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CODI

Compass Diversified NYSE:CODI Stock Report

Last Price

US$24.65

Market Cap

US$1.8b

7D

3.5%

1Y

-11.0%

Updated

14 Aug, 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$24.65
52 Week HighUS$33.31
52 Week LowUS$20.30
Beta1.67
1 Month Change12.81%
3 Month Change7.97%
1 Year Change-10.98%
3 Year Change31.61%
5 Year Change44.15%
Change since IPO64.01%

Recent News & Updates

Jul 29

Compass Diversified scraps sale of Advanced Circuits to Tempo Automation

Compass Diversified (NYSE:CODI) said Friday it terminated the sale of its unit Advanced Circuits to Tempo Automation. The closing of the sale was conditioned on Tempo Automation being acquired by a publicly traded SPAC. Due to continued delay in closing the SPAC deal, CODI and Advanced Circuits elected to terminate the sale.

Jul 19

Compass Diversified goes ex-dividend tomorrow

Compass Diversified (NYSE:CODI) had declared $0.25/share quarterly dividend, in line with previous. Payable July 28; for shareholders of record July 21; ex-div July 20. See CODI Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

CODIUS Diversified FinancialUS Market
7D3.5%3.3%3.2%
1Y-11.0%4.0%-10.2%

Return vs Industry: CODI underperformed the US Diversified Financial industry which returned 4% over the past year.

Return vs Market: CODI matched the US Market which returned -10.1% over the past year.

Price Volatility

Is CODI's price volatile compared to industry and market?
CODI volatility
CODI Average Weekly Movement6.0%
Diversified Financial Industry Average Movement6.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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$1.77b
Earnings (TTM)-US$1.80m
Revenue (TTM)US$2.03b

0.9x

P/S Ratio

-984.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CODI income statement (TTM)
RevenueUS$2.03b
Cost of RevenueUS$1.23b
Gross ProfitUS$801.48m
Other ExpensesUS$803.28m
Earnings-US$1.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.025
Gross Margin39.53%
Net Profit Margin-0.088%
Debt/Equity Ratio94.9%

How did CODI perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

-4,189%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CODI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CODI?

Other financial metrics that can be useful for relative valuation.

CODI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA12x
PEG Ration/a

Price to Book Ratio vs Peers

How does CODI's PB Ratio compare to its peers?

CODI PB Ratio vs Peers
The above table shows the PB ratio for CODI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average0.8x
CNNE Cannae Holdings
0.7x122.1%US$1.9b
ELRN.F Elron Ventures
1.3xn/aUS$125.6m
JXN Jackson Financial
0.3x-37.7%US$2.9b
ARI Apollo Commercial Real Estate Finance
0.8x12.7%US$1.8b
CODI Compass Diversified
2x94.7%US$1.8b

Price-To-Book vs Peers: CODI is expensive based on its Price-To-Book Ratio (2x) compared to the peer average (0.6x).


Price to Earnings Ratio vs Industry

How does CODI's PE Ratio compare vs other companies in the US Diversified Financial Industry?

Price-To-Book vs Industry: CODI is expensive based on its Price-To-Book Ratio (2x) compared to the US Diversified Financial industry average (0.8x)


Price to Book Ratio vs Fair Ratio

What is CODI's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CODI PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio2x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate CODI's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of CODI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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


94.7%

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 is expected to become profitable in the next 3 years.

Revenue vs Market: CODI's revenue (8.7% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: CODI's revenue (8.7% 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


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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


-6.3%

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 6.3% 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 (-45.1%).


Return on Equity

High ROE: CODI has a negative Return on Equity (5.78%), as it is currently unprofitable.


Discover strong past performing companies

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 ($365.3M).

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 (87.3%) is considered high.

Reducing Debt: CODI's debt to equity ratio has increased from 62.3% to 94.9% 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: CODI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CODI has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 2.7% each year


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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

  • Cash Flow Coverage


4.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CODI's dividend (4.06%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CODI's dividend (4.06%) is in the top 25% of dividend payers in the US market (3.96%)


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: CODI is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.6yrs

Average management tenure


CEO

Elias Sabo (51 yo)

4.25yrs

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 (3.6 years average tenure).


Board Members

Experienced Board: CODI's board of directors are considered experienced (5.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.


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$1.768b
  • Shares outstanding: 71.73m
  • 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 Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
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.