Compass Diversified Holdings Stock Buy Hold or Sell Recommendation
| CODI Stock | USD 19.11 0.09 0.47% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Compass Diversified Holdings is 'Hold'. The recommendation algorithm takes into account all of Compass Diversified's available fundamental, technical, and predictive indicators you will find on this site.
Check out Compass Diversified 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. In addition, we conduct extensive research on individual companies such as Compass and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Compass Diversified Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.
Compass |
Execute Compass Diversified Buy or Sell Advice
The Compass recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Compass Diversified Holdings. Macroaxis does not own or have any residual interests in Compass Diversified Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Compass Diversified's advice using the current market data and latest reported fundamentals.
Time Horizon
3 Months |
Risk Tolerance
I am an educated risk taker |
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Compass Diversified Trading Alerts and Improvement Suggestions
| Compass Diversified generated a negative expected return over the last 90 days | |
| Compass Diversified Holdings currently holds about 102.71 M in cash with (67.64 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.43. | |
| Compass Diversified has a frail financial position based on the latest SEC disclosures | |
| Roughly 63.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Compass Minerals Announces Cost Structure Reductions to Align With Current Business Needs |
Compass Diversified Returns Distribution Density
The distribution of Compass Diversified's historical returns is an attempt to chart the uncertainty of Compass Diversified's future price movements. The chart of the probability distribution of Compass Diversified daily returns describes the distribution of returns around its average expected value. We use Compass Diversified Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Compass Diversified returns is essential to provide solid investment advice for Compass Diversified.
| Mean Return | -0.3 |
| Value At Risk | -2.82 |
| Potential Upside | 1.99 |
| Standard Deviation | 1.89 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Compass Diversified 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.
Compass Stock Institutional Investors
| Shares | |||
| Manufacturers Life Insurance Co | 2024-12-31 | 1.1 M | |
| Royce & Associates, Lp | 2024-12-31 | 817 K | |
| Sei Investments Co | 2024-12-31 | 804.2 K | |
| Geode Capital Management, Llc | 2024-12-31 | 797.4 K | |
| Royal Bank Of Canada | 2024-12-31 | 737.2 K | |
| Blair William & Co | 2024-12-31 | 647.4 K | |
| Ubs Group Ag | 2024-12-31 | 619.5 K | |
| Legal & General Group Plc | 2024-12-31 | 576.8 K | |
| Northern Trust Corp | 2024-12-31 | 507.7 K | |
| Vanguard Group Inc | 2024-12-31 | 5.4 M | |
| American Century Companies Inc | 2024-12-31 | 5.3 M |
Compass Diversified Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Capital Expenditures | 30.8M | 39.9M | 64.3M | 55.8M | 56.7M | 59.5M | |
| Net Income | 27.1M | 24.9M | 42.0M | (38.7M) | 42.3M | 40.0M | |
| Change In Cash | (29.6M) | 90.0M | (99.5M) | 389.2M | (390.8M) | (371.2M) | |
| End Period Cash Flow | 70.7M | 160.7M | 61.3M | 450.5M | 59.7M | 92.5M | |
| Change To Inventory | (28.0M) | (106.4M) | (170.6M) | (58.3M) | (229.4M) | (217.9M) | |
| Free Cash Flow | 117.9M | 94.2M | (92.6M) | 22.3M | (124.3M) | (118.1M) | |
| Depreciation | 102.8M | 117.6M | 138.8M | 142.4M | 143.7M | 82.9M | |
| Other Non Cash Items | 7.2M | 71.3M | 33.7M | 138.8M | 40.8M | 42.9M | |
| Dividends Paid | 113.5M | 209.2M | 95.0M | 96.1M | 149.9M | 91.5M | |
| Change Receivables | 10.8M | (28.8M) | (30.5M) | (55.4M) | (49.9M) | (47.4M) | |
| Net Borrowings | 108M | 505.8M | 343.6M | 544.7M | 626.4M | 657.8M | |
| Change To Netincome | 49.4M | 13.2M | 66.9M | 33.0M | 37.9M | 39.8M | |
| Investments | (700.8M) | (317.5M) | (626.7M) | 76.5M | (422.5M) | (401.3M) |
Compass Diversified 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 Compass Diversified or Financial Services 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 Compass Diversified'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 Compass 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 | -0.31 | |
