Compass Diversified Holdings Stock Piotroski F Score

CODI Stock  USD 23.64  0.09  0.38%   
This module uses fundamental data of Compass Diversified to approximate its Piotroski F score. Compass Diversified F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Compass Diversified Holdings. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Compass Diversified financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Compass Diversified Altman Z Score, Compass Diversified Correlation, Compass Diversified Valuation, as well as analyze Compass Diversified Alpha and Beta and Compass Diversified Hype Analysis.
  
As of now, Compass Diversified's Long Term Debt Total is increasing as compared to previous years. The Compass Diversified's current Debt To Equity is estimated to increase to 1.32, while Short Term Debt is projected to decrease to under 10.9 M. As of now, Compass Diversified's Net Income Per Share is increasing as compared to previous years. The Compass Diversified's current Days Of Inventory On Hand is estimated to increase to 243.45, while Price To Sales Ratio is projected to decrease to 0.58.
At this time, it appears that Compass Diversified's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
6.0
Piotroski F Score - Healthy
Current Return On Assets

Positive

Focus
Change in Return on Assets

Increased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Decreasing

Focus
Asset Turnover Growth

Increase

Focus
Current Ratio Change

Increase

Focus
Long Term Debt Over Assets Change

Higher Leverage

Focus
Change In Outstending Shares

Decrease

Focus
Change in Gross Margin

No Change

Focus

Compass Diversified Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Compass Diversified is to make sure Compass is not a subject of accounting manipulations and runs a healthy internal audit department. So, 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. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Compass Diversified's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Asset Turnover0.940.5394
Way Up
Slightly volatile
Gross Profit Margin0.260.4339
Way Down
Slightly volatile
Total Current Liabilities197.3 M312.4 M
Way Down
Slightly volatile
Non Current Liabilities Total2.1 BB
Sufficiently Up
Slightly volatile
Total AssetsB3.8 B
Sufficiently Up
Slightly volatile
Total Current Assets1.7 B1.6 B
Sufficiently Up
Slightly volatile

Compass Diversified F Score Driver Matrix

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 project the various growth rates. 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.

About Compass Diversified Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value Per Share

13.21

As of now, Compass Diversified's Book Value Per Share is increasing as compared to previous years.

Compass Diversified ESG Sustainability

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.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

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 Altman Z Score, Compass Diversified Correlation, Compass Diversified Valuation, as well as analyze Compass Diversified Alpha and Beta and Compass Diversified Hype Analysis.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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
(0.13)
Dividend Share
1
Earnings Share
(1.89)
Revenue Per Share
29.678
Quarterly Revenue Growth
0.118
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.