COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - NYSE:CODI - US20451Q1040 - Common Stock
7.3 USD
+0.28 (+3.99%)
7.14 USD
-0.16 (-2.19%)
We assign a fundamental rating of 5 out of 10 to CODI. CODI was compared to 101 industry peers in the Financial Services industry. CODI has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year CODI has reported a negative cash flow from operations.
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
CODI has a worse Return On Assets (-3.12%) than 85.15% of its industry peers.
Looking at the Return On Equity, with a value of -9.75%, CODI is doing worse than 82.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.33%, CODI is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
CODI had an Average Return On Invested Capital over the past 3 years of 4.59%. This is below the industry average of 7.64%.
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
Looking at the Operating Margin, with a value of 10.80%, CODI is in line with its industry, outperforming 43.56% of the companies in the same industry.
In the last couple of years the Operating Margin of CODI has grown nicely.
Looking at the Gross Margin, with a value of 45.63%, CODI is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
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) below the Cost of Capital (WACC), CODI is destroying value.
Compared to 1 year ago, CODI has about the same amount of shares outstanding.
CODI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CODI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that CODI is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.24, CODI is doing good in the industry, outperforming 64.36% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.85
WACC7.45%
2.3 Liquidity
A Current Ratio of 4.07 indicates that CODI has no problem at all paying its short term obligations.
CODI's Current ratio of 4.07 is amongst the best of the industry. CODI outperforms 89.11% 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 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.07 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
CODI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.10%, which is quite good.
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
The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
CODI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y4.43%
EPS Next 2Y8.23%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 3.07, which indicates a rather cheap valuation of CODI.
99.01% of the companies in the same industry are more expensive than CODI, based on the Price/Earnings ratio.
CODI is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 2.94 indicates a rather cheap valuation of CODI.
Based on the Price/Forward Earnings ratio, CODI is valued cheaper than 98.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CODI to the average of the S&P500 Index (22.71), we can say CODI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.07 | ||
| Fwd PE | 2.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaper than 93.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.14 |
4.3 Compensation for Growth
CODI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.69
PEG (5Y)0.47
EPS Next 2Y8.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CODI has a Yearly Dividend Yield of 10.04%, which is a nice return.
Compared to an average industry Dividend Yield of 4.86, CODI pays a better dividend. On top of this CODI pays more dividend than 95.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.04% |
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
CODI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-79.81%
EPS Next 2Y8.23%
EPS Next 3YN/A
7.3
+0.28 (+3.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners56.49%
Inst Owner Change3.93%
Ins Owners1.71%
Ins Owner Change0%
Market Cap549.25M
Analysts80
Price Target26.52 (263.29%)
Short Float %4.48%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.04% |
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)-2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.16%
EPS NY rev (1m)13.47%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)6.48%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.07 | ||
| Fwd PE | 2.94 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.14 |
EPS(TTM)2.38
EY32.6%
EPS(NY)2.49
Fwd EY34.05%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.69
PEG (5Y)0.47
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 | 1.24 |
F-Score3
WACC7.45%
ROIC/WACC0.85
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 Y4.43%
EPS Next 2Y8.23%
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 Year121.74%
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