Compass Diversified
Compass Diversified Fundamental Analysis
Compass Diversified (CODI-PA) shows moderate financial fundamentals with a PE ratio of -3.80, profit margin of -12.08%, and ROE of -40.36%. The company generates $0.8B in annual revenue with strong year-over-year growth of 11.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -28.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CODI-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakCODI-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCODI-PA trades at attractive valuation levels.
Growth Score
ModerateCODI-PA shows steady but slowing expansion.
Financial Health Score
ModerateCODI-PA shows balanced financial health with some risks.
Profitability Score
WeakCODI-PA struggles to sustain strong margins.
Key Financial Metrics
Is CODI-PA Expensive or Cheap?
P/E Ratio
CODI-PA trades at -3.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CODI-PA's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Compass Diversified at 1.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -60.02 times EBITDA. This is generally considered low.
How Well Does CODI-PA Make Money?
Net Profit Margin
For every $100 in sales, Compass Diversified keeps $-12.08 as profit after all expenses.
Operating Margin
Core operations generate 0.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-40.36 in profit for every $100 of shareholder equity.
ROA
Compass Diversified generates $-7.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Compass Diversified generates limited operating cash flow of $-2.89M, signaling weaker underlying cash strength.
Free Cash Flow
Compass Diversified generates weak or negative free cash flow of $-21.65M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.68 in free cash annually.
FCF Yield
CODI-PA converts -5.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.40
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How CODI-PA Stacks Against Its Sector Peers
| Metric | CODI-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.80 | 26.93 | Better (Cheaper) |
| ROE | -40.36% | 1280.00% | Weak |
| Net Margin | -12.08% | -42031.00% (disorted) | Weak |
| Debt/Equity | 4.25 | 0.72 | Weak (High Leverage) |
| Current Ratio | 2.42 | 10.15 | Strong Liquidity |
| ROA | -7.45% | -1518926.00% (disorted) | Weak |
CODI-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Compass Diversified's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.33%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-96.63%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-163.50%
Industry Style: Cyclical, Value, Infrastructure
Declining