Composecure Stock Buy Hold or Sell Recommendation

CMPO Stock  USD 11.02  0.63  6.06%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding CompoSecure is 'Hold'. The recommendation algorithm takes into account all of CompoSecure's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out CompoSecure Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in CompoSecure Stock, please use our How to Invest in CompoSecure guide.
In addition, we conduct extensive research on individual companies such as CompoSecure and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards CompoSecure. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Execute CompoSecure Buy or Sell Advice

The CompoSecure recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CompoSecure. Macroaxis does not own or have any residual interests in CompoSecure or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CompoSecure's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell CompoSecureBuy CompoSecure
Hold

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon CompoSecure has a Risk Adjusted Performance of (0.06), Jensen Alpha of (0.09), Total Risk Alpha of 0.1274 and Treynor Ratio of (0.16)
Our trade advice tool can cross-verify current analyst consensus on CompoSecure and to analyze the company potential to grow in the current economic cycle. To make sure CompoSecure is not overpriced, please confirm all CompoSecure fundamentals, including its revenue, short ratio, net asset, as well as the relationship between the cash per share and market capitalization . Given that CompoSecure has a number of shares shorted of 6.4 M, we suggest you to validate CompoSecure market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

CompoSecure Trading Alerts and Improvement Suggestions

CompoSecure generated a negative expected return over the last 90 days
CompoSecure has high historical volatility and very poor performance
The company reported the previous year's revenue of 420.57 M. Net Loss for the year was (83.16 M) with profit before overhead, payroll, taxes, and interest of 219.23 M.
CompoSecure has a poor financial position based on the latest SEC disclosures
About 55.0% of the company shares are held by institutions such as insurance companies
Latest headline from thelincolnianonline.com: 12th Street Asset Management Company LLC Buys New Stake in CompoSecure, Inc.

CompoSecure Returns Distribution Density

The distribution of CompoSecure's historical returns is an attempt to chart the uncertainty of CompoSecure's future price movements. The chart of the probability distribution of CompoSecure daily returns describes the distribution of returns around its average expected value. We use CompoSecure price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CompoSecure returns is essential to provide solid investment advice for CompoSecure.
Mean Return
-0.25
Value At Risk
-5.34
Potential Upside
4.24
Standard Deviation
3.10
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CompoSecure historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

CompoSecure Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument, such as CompoSecure, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading CompoSecure back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
Shares
Arrowstreet Capital Limited Partnership2024-12-31
1.6 M
Zuckerman Investment Group, Llc2024-12-31
1.5 M
Vanguard Group Inc2024-12-31
1.4 M
Woodson Capital Management, Lp2024-12-31
1.2 M
Divisadero Street Capital Management, Lp2024-12-31
M
Nine Ten Capital Management Llc2024-12-31
908.3 K
D. E. Shaw & Co Lp2024-12-31
766.1 K
State Street Corp2024-12-31
724.5 K
Amvescap Plc.2024-12-31
723.1 K
Ubs Group Ag2024-12-31
4.6 M
Locust Wood Capital Advisers, Llc2024-12-31
4.6 M
Note, although CompoSecure's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

CompoSecure Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(12.9M)3.7M(18.2M)(9.0M)(294K)(308.7K)
Investments(7.5M)(4.8M)(9.1M)(8.5M)(9.9M)(10.4M)
Change In Cash(13.3M)8.5M(8.3M)27.6M36.2M38.1M
Net Borrowings47M127M130.5M(31.9M)(28.7M)(27.3M)
Free Cash Flow79.6M73M83.7M93.4M122.1M86.9M
Depreciation9.9M10.4M8.6M8.4M9.2M9.8M
Other Non Cash Items842K(10.5M)(38.5M)71.5M172.8M181.5M
Dividends Paid216.7M218M36.3M38.4M(8.9M)(8.5M)
Capital Expenditures7.5M4.8M9.1M10.9M7.4M6.7M
Net Income77.8M83.4M131.8M19.2M(83.2M)(79.0M)
End Period Cash Flow13.4M21.9M13.6M41.2M77.5M81.3M
Change To Netincome1.2M3.0M2.4M(2.9M)(2.6M)(2.5M)

CompoSecure Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CompoSecure or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CompoSecure's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CompoSecure stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.09
β
Beta against Dow Jones1.58
σ
Overall volatility
3.21
Ir
Information ratio -0.05

CompoSecure Volatility Alert

CompoSecure exhibits very low volatility with skewness of 0.0 and kurtosis of 1.14. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CompoSecure's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CompoSecure's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

CompoSecure Fundamentals Vs Peers

Comparing CompoSecure's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CompoSecure's direct or indirect competition across all of the common fundamentals between CompoSecure and the related equities. This way, we can detect undervalued stocks with similar characteristics as CompoSecure or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CompoSecure's fundamental indicators could also be used in its relative valuation, which is a method of valuing CompoSecure by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare CompoSecure to competition
FundamentalsCompoSecurePeer Average
Return On Asset0.2-0.14
Profit Margin(0.13) %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation1.19 B16.62 B
Shares Outstanding102.31 M571.82 M
Shares Owned By Insiders56.78 %10.09 %
Shares Owned By Institutions55.41 %39.21 %
Number Of Shares Shorted6.4 M4.71 M
Price To Sales2.68 X11.42 X
Revenue420.57 M9.43 B
Gross Profit219.23 M27.38 B
EBITDA(51.62 M)3.9 B
Net Income(83.16 M)570.98 M
Cash And Equivalents13.39 M2.7 B
Cash Per Share0.89 X5.01 X
Total Debt17.25 M5.32 B
Current Ratio2.30 X2.16 X
Book Value Per Share(1.43) X1.93 K
Cash Flow From Operations129.55 M971.22 M
Short Ratio5.63 X4.00 X
Earnings Per Share(1.22) X3.12 X
Target Price15.31
Number Of Employees1 K18.84 K
Beta0.81-0.15
Market Capitalization1.13 B19.03 B
Total Asset473.92 M29.47 B
Retained Earnings(507.38 M)9.33 B
Working Capital97.58 M1.48 B
Annual Yield0.05 %
Net Asset473.92 M
Note: Disposition of 18818 shares by Adam Lowe of CompoSecure at 10.97 subject to Rule 16b-3 [view details]

CompoSecure Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as CompoSecure . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About CompoSecure Buy or Sell Advice

When is the right time to buy or sell CompoSecure? Buying financial instruments such as CompoSecure Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having CompoSecure in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Strategy ETFs Theme or any other thematic opportunities.
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When determining whether CompoSecure is a strong investment it is important to analyze CompoSecure's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CompoSecure's future performance. For an informed investment choice regarding CompoSecure Stock, refer to the following important reports:
Check out CompoSecure Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in CompoSecure Stock, please use our How to Invest in CompoSecure guide.
You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CompoSecure. If investors know CompoSecure will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CompoSecure listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.105
Earnings Share
(1.22)
Revenue Per Share
9.556
Quarterly Revenue Growth
0.01
Return On Assets
0.1993
The market value of CompoSecure is measured differently than its book value, which is the value of CompoSecure that is recorded on the company's balance sheet. Investors also form their own opinion of CompoSecure's value that differs from its market value or its book value, called intrinsic value, which is CompoSecure's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CompoSecure's market value can be influenced by many factors that don't directly affect CompoSecure's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CompoSecure's value and its price as these two are different measures arrived at by different means. Investors typically determine if CompoSecure is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CompoSecure's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.