COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
NYSE:CODI - New York Stock Exchange, Inc. - US20451Q1040 - Common Stock - Currency: USD
CODI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. CODI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CODI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CODI had positive earnings in the past year.
In the past year CODI has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: CODI reported negative net income in multiple years.
In multiple years CODI reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of CODI (-3.12%) is worse than 88.00% of its industry peers.
CODI's Return On Equity of -9.75% is on the low side compared to the rest of the industry. CODI is outperformed by 84.00% of its industry peers.
The Return On Invested Capital of CODI (6.33%) is better than 73.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CODI is significantly below the industry average of 11.84%.
The 3 year average ROIC (4.59%) for CODI is below the current ROIC(6.33%), indicating increased profibility in the last year.
| 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
The Operating Margin of CODI (10.80%) is worse than 61.00% of its industry peers.
CODI's Operating Margin has improved in the last couple of years.
CODI has a Gross Margin of 45.63%. This is in the better half of the industry: CODI outperforms 66.00% of its industry peers.
In the last couple of years the Gross Margin of CODI has grown nicely.
| 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.
CODI has a worse debt/assets ratio than last year.
2.2 Solvency
CODI has an Altman-Z score of 1.23. This is a bad value and indicates that CODI is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.23, CODI is doing good in the industry, outperforming 63.00% of the companies in the same industry.
A Debt/Equity ratio of 1.36 is on the high side and indicates that CODI has dependencies on debt financing.
CODI has a Debt to Equity ratio (1.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC1.07
WACC5.9%
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 better Current ratio (4.07) than 87.00% 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 better Quick ratio (1.57) than 70.00% 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.
The Revenue has grown by 32.23% in the past year. This is a very strong growth!
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
Based on estimates for the next years, CODI will show a small growth in Earnings Per Share. The EPS will grow by 0.89% on average per year.
CODI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.98% yearly.
EPS Next Y-7.96%
EPS Next 2Y0.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.41%
Revenue Next 2Y4.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 2.64 indicates a rather cheap valuation of CODI.
CODI's Price/Earnings ratio is rather cheap when compared to the industry. CODI is cheaper than 99.00% of the companies in the same industry.
CODI is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 2.87, the valuation of CODI can be described as very cheap.
Based on the Price/Forward Earnings ratio, CODI is valued cheaply inside the industry as 99.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.60. CODI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.64 | ||
| Fwd PE | 2.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 92.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y0.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.97%, CODI is a good candidate for dividend investing.
In the last 3 months the price of CODI has falen by -62.91%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CODI's Dividend Yield is rather good when compared to the industry average which is at 4.97. CODI pays more dividend than 98.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.97% |
5.2 History
The dividend of CODI decreases each year by -13.06%.
CODI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CODI decreased in the last 3 years.
Dividend Growth(5Y)-13.06%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
CODI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-79.81%
EPS Next 2Y0.89%
EPS Next 3YN/A
6.28
+0.14 (+2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.5%
Inst Owner Change0.46%
Ins Owners1.71%
Ins Owner Change0.02%
Market Cap472.51M
Analysts81.82
Price Target20.16 (221.02%)
Short Float %1.35%
Short Ratio0.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.97% |
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)-34.73%
PT rev (3m)-34.73%
EPS NQ rev (1m)-10.63%
EPS NQ rev (3m)-13.82%
EPS NY rev (1m)-11.81%
EPS NY rev (3m)-10.98%
Revenue NQ rev (1m)-5.71%
Revenue NQ rev (3m)-5.61%
Revenue NY rev (1m)-5.71%
Revenue NY rev (3m)-6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.64 | ||
| Fwd PE | 2.87 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.99 |
EPS(TTM)2.38
EY37.9%
EPS(NY)2.19
Fwd EY34.88%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)N/A
PEG (5Y)0.4
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%
ROICexcg growth 3Y-7.31%
ROICexcg 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 | 1.23 |
F-Score3
WACC5.9%
ROIC/WACC1.07
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 Y-7.96%
EPS Next 2Y0.89%
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 Year2.41%
Revenue Next 2Y4.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.44%
EBIT growth 3Y13.13%
EBIT growth 5Y32.84%
EBIT Next Year113.37%
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