COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - NYSE:CODI - US20451Q1040 - Common Stock
5.54 USD
-0.03 (-0.54%)
5.46 USD
-0.08 (-1.44%)
Taking everything into account, CODI scores 5 out of 10 in our fundamental rating. CODI was compared to 97 industry peers in the Financial Services industry. There are concerns on the financial health of CODI while its profitability can be described as average. CODI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CODI was profitable.
CODI had a negative operating cash flow in the past year.
In multiple years CODI reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CODI reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.12%, CODI is doing worse than 84.54% of the companies in the same industry.
With a Return On Equity value of -9.75%, CODI is not doing good in the industry: 82.47% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 6.33%, CODI is in the better half of the industry, outperforming 71.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CODI is below the industry average of 8.15%.
The last Return On Invested Capital (6.33%) for CODI is above the 3 year average (4.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -9.75% | ||
| ROIC | 6.33% |
ROA(3y)1.22%
ROA(5y)0.97%
ROE(3y)3.42%
ROE(5y)2.78%
ROIC(3y)4.59%
ROIC(5y)4.28%
1.3 Margins
CODI's Operating Margin of 10.80% is in line compared to the rest of the industry. CODI outperforms 40.21% of its industry peers.
CODI's Operating Margin has improved in the last couple of years.
CODI has a better Gross Margin (45.63%) than 67.01% of its industry peers.
CODI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 45.63% |
OM growth 3Y8.37%
OM growth 5Y18.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.66%
GM growth 5Y4.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CODI is creating some value.
Compared to 1 year ago, CODI has about the same amount of shares outstanding.
The number of shares outstanding for CODI has been increased compared to 5 years ago.
Compared to 1 year ago, CODI has a worse debt to assets ratio.
2.2 Solvency
CODI has an Altman-Z score of 1.22. This is a bad value and indicates that CODI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CODI (1.22) is better than 62.89% of its industry peers.
CODI has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.36, CODI is doing worse than 60.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.04
WACC6.1%
2.3 Liquidity
CODI has a Current Ratio of 4.07. This indicates that CODI is financially healthy and has no problem in meeting its short term obligations.
CODI has a Current ratio of 4.07. This is amongst the best in the industry. CODI outperforms 87.63% of its industry peers.
A Quick Ratio of 1.57 indicates that CODI should not have too much problems paying its short term obligations.
CODI has a Quick ratio of 1.57. This is in the better half of the industry: CODI outperforms 73.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.07 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.10% over the past year.
The Earnings Per Share has been growing slightly by 6.59% on average over the past years.
Looking at the last year, CODI shows a very strong growth in Revenue. The Revenue has grown by 32.23%.
CODI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.72% yearly.
EPS 1Y (TTM)16.1%
EPS 3Y-4.24%
EPS 5Y6.59%
EPS Q2Q%16.98%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y4.39%
Revenue growth 5Y11.72%
Sales Q2Q%9.39%
3.2 Future
CODI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.97% yearly.
The Revenue is expected to grow by 8.66% on average over the next years. This is quite good.
EPS Next Y3.29%
EPS Next 2Y6.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y8.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 2.33, the valuation of CODI can be described as very cheap.
Based on the Price/Earnings ratio, CODI is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, CODI is valued rather cheaply.
CODI is valuated cheaply with a Price/Forward Earnings ratio of 2.25.
CODI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CODI is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. CODI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.33 | ||
| Fwd PE | 2.25 |
4.2 Price Multiples
CODI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CODI is cheaper than 90.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.71
PEG (5Y)0.35
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CODI has a Yearly Dividend Yield of 10.62%, which is a nice return.
The stock price of CODI dropped by -24.52% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CODI's Dividend Yield is rather good when compared to the industry average which is at 4.47. CODI pays more dividend than 96.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.62% |
5.2 History
The dividend of CODI decreases each year by -13.06%.
CODI has been paying a dividend for at least 10 years, so it has a reliable track record.
CODI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.06%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of CODI are negative and hence is the payout ratio. CODI will probably not be able to sustain this dividend level.
