Compass Diversified Fundamental Analysis (NYSE: CODI-PC)
Compass Diversified (NYSE: CODI-PC) shows moderate financial fundamentals with a PE ratio of -5.70, profit margin of -5.38%, and ROE of -21.01%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 4.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -8.7/100 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-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 -5.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CODI-PC's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Compass Diversified at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.65 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 $-5.38 as profit after all expenses.
Operating Margin
Core operations generate 4.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-21.01 in profit for every $100 of shareholder equity.
ROA
Compass Diversified generates $-3.50 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 $111.29M, signaling weaker underlying cash strength.
Free Cash Flow
Compass Diversified produces free cash flow of $79.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.06 in free cash annually.
FCF Yield
CODI-PC converts 8.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.21
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CODI-PC Stacks Against Its Sector Peers
| Metric | CODI-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.70 | 29.88 | Better (Cheaper) |
| ROE | -21.01% | 1106.00% | Weak |
| Net Margin | -5.38% | -23408.00% (disorted) | Weak |
| Debt/Equity | 3.70 | 0.94 | Weak (High Leverage) |
| Current Ratio | 2.26 | 21.64 | Strong Liquidity |
| ROA | -3.50% | -1320888.00% (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
8.63%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
-944.98%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-103.86%
Industry Style: Cyclical, Value, Infrastructure
Declining