What CompoSecure (CMPO)'s Removal From the NASDAQ Composite Index Means For Shareholders
- CompoSecure was removed from the NASDAQ Composite Index in September 2025, following an official announcement by index administrators.
- This index exclusion may prompt significant shifts in institutional ownership because passive funds tracking the index often adjust their portfolios accordingly.
- We'll examine how CompoSecure's removal from the NASDAQ Composite Index may influence its investment narrative and future market positioning.
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CompoSecure Investment Narrative Recap
To invest in CompoSecure, you need to believe in the continued demand for premium physical payment cards and the successful expansion into digital authentication solutions like Arculus. The recent removal from the NASDAQ Composite Index doesn’t materially impact the key short-term catalyst, new product adoption, or the biggest risk: shifting consumer preferences toward digital wallets and authentication, which remains a long-term concern.
Among recent corporate updates, the change in primary exchange listing from NASDAQ to the New York Stock Exchange is particularly relevant, as it occurred just weeks before the index exclusion. While this move could affect liquidity and investor composition in the short term, the fundamental catalysts, such as growth in digital authentication and card partnerships, still drive the company’s market narrative.
Yet, investors should also recognize that despite these potential opportunities, concentration risk from relying on a small set of large customers remains an underappreciated issue...
Read the full narrative on CompoSecure (it's free!)
CompoSecure's narrative projects $642.6 million in revenue and $508.0 million in earnings by 2028. This requires 33.9% yearly revenue growth and a $583.4 million increase in earnings from the current -$75.4 million.
Uncover how CompoSecure's forecasts yield a $19.00 fair value, a 7% downside to its current price.
Exploring Other Perspectives
Four Simply Wall St Community fair value estimates for CompoSecure range widely from US$4.38 to US$26.43 per share. This diversity highlights how differing opinions intersect with the long-term risk that customer concentration could impact future revenue and stability, take a closer look at these perspectives to deepen your understanding.
Explore 4 other fair value estimates on CompoSecure - why the stock might be worth as much as 30% more than the current price!
Build Your Own CompoSecure Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your CompoSecure research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
- Our free CompoSecure research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CompoSecure's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if CompoSecure might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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