Taking everything into account, CODI scores 3 out of 10 in our fundamental rating. CODI was compared to 97 industry peers in the Financial Services industry. Both the profitability and financial health of CODI have multiple concerns. CODI is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CODI has reported negative net income.
CODI had a negative operating cash flow in the past year.
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

CODI has a worse Return On Assets (-3.12%) than 83.51% of its industry peers.
CODI has a worse Return On Equity (-9.75%) than 79.38% of its industry peers.
CODI has a Return On Invested Capital of 6.33%. This is in the better half of the industry: CODI outperforms 71.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CODI is below the industry average of 8.46%.
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

CODI has a Operating Margin (10.80%) which is comparable to the rest of the industry.
CODI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.63%, CODI is in the better half of the industry, outperforming 65.98% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CODI is destroying value.
CODI has about the same amout of shares outstanding than it did 1 year ago.
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

Based on the Altman-Z score of 1.23, we must say that CODI is in the distress zone and has some risk of bankruptcy.
CODI has a Altman-Z score of 1.23. This is in the better half of the industry: CODI outperforms 61.86% 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.
The Debt to Equity ratio of CODI (1.36) is worse than 61.86% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.36
Debt/FCF	N/A
Altman-Z	1.23

ROIC/WACC0.88

WACC7.2%

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 88.66% 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 74.23% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.07
Quick Ratio	1.57

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CODI have decreased strongly by -109.34% in the last year.
CODI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.59% yearly.
The Revenue has grown by 11.87% in the past year. This is quite good.
Measured over the past years, CODI shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.

EPS 1Y (TTM)-109.34%

EPS 3Y-4.24%

EPS 5Y6.59%

EPS Q2Q%-209.37%

Revenue 1Y (TTM)11.87%

Revenue growth 3Y4.39%

Revenue growth 5Y11.72%

Sales Q2Q%-18.89%

3.2 Future

CODI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -55.84% yearly.
Based on estimates for the next years, CODI will show a decrease in Revenue. The Revenue will decrease by -8.70% on average per year.

EPS Next Y-130%

EPS Next 2Y-55.84%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-16.72%

Revenue Next 2Y-8.7%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for CODI. In the last year negative earnings were reported.
Also next year CODI is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaper than 90.72% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	4.98

4.3 Compensation for Growth

CODI's earnings are expected to decrease with -55.84% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-55.84%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.11%, CODI is a good candidate for dividend investing.
CODI's Dividend Yield is rather good when compared to the industry average which is at 2.09. CODI pays more dividend than 96.91% of the companies in the same industry.
CODI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	10.11%

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.
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

The earnings of CODI are negative and hence is the payout ratio. CODI will probably not be able to sustain this dividend level.
The Dividend Rate of CODI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.

DP-79.81%

EPS Next 2Y-55.84%

EPS Next 3YN/A

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COMPASS DIVERSIFIED HOLDINGS / CODI FAQ

What is the fundamental rating for CODI stock?

ChartMill assigns a fundamental rating of 3 / 10 to CODI.

Can you provide the valuation status for COMPASS DIVERSIFIED HOLDINGS?

ChartMill assigns a valuation rating of 1 / 10 to COMPASS DIVERSIFIED HOLDINGS (CODI). This can be considered as Overvalued.

How profitable is COMPASS DIVERSIFIED HOLDINGS (CODI) stock?

COMPASS DIVERSIFIED HOLDINGS (CODI) has a profitability rating of 3 / 10.

How sustainable is the dividend of COMPASS DIVERSIFIED HOLDINGS (CODI) stock?

The dividend rating of COMPASS DIVERSIFIED HOLDINGS (CODI) is 5 / 10 and the dividend payout ratio is -79.81%.