COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CODI - US20451Q1040 - Common Stock
5.39 USD
+0.16 (+3.06%)
5.35 USD
-0.04 (-0.74%)
We assign a fundamental rating of 4 out of 10 to CODI. CODI was compared to 98 industry peers in the Financial Services industry. CODI has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on CODI.
1. Profitability
1.1 Basic Checks
- CODI had positive earnings in the past year.
- CODI had a negative operating cash flow in the past year.
- 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's Return On Assets of -3.12% is on the low side compared to the rest of the industry. CODI is outperformed by 83.67% of its industry peers.
- CODI's Return On Equity of -9.75% is on the low side compared to the rest of the industry. CODI is outperformed by 79.59% 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 8.44%.
- 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
- CODI's Operating Margin of 10.80% is in line compared to the rest of the industry. CODI outperforms 43.88% of its industry peers.
- In the last couple of years the Operating Margin of CODI has grown nicely.
- The Gross Margin of CODI (45.63%) is better than 66.33% of its industry peers.
- 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 below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, CODI has about the same amount of shares outstanding.
- Compared to 5 years ago, CODI has more shares outstanding
- Compared to 1 year ago, CODI has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.22, we must say that CODI is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.22, CODI is doing good in the industry, outperforming 63.27% of the companies in the same industry.
- CODI has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
- CODI has a Debt to Equity ratio of 1.36. This is in the lower half of the industry: CODI underperforms 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC0.91
WACC6.92%
2.3 Liquidity
- A Current Ratio of 4.07 indicates that CODI has no problem at all paying its short term obligations.
- The Current ratio of CODI (4.07) is better than 87.76% of its industry peers.
- A Quick Ratio of 1.57 indicates that CODI should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.57, CODI is doing good in 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.
- The Revenue is expected to grow by 6.13% on average over the next years.
EPS Next Y3.29%
EPS Next 2Y6.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y6.13%
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 stable.
- 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
- The Price/Earnings ratio is 2.26, which indicates a rather cheap valuation of CODI.
- CODI's Price/Earnings ratio is rather cheap when compared to the industry. CODI is cheaper than 98.98% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CODI to the average of the S&P500 Index (27.33), we can say CODI is valued rather cheaply.
- A Price/Forward Earnings ratio of 2.19 indicates a rather cheap valuation of CODI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 100.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. CODI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.26 | ||
| Fwd PE | 2.19 |
4.2 Price Multiples
- CODI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CODI is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.86 |
4.3 Compensation for Growth
- The 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)0.34
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 10.30%, CODI is a good candidate for dividend investing.
- In the last 3 months the price of CODI has falen by -26.16%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 2.49, CODI pays a better dividend. On top of this CODI pays more dividend than 97.96% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.3% |
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
- The earnings of CODI are negative and hence is the payout ratio. CODI will probably not be able to sustain this dividend level.
DP-79.81%
EPS Next 2Y6.97%
EPS Next 3YN/A
5.39
+0.16 (+3.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners67.7%
Inst Owner Change0.02%
Ins Owners1.71%
Ins Owner Change0%
Market Cap405.54M
Revenue(TTM)2.72B
Net Income(TTM)-126.49M
Analysts80
Price Target22.44 (316.33%)
Short Float %8.02%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.3% |
Yearly Dividend1.34
Dividend Growth(5Y)-13.06%
DP-79.81%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)-15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.26 | ||
| Fwd PE | 2.19 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.86 |
EPS(TTM)2.38
EY44.16%
EPS(NY)2.46
Fwd EY45.61%
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)0.34
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
WACC6.92%
ROIC/WACC0.91
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 2Y6.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.44%
EBIT growth 3Y13.13%
EBIT growth 5Y32.84%
EBIT Next Year78%
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 4 / 10 to CODI.
Can you provide the valuation status for COMPASS DIVERSIFIED HOLDINGS?
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 2.26 and the Price/Book (PB) ratio is 0.31.
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%.