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CODI

Compass Diversified NYSE:CODI Stock Report

Last Price

US$22.24

Market Cap

US$1.6b

7D

6.2%

1Y

-10.4%

Updated

18 May, 2022

Data

Company Financials +
CODI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends2/6

CODI Stock Overview

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments.

Compass Diversified Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Compass Diversified
Historical stock prices
Current Share PriceUS$22.24
52 Week HighUS$33.31
52 Week LowUS$20.30
Beta1.75
1 Month Change-6.32%
3 Month Change-6.91%
1 Year Change-10.40%
3 Year Change35.28%
5 Year Change36.44%
Change since IPO47.97%

Recent News & Updates

Apr 05

A More Aggressive Compass Diversified Holdings Could Be Better For Its Shareholders

Supply chain challenges are impacting the business, but Compass' portfolio is largely acyclical and should see strong underlying demand. I still believe both 5.11 and Arnold could ultimately be even stronger contributors to the business than they are today, but more patience will be required. Management has made it clear that they are looking for more growth, with an increased willingness to invest in growth projects at portfolio companies and acquire faster-growing portfolio companies. I'm expecting a somewhat faster pace of growth from Compass, with increased distribution-paying capability down the line, and the shares look undervalued today.

Shareholder Returns

CODIUS Diversified FinancialUS Market
7D6.2%0.8%2.7%
1Y-10.4%7.7%-8.1%

Return vs Industry: CODI underperformed the US Diversified Financial industry which returned 5.2% over the past year.

Return vs Market: CODI exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is CODI's price volatile compared to industry and market?
CODI volatility
CODI Average Weekly Movement6.2%
Diversified Financial Industry Average Movement7.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: CODI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CODI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20054,113Elias Sabohttps://compassdiversified.com

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage 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.

Compass Diversified Fundamentals Summary

How do Compass Diversified's earnings and revenue compare to its market cap?
CODI fundamental statistics
Market CapUS$1.62b
Earnings (TTM)-US$42.70m
Revenue (TTM)US$1.94b

0.8x

P/S Ratio

-36.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CODI income statement (TTM)
RevenueUS$1.94b
Cost of RevenueUS$1.18b
Gross ProfitUS$762.49m
Other ExpensesUS$805.19m
Earnings-US$42.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.61
Gross Margin39.23%
Net Profit Margin-2.20%
Debt/Equity Ratio98.6%

How did CODI perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

-190%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


1.88x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CODI's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CODI's fair value for valuation analysis.


Price To Earnings Ratio

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

PE vs Market: CODI 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's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CODI is overvalued based on its PB Ratio (2x) compared to the US Diversified Financial industry average (0.9x).


Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CODI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: CODI's revenue (9.1% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: CODI's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CODI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Compass Diversified performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CODI is currently unprofitable.

Growing Profit Margin: CODI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CODI is unprofitable, and losses have increased over the past 5 years at a rate of 12.3% per year.

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

Earnings vs Industry: CODI is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (-0.9%).


Return on Equity

High ROE: CODI has a negative Return on Equity (2.31%), as it is currently unprofitable.


Financial Health

How is Compass Diversified's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CODI's short term assets ($1.2B) exceed its short term liabilities ($356.3M).

Long Term Liabilities: CODI's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: CODI's net debt to equity ratio (91.1%) is considered high.

Reducing Debt: CODI's debt to equity ratio has increased from 65.6% to 98.6% over the past 5 years.


Balance Sheet


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: Whilst unprofitable CODI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CODI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.3% per year.


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CODI's dividend (4.32%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: CODI's dividend (4.32%) is in the top 25% of dividend payers in the US market (4.06%)


Stability and Growth of Payments

Stable Dividend: CODI's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (331.6%), CODI's dividend payments are not well covered by cash flows.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Elias Sabo (50 yo)

4yrs

Tenure

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


Leadership Team

Experienced Management: CODI's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: CODI's board of directors are considered experienced (9.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CODI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.1%.


Top Shareholders

Company Information

Compass Diversified's employee growth, exchange listings and data sources


Key Information

  • Name: Compass Diversified
  • Ticker: CODI
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.624b
  • Shares outstanding: 70.17m
  • Website: https://compassdiversified.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.