DP-79.81%
EPS Next 2Y6.97%
EPS Next 3YN/A
5.54
-0.03 (-0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change-6.4%
Ins Owners1.71%
Ins Owner Change0%
Market Cap416.83M
Revenue(TTM)2.72B
Net Income(TTM)-126.49M
Analysts80
Price Target26.52 (378.7%)
Short Float %5.94%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.62% |
Yearly Dividend1.34
Dividend Growth(5Y)-13.06%
DP-79.81%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.25%
Min EPS beat(2)8.3%
Max EPS beat(2)16.19%
EPS beat(4)4
Avg EPS beat(4)14.11%
Min EPS beat(4)2.16%
Max EPS beat(4)29.78%
EPS beat(8)8
Avg EPS beat(8)21.16%
EPS beat(12)11
Avg EPS beat(12)22.28%
EPS beat(16)15
Avg EPS beat(16)27.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-4.82%
Max Revenue beat(4)-2.59%
Revenue beat(8)0
Avg Revenue beat(8)-3.67%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)5
Avg Revenue beat(16)-0.02%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.71%
EPS NY rev (1m)0%
EPS NY rev (3m)12.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.33 | ||
| Fwd PE | 2.25 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.89 |
EPS(TTM)2.38
EY42.96%
EPS(NY)2.46
Fwd EY44.37%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.71
PEG (5Y)0.35
Graham Number30.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -9.75% | ||
| ROCE | 8.01% | ||
| ROIC | 6.33% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 14.73% | ||
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 45.63% | ||
| FCFM | N/A |
ROA(3y)1.22%
ROA(5y)0.97%
ROE(3y)3.42%
ROE(5y)2.78%
ROIC(3y)4.59%
ROIC(5y)4.28%
ROICexc(3y)4.84%
ROICexc(5y)4.5%
ROICexgc(3y)12.37%
ROICexgc(5y)12.25%
ROCE(3y)5.81%
ROCE(5y)5.41%
ROICexgc growth 3Y-7.31%
ROICexgc growth 5Y8.83%
ROICexc growth 3Y1.71%
ROICexc growth 5Y12.65%
OM growth 3Y8.37%
OM growth 5Y18.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.66%
GM growth 5Y4.7%
F-Score3
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.04 | ||
| Cap/Depr | 39.47% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.07 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.22 |
F-Score3
WACC6.1%
ROIC/WACC1.04
Cap/Depr(3y)41.66%
Cap/Depr(5y)37.77%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.1%
EPS 3Y-4.24%
EPS 5Y6.59%
EPS Q2Q%16.98%
EPS Next Y3.29%
EPS Next 2Y6.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)32.23%
Revenue growth 3Y4.39%
Revenue growth 5Y11.72%
Sales Q2Q%9.39%
Revenue Next Year9.05%
Revenue Next 2Y8.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.44%
EBIT growth 3Y13.13%
EBIT growth 5Y32.84%
EBIT Next Year126.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-657.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-186.62%
OCF growth 3YN/A
OCF growth 5YN/A
COMPASS DIVERSIFIED HOLDINGS / CODI FAQ
What is the fundamental rating for CODI stock?
ChartMill assigns a fundamental rating of 5 / 10 to CODI.
What is the valuation status of COMPASS DIVERSIFIED HOLDINGS (CODI) stock?
ChartMill assigns a valuation rating of 7 / 10 to COMPASS DIVERSIFIED HOLDINGS (CODI). This can be considered as Undervalued.
How profitable is COMPASS DIVERSIFIED HOLDINGS (CODI) stock?
COMPASS DIVERSIFIED HOLDINGS (CODI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of COMPASS DIVERSIFIED HOLDINGS (CODI) stock?
The Price/Earnings (PE) ratio for COMPASS DIVERSIFIED HOLDINGS (CODI) is 2.33 and the Price/Book (PB) ratio is 0.32.
Is the dividend of COMPASS DIVERSIFIED HOLDINGS sustainable?
The dividend rating of COMPASS DIVERSIFIED HOLDINGS (CODI) is 5 / 10 and the dividend payout ratio is -79.81%.