Compass Diversified Holdings Stock Buy Hold or Sell Recommendation

CODI Stock  USD 19.44  0.38  1.99%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Compass Diversified Holdings is 'Strong 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.

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

Risk Tolerance

Execute Advice
Sell Compass DiversifiedBuy Compass Diversified
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Compass Diversified Holdings has a Risk Adjusted Performance of (0.10), Jensen Alpha of (0.12), Total Risk Alpha of (0.01) and Treynor Ratio of (0.22)
Our trade advice tool can cross-verify current analyst consensus on Compass Diversified and to analyze the company potential to grow in the current economic cycle. To make sure Compass Diversified is not overpriced, please confirm all Compass Diversified fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that Compass Diversified has a price to earning of 27.79 X, we suggest you to validate Compass Diversified Holdings 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.

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
On 23rd of January 2025 Compass Diversified paid $ 0.25 per share dividend to its current shareholders
Latest headline from bizjournals.com: Berkshire Hathaway HomeServices Fox Roach parent refutes Compass sale talks

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
-0.23
Value At Risk
-2.82
Potential Upside
2.10
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 Co2024-12-31
1.1 M
Royce & Associates, Lp2024-12-31
817 K
Sei Investments Co2024-12-31
804.2 K
Geode Capital Management, Llc2024-12-31
797.4 K
Royal Bank Of Canada2024-12-31
737.2 K
Blair William & Co2024-12-31
647.4 K
Ubs Group Ag2024-12-31
619.5 K
Legal & General Group Plc2024-12-31
576.8 K
Northern Trust Corp2024-12-31
507.7 K
Vanguard Group Inc2024-12-31
5.4 M
American Century Companies Inc2024-12-31
5.3 M
Note, although Compass Diversified'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.

Compass Diversified Cash Flow Accounts

202020212022202320242025 (projected)
Capital Expenditures30.8M39.9M64.3M55.8M56.7M59.5M
Net Income27.1M24.9M42.0M(38.7M)42.3M40.0M
Change In Cash(29.6M)90.0M(99.5M)389.2M(390.8M)(371.2M)
End Period Cash Flow70.7M160.7M61.3M450.5M59.7M92.5M
Change To Inventory(28.0M)(106.4M)(170.6M)(58.3M)(229.4M)(217.9M)
Free Cash Flow117.9M94.2M(92.6M)22.3M(124.3M)(118.1M)
Depreciation102.8M117.6M138.8M142.4M143.7M82.9M
Other Non Cash Items7.2M71.3M33.7M138.8M40.8M42.9M
Dividends Paid113.5M209.2M95.0M96.1M149.9M91.5M
Change Receivables10.8M(28.8M)(30.5M)(55.4M)(49.9M)(47.4M)
Net Borrowings108M505.8M343.6M544.7M626.4M657.8M
Change To Netincome49.4M13.2M66.9M33.0M37.9M39.8M
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
-0.12
β
Beta against Dow Jones1.11
σ
Overall volatility
1.89
Ir
Information ratio -0.07

Compass Diversified Volatility Alert

Compass Diversified Holdings exhibits very low volatility with skewness of 1.34 and kurtosis of 7.26. 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
FundamentalsCompass DiversifiedPeer Average
Return On Equity0.0274-0.31
Return On Asset0.0412-0.14
Profit Margin0.01 %(1.27) %
Operating Margin0.1 %(5.51) %
Current Valuation3.57 B16.62 B
Shares Outstanding75.24 M571.82 M
Shares Owned By Insiders11.47 %10.09 %
Shares Owned By Institutions62.60 %39.21 %
Number Of Shares Shorted578.27 K4.71 M
Price To Earning27.79 X28.72 X
Price To Book1.63 X9.51 X
Price To Sales0.67 X11.42 X
Revenue2.2 B9.43 B
Gross Profit1.01 B27.38 B
EBITDA341.85 M3.9 B
Net Income42.3 M570.98 M
Cash And Equivalents102.71 M2.7 B
Cash Per Share1.43 X5.01 X
Total Debt1.77 B5.32 B
Debt To Equity1.05 %48.70 %
Current Ratio3.37 X2.16 X
Book Value Per Share11.67 X1.93 K
Cash Flow From Operations(67.64 M)971.22 M
Short Ratio2.91 X4.00 X
Earnings Per Share(1.25) X3.12 X
Price To Earnings To Growth2.71 X4.89 X
Target Price30.29
Number Of Employees3.34 K18.84 K
Beta1.56-0.15
Market Capitalization1.46 B19.03 B
Total Asset4.05 B29.47 B
Retained Earnings(386.32 M)9.33 B
Working Capital1.18 B1.48 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.

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.

Use Investing Ideas to Build Portfolios

In addition to having Compass Diversified 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.

Did You Try This Idea?

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Plastics
Plastics Theme
Companies manufacturing rubber and plastics accessories. The Plastics theme has 42 constituents at this time.
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 Plastics Theme or any other thematic opportunities.
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When determining whether Compass Diversified offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Compass Diversified's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Compass Diversified Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Compass Diversified Holdings Stock:
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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
29.133
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.