COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CODI - US20451Q1040 - Common Stock
5.76 USD
+0.39 (+7.26%)
5.83 USD
+0.07 (+1.22%)
CODI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. There are concerns on the financial health of CODI while its profitability can be described as average. While showing a medium growth rate, CODI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- CODI had positive earnings in the past year.
- 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 83.51% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -9.75%, CODI is doing worse than 79.38% of the companies in the same industry.
- The Return On Invested Capital of CODI (6.33%) is better than 70.10% of its industry peers.
- CODI had an Average Return On Invested Capital over the past 3 years of 4.59%. This 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 has a Operating Margin of 10.80%. This is comparable to the rest of the industry: CODI outperforms 43.30% of its industry peers.
- In the last couple of years the Operating Margin of CODI has grown nicely.
- CODI has a better Gross Margin (45.63%) than 65.98% 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
- CODI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CODI has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CODI has more shares outstanding
- The debt/assets ratio for CODI is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 1.22, CODI is in the better half of the industry, outperforming 62.89% 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.
- CODI has a worse Debt to Equity ratio (1.36) than 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC0.9
WACC7.05%
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 better Current ratio (4.07) than 88.66% 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.
- With a decent Quick ratio value of 1.57, CODI is doing good in the industry, outperforming 74.23% 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 11.87% in the past year. This is quite good.
- 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%N/A
Revenue 1Y (TTM)11.87%
Revenue growth 3Y4.39%
Revenue growth 5Y11.72%
Sales Q2Q%-18.89%
3.2 Future
- The Earnings Per Share is expected to decrease by -55.84% on average over the next years. This is quite bad
- The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y-130%
EPS Next 2Y-55.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.22%
Revenue Next 2Y2.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- With a Price/Earnings ratio of 2.42, the valuation of CODI can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 98.97% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, CODI is valued rather cheaply.
- The Forward Price/Earnings Ratio is negative for CODI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.42 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 93.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.86 |
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)0.37
EPS Next 2Y-55.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 10.19%, CODI is a good candidate for dividend investing.
- In the last 3 months the price of CODI has falen by -28.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- CODI's Dividend Yield is rather good when compared to the industry average which is at 2.24. CODI pays more dividend than 97.94% of the companies in the same industry.
- CODI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.19% |
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.
- CODI has decreased its dividend 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.
- 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
5.76
+0.39 (+7.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)12-29 2025-12-29/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners67.7%
Inst Owner Change0.06%
Ins Owners1.71%
Ins Owner Change0%
Market Cap433.38M
Revenue(TTM)2.20B
Net Income(TTM)-126.49M
Analysts80
Price Target22.44 (289.58%)
Short Float %7.89%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.19% |
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)-129.05%
EPS NY rev (3m)-129.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.42 | ||
| Fwd PE | N/A | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.86 |
EPS(TTM)2.38
EY41.32%
EPS(NY)-1.02
Fwd EYN/A
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)N/A
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
WACC7.05%
ROIC/WACC0.9
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%N/A
EPS Next Y-130%
EPS Next 2Y-55.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.87%
Revenue growth 3Y4.39%
Revenue growth 5Y11.72%
Sales Q2Q%-18.89%
Revenue Next Year9.22%
Revenue Next 2Y2.93%
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 3 / 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 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 2.42 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%.