COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - NYSE:CODI - US20451Q1040 - Common Stock
7.3 USD
-0.18 (-2.41%)
7.23 USD
-0.07 (-0.96%)
We assign a fundamental rating of 5 out of 10 to CODI. CODI was compared to 98 industry peers in the Financial Services industry. While CODI is still in line with the averages on profitability rating, there are concerns on its financial health. CODI has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: CODI reported negative net income in multiple 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 84.85% of the companies in the same industry.
CODI's Return On Equity of -9.75% is on the low side compared to the rest of the industry. CODI is outperformed by 81.82% of its industry peers.
The Return On Invested Capital of CODI (6.33%) is better than 71.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CODI is below the industry average of 7.79%.
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
With a Operating Margin value of 10.80%, CODI perfoms like the industry average, outperforming 43.43% of the companies in the same industry.
CODI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 45.63%, CODI is doing good in the industry, outperforming 64.65% 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
CODI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CODI remains at a similar level compared to 1 year ago.
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
CODI has an Altman-Z score of 1.25. 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 (1.25) is better than 64.65% 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 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC1.05
WACC6.03%
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 88.89% of its industry peers.
A Quick Ratio of 1.57 indicates that CODI should not have too much problems paying its short term obligations.
The Quick ratio of CODI (1.57) is better than 68.69% 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.
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 6.97% on average per year.
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 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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CODI is valuated cheaply with a Price/Earnings ratio of 3.07.
Based on the Price/Earnings ratio, CODI is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CODI to the average of the S&P500 Index (27.40), we can say CODI is valued rather cheaply.
The Price/Forward Earnings ratio is 2.97, which indicates a rather cheap valuation of CODI.
Based on the Price/Forward Earnings ratio, CODI is valued cheaper than 97.98% of the companies in the same industry.
CODI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.07 | ||
| Fwd PE | 2.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.22 |
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)0.93
PEG (5Y)0.47
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.26%, CODI is a good candidate for dividend investing.
CODI's Dividend Yield is rather good when compared to the industry average which is at 4.89. CODI pays more dividend than 94.95% of the companies in the same industry.
CODI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.26% |
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
CODI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-79.81%
EPS Next 2Y6.97%
EPS Next 3YN/A
7.3
-0.18 (-2.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change-0.04%
Ins Owners1.71%
Ins Owner Change0%
Market Cap549.25M
Analysts80
Price Target26.52 (263.29%)
Short Float %4.88%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.26% |
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)31.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.71%
EPS NY rev (1m)-1.09%
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 | 3.07 | ||
| Fwd PE | 2.97 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.22 |
EPS(TTM)2.38
EY32.6%
EPS(NY)2.46
Fwd EY33.67%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.93
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 | 1.25 |
F-Score3
WACC6.03%
ROIC/WACC1.05
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