Compass Diversified Fundamental Analysis
Compass Diversified (CODI-PA) shows weak financial fundamentals with a PE ratio of -2.59, profit margin of -12.30%, and ROE of -46.27%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -56.6/100 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
WeakCODI-PA faces weak or negative growth trends.
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 -2.59 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CODI-PA's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Compass Diversified at 1.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -34.78 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 $-12.30 as profit after all expenses.
Operating Margin
Core operations generate 1.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-46.27 in profit for every $100 of shareholder equity.
ROA
Compass Diversified generates $-7.67 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 $19.66M, signaling weaker underlying cash strength.
Free Cash Flow
Compass Diversified generates weak or negative free cash flow of $4.28M, restricting financial flexibility.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
CODI-PA converts 1.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.46
vs 25 benchmark
ROA
Return on assets percentage
-0.08
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How CODI-PA Stacks Against Its Sector Peers
| Metric | CODI-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.59 | 30.72 | Better (Cheaper) |
| ROE | -46.27% | 1100.00% | Weak |
| Net Margin | -12.30% | -20665.00% (disorted) | Weak |
| Debt/Equity | 4.64 | 0.48 | Weak (High Leverage) |
| Current Ratio | 2.67 | 21.37 | Strong Liquidity |
| ROA | -7.67% | -1299414.00% (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
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure