Compass, Inc. Fundamental Analysis (NYSE: COMP)
Compass, Inc. (NYSE: COMP) shows weak financial fundamentals with a PE ratio of 186.72, profit margin of 0.63%, and ROE of 3.63%. The company generates $8.5B in annual revenue with strong year-over-year growth of 23.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COMP's fundamental strength across five key dimensions:
Efficiency Score
WeakCOMP struggles to generate sufficient returns from assets.
Valuation Score
ModerateCOMP shows balanced valuation metrics.
Growth Score
ExcellentCOMP delivers strong and consistent growth momentum.
Financial Health Score
ModerateCOMP shows balanced financial health with some risks.
Profitability Score
WeakCOMP struggles to sustain strong margins.
Key Financial Metrics
Is COMP Expensive or Cheap?
P/E Ratio
COMP trades at 186.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COMP's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Compass, Inc. at 3.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 39.47 times EBITDA. This signals the market has high growth expectations.
How Well Does COMP Make Money?
Net Profit Margin
For every $100 in sales, Compass, Inc. keeps $0.63 as profit after all expenses.
Operating Margin
Core operations generate -0.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.63 in profit for every $100 of shareholder equity.
ROA
Compass, Inc. generates $0.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Compass, Inc. generates limited operating cash flow of $124.19M, signaling weaker underlying cash strength.
Free Cash Flow
Compass, Inc. generates weak or negative free cash flow of $102.53M, restricting financial flexibility.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
COMP converts 1.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
186.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How COMP Stacks Against Its Sector Peers
| Metric | COMP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 186.72 | 23.60 | Worse (Expensive) |
| ROE | 3.63% | 753.00% | Weak |
| Net Margin | 0.63% | 2518.00% | Weak |
| Debt/Equity | 1.38 | -36.91 (disorted) | Distorted |
| Current Ratio | 1.06 | 32.48 | Neutral |
| ROA | 0.80% | 251.00% | Weak |
COMP outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Compass, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.87%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
85.09%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
356.90%
Industry Style: Income, Inflation Hedge, REIT
High Growth