COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CODI - US20451Q1040 - Common Stock
5.73 USD
-1.65 (-22.36%)
5.8009 USD
+0.07 (+1.24%)
We assign a fundamental rating of 5 out of 10 to CODI. CODI was compared to 98 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 84.69% of its industry peers.
CODI has a Return On Equity of -9.75%. This is amonst the worse of the industry: CODI underperforms 80.61% of its industry peers.
CODI's Return On Invested Capital of 6.33% is fine compared to the rest of the industry. CODI outperforms 70.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CODI is below the industry average of 8.20%.
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
With a Operating Margin value of 10.80%, CODI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
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 67.35% 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.
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.
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.
Looking at the Altman-Z score, with a value of 1.22, CODI is in the better half of the industry, outperforming 62.24% 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.
Looking at the Debt to Equity ratio, with a value of 1.36, CODI is doing worse than 60.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.03
WACC6.12%
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's Current ratio of 4.07 is amongst the best of the industry. CODI outperforms 86.73% of its industry peers.
CODI has a Quick Ratio of 1.57. This is a normal value and indicates that CODI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.57, CODI is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
| 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.
Measured over the past 5 years, CODI shows a small growth in Earnings Per Share. The EPS has been growing by 6.59% on average per year.
The Revenue has grown by 32.23% in the past year. This is a very strong growth!
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)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 6.97% on average over the next years.
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.
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 2.41, which indicates a rather cheap valuation of CODI.
Compared to the rest of the industry, the Price/Earnings ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 98.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, CODI is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.33, 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 100.00% of the companies are valued more expensively.
CODI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.41 | ||
| Fwd PE | 2.33 |
4.2 Price Multiples
91.84% of the companies in the same industry are more expensive than CODI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.92 |
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)0.73
PEG (5Y)0.37
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.73%, CODI is a good candidate for dividend investing.
The stock price of CODI dropped by -21.29% 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 4.73. CODI pays more dividend than 94.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.73% |
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 2Y6.97%
EPS Next 3YN/A
5.73
-1.65 (-22.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners67.44%
Inst Owner Change4.66%
Ins Owners1.71%
Ins Owner Change0%
Market Cap431.13M
Revenue(TTM)2.72B
Net Income(TTM)-126.49M
Analysts80
Price Target22.44 (291.62%)
Short Float %6.75%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.73% |
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)-15.38%
PT rev (3m)-15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.41 | ||
| Fwd PE | 2.33 | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.92 |
EPS(TTM)2.38
EY41.54%
EPS(NY)2.46
Fwd EY42.9%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.73
PEG (5Y)0.37
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
WACC6.12%
ROIC/WACC1.03
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 2.41 and the Price/Book (PB) ratio is 0.33.
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%.