COMPOSECURE INC-A (CMPO) Stock Fundamental Analysis
NASDAQ:CMPO - Nasdaq - US20459V1052 - Common Stock - Currency: USD
Taking everything into account, CMPO scores 5 out of 10 in our fundamental rating. CMPO was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. CMPO has only an average score on both its financial health and profitability. CMPO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CMPO was profitable.
CMPO had a positive operating cash flow in the past year.
In multiple years CMPO reported negative net income over the last 5 years.
CMPO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CMPO has a Return On Assets of -10.08%. This is in the lower half of the industry: CMPO underperforms 62.50% of its industry peers.
CMPO's Return On Invested Capital of 27.57% is amongst the best of the industry. CMPO outperforms 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMPO is significantly above the industry average of 15.57%.
The 3 year average ROIC (52.37%) for CMPO is well above the current ROIC(27.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.08% | ||
| ROE | N/A | ||
| ROIC | 27.57% |
ROA(3y)3.24%
ROA(5y)3.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)52.37%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 26.45%, CMPO belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of CMPO has declined.
CMPO has a Gross Margin of 52.32%. This is amongst the best in the industry. CMPO outperforms 90.63% of its industry peers.
CMPO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.45% | ||
| PM (TTM) | N/A | ||
| GM | 52.32% |
OM growth 3Y-5.56%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.2%
GM growth 5YN/A
2. Health
2.1 Basic Checks
CMPO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CMPO has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, CMPO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.89 indicates that CMPO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.89, CMPO perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
CMPO has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
CMPO's Debt to FCF ratio of 1.62 is amongst the best of the industry. CMPO outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 1.89 |
ROIC/WACC3.29
WACC8.38%
2.3 Liquidity
CMPO has a Current Ratio of 2.28. This indicates that CMPO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.28, CMPO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that CMPO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, CMPO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.02% over the past year.
The Revenue has grown by 34.30% in the past year. This is a very strong growth!
The Revenue has been growing by 16.22% on average over the past years. This is quite good.
EPS 1Y (TTM)1.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-23.08%
Revenue 1Y (TTM)34.3%
Revenue growth 3Y16.22%
Revenue growth 5YN/A
Sales Q2Q%0.96%
3.2 Future
Based on estimates for the next years, CMPO will show a small growth in Earnings Per Share. The EPS will grow by 2.33% on average per year.
The Revenue is expected to grow by 7.28% on average over the next years.
EPS Next Y-8.44%
EPS Next 2Y2.82%
EPS Next 3Y2.33%
EPS Next 5YN/A
Revenue Next Year4.8%
Revenue Next 2Y6.49%
Revenue Next 3Y7.28%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CMPO is valuated reasonably with a Price/Earnings ratio of 10.90.
Based on the Price/Earnings ratio, CMPO is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.78. CMPO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.90, which indicates a very decent valuation of CMPO.
CMPO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CMPO to the average of the S&P500 Index (21.32), we can say CMPO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMPO indicates a somewhat cheap valuation: CMPO is cheaper than 71.88% of the companies listed in the same industry.
CMPO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMPO is cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.82%
EPS Next 3Y2.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.78%, CMPO has a reasonable but not impressive dividend return.
In the last 3 months the price of CMPO has falen by -31.80%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CMPO's Dividend Yield is rather good when compared to the industry average which is at 3.55. CMPO pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, CMPO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
CMPO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of CMPO are negative and hence is the payout ratio. CMPO will probably not be able to sustain this dividend level.
DP-18.67%
EPS Next 2Y2.82%
EPS Next 3Y2.33%
10.79
-0.08 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners55.65%
Inst Owner Change0.1%
Ins Owners5.99%
Ins Owner Change-0.15%
Market Cap1.10B
Analysts81.54
Price Target15.52 (43.84%)
Short Float %17.06%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP-18.67%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.31%
Min EPS beat(2)-7.35%
Max EPS beat(2)-7.26%
EPS beat(4)1
Avg EPS beat(4)-1.97%
Min EPS beat(4)-7.35%
Max EPS beat(4)7.11%
EPS beat(8)2
Avg EPS beat(8)-0.86%
EPS beat(12)4
Avg EPS beat(12)13.46%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)-0.42%
Revenue beat(4)2
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)3.08%
Revenue beat(8)3
Avg Revenue beat(8)-1.15%
Revenue beat(12)6
Avg Revenue beat(12)0.85%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-14.59%
PT rev (3m)-15.18%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-24.53%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-14%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.9 | ||
| P/S | 2.1 | ||
| P/FCF | 9.12 | ||
| P/OCF | 8.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.26 |
EPS(TTM)0.99
EY9.18%
EPS(NY)0.91
Fwd EY8.4%
FCF(TTM)1.18
FCFY10.97%
OCF(TTM)1.27
OCFY11.73%
SpS5.13
BVpS-1.4
TBVpS-1.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.08% | ||
| ROE | N/A | ||
| ROCE | 34.9% | ||
| ROIC | 27.57% | ||
| ROICexc | 34.24% | ||
| ROICexgc | 34.24% | ||
| OM | 26.45% | ||
| PM (TTM) | N/A | ||
| GM | 52.32% | ||
| FCFM | 23.09% |
ROA(3y)3.24%
ROA(5y)3.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)52.37%
ROIC(5y)N/A
ROICexc(3y)64.23%
ROICexc(5y)N/A
ROICexgc(3y)64.23%
ROICexgc(5y)N/A
ROCE(3y)66.3%
ROCE(5y)N/A
ROICexcg growth 3Y-41.29%
ROICexcg growth 5YN/A
ROICexc growth 3Y-41.29%
ROICexc growth 5YN/A
OM growth 3Y-5.56%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.2%
GM growth 5YN/A
F-Score3
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 92.05% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | 87.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 1.89 |
F-Score3
WACC8.38%
ROIC/WACC3.29
Cap/Depr(3y)109.34%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.4%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-23.08%
EPS Next Y-8.44%
EPS Next 2Y2.82%
EPS Next 3Y2.33%
EPS Next 5YN/A
Revenue 1Y (TTM)34.3%
Revenue growth 3Y16.22%
Revenue growth 5YN/A
Sales Q2Q%0.96%
Revenue Next Year4.8%
Revenue Next 2Y6.49%
Revenue Next 3Y7.28%
Revenue Next 5YN/A
EBIT growth 1Y16.58%
EBIT growth 3Y9.76%
EBIT growth 5YN/A
EBIT Next Year19.53%
EBIT Next 3Y13.59%
EBIT Next 5YN/A
FCF growth 1Y29.71%
FCF growth 3Y18.37%
FCF growth 5YN/A
OCF growth 1Y24.2%
OCF growth 3Y18.54%
OCF growth 5YN/A