β | Beta against Dow Jones | 1.29 | |
σ | Overall volatility | 1.89 | |
Ir | Information ratio | -0.16 |
Compass Diversified Volatility Alert
Compass Diversified Holdings exhibits very low volatility with skewness of 1.34 and kurtosis of 7.33. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Compass Diversified'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 Compass Diversified'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.Compass Diversified Fundamentals Vs Peers
Comparing Compass Diversified'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 Compass Diversified's direct or indirect competition across all of the common fundamentals between Compass Diversified and the related equities. This way, we can detect undervalued stocks with similar characteristics as Compass Diversified or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Compass Diversified's fundamental indicators could also be used in its relative valuation, which is a method of valuing Compass Diversified by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Compass Diversified to competition |
| Fundamentals | Compass Diversified | Peer Average |
| Return On Equity | 0.0274 | -0.31 |
| Return On Asset | 0.0412 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.1 % | (5.51) % |
| Current Valuation | 3.58 B | 16.62 B |
| Shares Outstanding | 75.24 M | 571.82 M |
| Shares Owned By Insiders | 11.47 % | 10.09 % |
| Shares Owned By Institutions | 63.00 % | 39.21 % |
| Number Of Shares Shorted | 510.92 K | 4.71 M |
| Price To Earning | 27.79 X | 28.72 X |
| Price To Book | 1.65 X | 9.51 X |
| Price To Sales | 0.66 X | 11.42 X |
| Revenue | 2.2 B | 9.43 B |
| Gross Profit | 1.01 B | 27.38 B |
| EBITDA | 341.85 M | 3.9 B |
| Net Income | 42.3 M | 570.98 M |
| Cash And Equivalents | 102.71 M | 2.7 B |
| Cash Per Share | 1.43 X | 5.01 X |
| Total Debt | 1.77 B | 5.32 B |
| Debt To Equity | 1.05 % | 48.70 % |
| Current Ratio | 3.37 X | 2.16 X |
| Book Value Per Share | 11.67 X | 1.93 K |
| Cash Flow From Operations | (67.64 M) | 971.22 M |
| Short Ratio | 1.83 X | 4.00 X |
| Earnings Per Share | (1.25) X | 3.12 X |
| Price To Earnings To Growth | 2.71 X | 4.89 X |
| Target Price | 30.29 | |
| Number Of Employees | 3.34 K | 18.84 K |
| Beta | 1.56 | -0.15 |
| Market Capitalization | 1.44 B | 19.03 B |
| Total Asset | 4.05 B | 29.47 B |
| Retained Earnings | (386.32 M) | 9.33 B |
| Working Capital | 1.18 B | 1.48 B |
Note: Acquisition by Stephen Keller of 5000 shares of Compass Diversified at 21.63 subject to Rule 16b-3 [view details]
Compass Diversified Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Compass . 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.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 19.11 | |||
| Day Typical Price | 19.11 | |||
| Price Action Indicator | (0.04) | |||
| Period Momentum Indicator | (0.09) |
About Compass Diversified Buy or Sell Advice
When is the right time to buy or sell Compass Diversified Holdings? Buying financial instruments such as Compass 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.
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Check out Compass Diversified 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. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Multi-Sector Holdings 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 Compass Diversified. If investors know Compass 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 Compass Diversified 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 (0.96) | Dividend Share 1 | Earnings Share (1.25) | Revenue Per Share | Quarterly Revenue Growth 0.311 |
The market value of Compass Diversified is measured differently than its book value, which is the value of Compass that is recorded on the company's balance sheet. Investors also form their own opinion of Compass Diversified's value that differs from its market value or its book value, called intrinsic value, which is Compass Diversified'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 Compass Diversified's market value can be influenced by many factors that don't directly affect Compass Diversified'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 Compass Diversified's value and its price as these two are different measures arrived at by different means. Investors typically determine if Compass Diversified is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compass Diversified'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.