Compass Diversified
Compass Diversified Fundamental Analysis
Compass Diversified (CODI-PB) shows moderate financial fundamentals with a PE ratio of -2.11, profit margin of -12.12%, and ROE of -40.47%. The company generates $0.7B 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 -28.7/100 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-PB's fundamental strength across five key dimensions:
Efficiency Score
WeakCODI-PB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCODI-PB trades at attractive valuation levels.
Growth Score
ModerateCODI-PB shows steady but slowing expansion.
Financial Health Score
ModerateCODI-PB shows balanced financial health with some risks.
Profitability Score
WeakCODI-PB struggles to sustain strong margins.
Key Financial Metrics
Is CODI-PB Expensive or Cheap?
P/E Ratio
CODI-PB trades at -2.11 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CODI-PB's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Compass Diversified at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -84.16 times EBITDA. This is generally considered low.
How Well Does CODI-PB Make Money?
Net Profit Margin
For every $100 in sales, Compass Diversified keeps $-12.12 as profit after all expenses.
Operating Margin
Core operations generate 2.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-40.47 in profit for every $100 of shareholder equity.
ROA
Compass Diversified generates $-7.47 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 $-2.62M, signaling weaker underlying cash strength.
Free Cash Flow
Compass Diversified generates weak or negative free cash flow of $-19.58M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.68 in free cash annually.
FCF Yield
CODI-PB converts -10.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.26
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
0.02
vs 25 benchmark
How CODI-PB Stacks Against Its Sector Peers
| Metric | CODI-PB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.11 | 26.32 | Better (Cheaper) |
| ROE | -40.47% | 1290.00% | Weak |
| Net Margin | -12.12% | -43768.00% (disorted) | Weak |
| Debt/Equity | 4.25 | 116.05 | Strong (Low Leverage) |
| Current Ratio | 2.42 | 10.65 | Strong Liquidity |
| ROA | -7.47% | -1541671.00% (disorted) | Weak |
CODI-PB outperforms its industry in 3 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