This module uses fundamental data of Compass Diversified to approximate the value of its Beneish M Score. Compass Diversified M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Compass Diversified Piotroski F Score and Compass Diversified Altman Z Score analysis.
Compass
Beneish M Score
Market Cap
Price To Sales Ratio
Dividend Yield
Ptb Ratio
Days Sales Outstanding
Book Value Per Share
Free Cash Flow Yield
Operating Cash Flow Per Share
Stock Based Compensation To Revenue
Capex To Depreciation
Pb Ratio
Ev To Sales
Free Cash Flow Per Share
Roic
Inventory Turnover
Net Income Per Share
Days Of Inventory On Hand
Payables Turnover
Sales General And Administrative To Revenue
Research And Ddevelopement To Revenue
Capex To Revenue
Cash Per Share
Pocfratio
Interest Coverage
Payout Ratio
Capex To Operating Cash Flow
Pfcf Ratio
Days Payables Outstanding
Income Quality
Roe
Ev To Operating Cash Flow
Pe Ratio
Return On Tangible Assets
Ev To Free Cash Flow
Earnings Yield
Intangibles To Total Assets
Net Debt To E B I T D A
Current Ratio
Tangible Book Value Per Share
Receivables Turnover
Graham Number
Shareholders Equity Per Share
Debt To Equity
Capex Per Share
Graham Net Net
Revenue Per Share
Interest Debt Per Share
Debt To Assets
Enterprise Value Over E B I T D A
Short Term Coverage Ratios
Price Earnings Ratio
Operating Cycle
Price Book Value Ratio
Price Earnings To Growth Ratio
Days Of Payables Outstanding
Dividend Payout Ratio
Price To Operating Cash Flows Ratio
Price To Free Cash Flows Ratio
Pretax Profit Margin
Ebt Per Ebit
Operating Profit Margin
Effective Tax Rate
Company Equity Multiplier
Long Term Debt To Capitalization
Total Debt To Capitalization
Return On Capital Employed
Debt Equity Ratio
Ebit Per Revenue
Quick Ratio
Dividend Paid And Capex Coverage Ratio
Net Income Per E B T
Cash Ratio
Cash Conversion Cycle
Operating Cash Flow Sales Ratio
Days Of Inventory Outstanding
Days Of Sales Outstanding
Free Cash Flow Operating Cash Flow Ratio
Cash Flow Coverage Ratios
Price To Book Ratio
Fixed Asset Turnover
Capital Expenditure Coverage Ratio
Price Cash Flow Ratio
Enterprise Value Multiple
Debt Ratio
Cash Flow To Debt Ratio
Price Sales Ratio
Return On Assets
Asset Turnover
Net Profit Margin
Gross Profit Margin
Price Fair Value
Return On Equity
Capital Expenditures
Total Cash From Operating Activities
Net Income
Total Cash From Financing Activities
Change In Cash
Change In Working Capital
End Period Cash Flow
Change To Inventory
Stock Based Compensation
Free Cash Flow
Begin Period Cash Flow
Other Cashflows From Financing Activities
Depreciation
Other Non Cash Items
Dividends Paid
Change To Account Receivables
Change To Liabilities
Other Cashflows From Investing Activities
Sale Purchase Of Stock
Total Cashflows From Investing Activities
Change Receivables
Net Borrowings
Exchange Rate Changes
Cash And Cash Equivalents Changes
Cash Flows Other Operating
Change To Netincome
Investments
Change To Operating Activities
Issuance Of Capital Stock
Total Assets
Other Current Liab
Total Current Liabilities
Total Stockholder Equity
Other Liab
Accounts Payable
Cash
Other Assets
Long Term Debt
Good Will
Other Current Assets
Total Liab
Intangible Assets
Common Stock
Property Plant Equipment
Net Debt
Retained Earnings
Cash And Short Term Investments
Common Stock Total Equity
Common Stock Shares Outstanding
Liabilities And Stockholders Equity
Total Current Assets
Short Long Term Debt Total
Property Plant And Equipment Net
Current Deferred Revenue
Non Current Assets Total
Non Currrent Assets Other
Net Receivables
Non Current Liabilities Total
Inventory
Other Stockholder Equity
Property Plant And Equipment Gross
Accumulated Other Comprehensive Income
Short Term Debt
Total Permanent Equity
Noncontrolling Interest In Consolidated Entity
Retained Earnings Total Equity
Deferred Long Term Liab
Preferred Stock Total Equity
Net Tangible Assets
Long Term Debt Total
Non Current Liabilities Other
Long Term Investments
Short Long Term Debt
Net Invested Capital
Net Working Capital
Capital Stock
Interest Expense
Selling General Administrative
Total Revenue
Gross Profit
Operating Income
Cost Of Revenue
Income Before Tax
Net Income Applicable To Common Shares
Income Tax Expense
Other Operating Expenses
Ebit
Ebitda
Total Operating Expenses
Depreciation And Amortization
Research Development
Extraordinary Items
Total Other Income Expense Net
Minority Interest
Selling And Marketing Expenses
Net Income From Continuing Ops
Non Recurring
Non Operating Income Net Other
Discontinued Operations
Tax Provision
Interest Income
Net Interest Income
Reconciled Depreciation
Probability Of Bankruptcy
As of now, Compass Diversified's Short Term Debt is increasing as compared to previous years. The Compass Diversified's current Long Term Debt Total is estimated to increase to about 2.2 B, while Short and Long Term Debt is projected to decrease to under 8.8 M. As of now, Compass Diversified's Cash Per Share is increasing as compared to previous years. The Compass Diversified's current Interest Coverage is estimated to increase to 2.26, while Price To Sales Ratio is projected to decrease to 0.58.
At this time, it appears that Compass Diversified is a possible manipulator. The earnings manipulation may begin if Compass Diversified's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Compass Diversified executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Compass Diversified's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Compass Diversified's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Compass Diversified's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Compass Diversified in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Compass Diversified's degree of accounting gimmicks and manipulations.
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Compass Diversified. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Compass Diversified's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Compass Diversified's managers, analysts, and investors.
Environmental
Governance
Social
About Compass Diversified Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Compass Diversified Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Compass Diversified using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Compass Diversified Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
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:
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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.