Compass Diversified
Compass Diversified Fundamental Analysis
Compass Diversified (CODI-PC) shows moderate financial fundamentals with a PE ratio of -2.64, profit margin of -12.08%, and ROE of -40.36%. The company generates $1.9B 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-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakCODI-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCODI-PC trades at attractive valuation levels.
Growth Score
ModerateCODI-PC shows steady but slowing expansion.
Financial Health Score
ModerateCODI-PC shows balanced financial health with some risks.
Profitability Score
WeakCODI-PC struggles to sustain strong margins.
Key Financial Metrics
Is CODI-PC Expensive or Cheap?
P/E Ratio
CODI-PC trades at -2.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CODI-PC's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Compass Diversified at 1.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -76.60 times EBITDA. This is generally considered low.
How Well Does CODI-PC 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 $-6.83M, signaling weaker underlying cash strength.
Free Cash Flow
Compass Diversified generates weak or negative free cash flow of $-51.14M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.68 in free cash annually.
FCF Yield
CODI-PC converts -8.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.32
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-PC Stacks Against Its Sector Peers
| Metric | CODI-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.64 | 25.55 | Better (Cheaper) |
| ROE | -40.36% | 1262.00% | Weak |
| Net Margin | -12.08% | -42065.00% (disorted) | Weak |
| Debt/Equity | 4.25 | 0.79 | Weak (High Leverage) |
| Current Ratio | 2.42 | 10.09 | Strong Liquidity |
| ROA | -7.45% | -1502268.00% (disorted) | Weak |
CODI-PC 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