COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
NYSE:CODI - New York Stock Exchange, Inc. - US20451Q1040 - Common Stock - Currency: USD
Taking everything into account, CODI scores 4 out of 10 in our fundamental rating. CODI was compared to 101 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CODI was profitable.
CODI had a negative operating cash flow in the past year.
CODI had positive earnings in 4 of the past 5 years.
Of the past 5 years CODI 4 years had a positive operating cash flow.
1.2 Ratios
CODI's Return On Assets of -0.37% is on the low side compared to the rest of the industry. CODI is outperformed by 78.22% of its industry peers.
With a Return On Equity value of -1.19%, CODI is not doing good in the industry: 74.26% of the companies in the same industry are doing better.
CODI has a Return On Invested Capital of 5.63%. This is in the better half of the industry: CODI outperforms 73.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CODI is below the industry average of 7.75%.
The last Return On Invested Capital (5.63%) for CODI is above the 3 year average (4.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -1.19% | ||
| ROIC | 5.63% |
ROA(3y)2.33%
ROA(5y)3.67%
ROE(3y)6.72%
ROE(5y)7.81%
ROIC(3y)4.47%
ROIC(5y)3.8%
1.3 Margins
With a Operating Margin value of 9.88%, CODI perfoms like the industry average, outperforming 42.57% 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 45.51%. This is in the better half of the industry: CODI outperforms 67.33% of its industry peers.
In the last couple of years the Gross Margin of CODI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.88% | ||
| PM (TTM) | N/A | ||
| GM | 45.51% |
OM growth 3Y15.15%
OM growth 5Y15.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.57%
GM growth 5Y4.62%
2. Health
2.1 Basic Checks
CODI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CODI has been increased compared to 1 year ago.
Compared to 5 years ago, CODI has more shares outstanding
Compared to 1 year ago, CODI has an improved debt to assets ratio.
2.2 Solvency
CODI has an Altman-Z score of 1.44. This is a bad value and indicates that CODI is not financially healthy and even has some risk of bankruptcy.
CODI's Altman-Z score of 1.44 is fine compared to the rest of the industry. CODI outperforms 68.32% of its industry peers.
CODI has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
CODI's Debt to Equity ratio of 1.43 is on the low side compared to the rest of the industry. CODI is outperformed by 60.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.55
WACC10.15%
2.3 Liquidity
CODI has a Current Ratio of 4.22. This indicates that CODI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.22, CODI belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that CODI should not have too much problems paying its short term obligations.
CODI has a Quick ratio of 1.62. This is in the better half of the industry: CODI outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.90% 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 5.62% on average per year.
The Revenue has grown by 16.40% 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 8.69% on average per year.
EPS 1Y (TTM)19.9%
EPS 3Y5.82%
EPS 5Y5.62%
EPS Q2Q%12.28%
Revenue 1Y (TTM)16.4%
Revenue growth 3Y12.46%
Revenue growth 5Y8.69%
Sales Q2Q%2.29%
3.2 Future
Based on estimates for the next years, CODI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.71% on average per year.
CODI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y8.97%
EPS Next 2Y9.56%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue Next Year2.97%
Revenue Next 2Y5.84%
Revenue Next 3Y6%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
CODI is valuated reasonably with a Price/Earnings ratio of 9.08.
73.27% 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 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.45, which indicates a very decent valuation of CODI.
Based on the Price/Forward Earnings ratio, CODI is valued a bit cheaper than the industry average as 67.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CODI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
CODI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.01
PEG (5Y)1.62
EPS Next 2Y9.56%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.77%, CODI is a good candidate for dividend investing.
CODI's Dividend Yield is rather good when compared to the industry average which is at 3.86. CODI pays more dividend than 88.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
The dividend of CODI decreases each year by -4.51%.
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)-4.51%
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.
DP-675.64%
EPS Next 2Y9.56%
EPS Next 3Y9.71%
20.8
-0.16 (-0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.14%
Inst Owner Change2.17%
Ins Owners1.81%
Ins Owner Change-1.01%
Market Cap1.57B
Analysts82.67
Price Target30.89 (48.51%)
Short Float %0.82%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend1.3
Dividend Growth(5Y)-4.51%
DP-675.64%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.99%
Min EPS beat(2)16.19%
Max EPS beat(2)29.78%
EPS beat(4)4
Avg EPS beat(4)20.34%
Min EPS beat(4)2.16%
Max EPS beat(4)33.23%
EPS beat(8)7
Avg EPS beat(8)19.04%
EPS beat(12)11
Avg EPS beat(12)21.88%
EPS beat(16)15
Avg EPS beat(16)29.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-3.3%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.58%
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)4
Avg Revenue beat(12)-0.21%
Revenue beat(16)6
Avg Revenue beat(16)0.2%
PT rev (1m)0%
PT rev (3m)5.65%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.35 |
EPS(TTM)2.29
EY11.01%
EPS(NY)2.46
Fwd EY11.83%
FCF(TTM)-1.36
FCFYN/A
OCF(TTM)-0.75
OCFYN/A
SpS34.33
BVpS16.35
TBVpS-10.97
PEG (NY)1.01
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -1.19% | ||
| ROCE | 7.12% | ||
| ROIC | 5.63% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 13.86% | ||
| OM | 9.88% | ||
| PM (TTM) | N/A | ||
| GM | 45.51% | ||
| FCFM | N/A |
ROA(3y)2.33%
ROA(5y)3.67%
ROE(3y)6.72%
ROE(5y)7.81%
ROIC(3y)4.47%
ROIC(5y)3.8%
ROICexc(3y)4.79%
ROICexc(5y)4.05%
ROICexgc(3y)13.53%
ROICexgc(5y)11.48%
ROCE(3y)5.66%
ROCE(5y)4.81%
ROICexcg growth 3Y9.51%
ROICexcg growth 5Y20.37%
ROICexc growth 3Y16.84%
ROICexc growth 5Y16.51%
OM growth 3Y15.15%
OM growth 5Y15.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.57%
GM growth 5Y4.62%
F-Score4
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 33.91% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.22 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 1.44 |
F-Score4
WACC10.15%
ROIC/WACC0.55
Cap/Depr(3y)39.81%
Cap/Depr(5y)37.86%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.9%
EPS 3Y5.82%
EPS 5Y5.62%
EPS Q2Q%12.28%
EPS Next Y8.97%
EPS Next 2Y9.56%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue 1Y (TTM)16.4%
Revenue growth 3Y12.46%
Revenue growth 5Y8.69%
Sales Q2Q%2.29%
Revenue Next Year2.97%
Revenue Next 2Y5.84%
Revenue Next 3Y6%
Revenue Next 5YN/A
EBIT growth 1Y31.14%
EBIT growth 3Y29.49%
EBIT growth 5Y26.01%
EBIT Next Year135.31%
EBIT Next 3Y41.36%
EBIT Next 5YN/A
FCF growth 1Y1.23%
FCF growth 3Y-42.58%
FCF growth 5Y-19.06%
OCF growth 1Y-6.86%
OCF growth 3Y-19.31%
OCF growth 5Y-7.37%