stock Exchange)7.250% PFD SER AUSUSDJun 2017
CODI.PRBNYSE (New York Stock Exchange)7.87% CUM PFD BUSUSDMar 2018
CODI.PRCNYSE (New York Stock Exchange)7.875 PFD SER CUSUSDNov 2019

Biography

Compass Diversified Holdings LLC is a private equity firm specializing in acquisitions, buyouts, industry consolidation, recapitalization, and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, safety & security, electronic components, food, foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $4 million and $700 million in companies with cash flows between $10 million and $450 million, enterprise values between $100 million and $500 million, and an EBITDA between $5 million and $75 million. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have majority, and minority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Group Management LLC is the external manager of the Compass Diversified Holdings LLC and manages day-to-day business and operations of firm. Compass Diversified Holdings LLC was founded in 2005 and is based in Westport, Connecticut with an additional office in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:41
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.