Is Compass Diversified Stock a Good Investment?
Compass Diversified Investment Advice | CODI |
- Examine Compass Diversified's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Compass Diversified's leadership team and their track record. Good management can help Compass Diversified navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Multi-Sector Holdings space and any emerging trends that could impact Compass Diversified's business and its evolving consumer preferences.
- Compare Compass Diversified's performance and market position to its competitors. Analyze how Compass Diversified is positioned in terms of product offerings, innovation, and market share.
- Check if Compass Diversified pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Compass Diversified's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Compass Diversified Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Compass Diversified Holdings is a good investment.
Sell | Buy |
Strong Sell
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 | Almost neglects market trends | 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 |
Examine Compass Diversified Stock
Researching Compass Diversified's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 63.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.65. Some equities with similar Price to Book (P/B) outperform the market in the long run. Compass Diversified has Price/Earnings To Growth (PEG) ratio of 2.71. The entity recorded a loss per share of 1.25. The firm last dividend was issued on the 16th of January 2025.
To determine if Compass Diversified is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Compass Diversified's research are outlined below:
| 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 bizjournals.com: Compass Coffee responds to lawsuit, denies co-founders racketeering claims |
Compass Diversified Quarterly Liabilities And Stockholders Equity |
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Compass Diversified uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Compass Diversified Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Compass Diversified's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Compass Diversified's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Compass Diversified's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-05-02 | 2018-03-31 | 0.26 | 0.23 | -0.03 | 11 | ||
2014-11-05 | 2014-09-30 | 0.25 | 0.28 | 0.03 | 12 | ||
2011-05-09 | 2011-03-31 | 0.28 | 0.31 | 0.03 | 10 | ||
2016-02-29 | 2015-12-31 | 0.34 | 0.3 | -0.04 | 11 | ||
2014-05-07 | 2014-03-31 | 0.26 | 0.3 | 0.04 | 15 | ||
2013-03-06 | 2012-12-31 | 0.27 | 0.31 | 0.04 | 14 | ||
2009-05-08 | 2009-03-31 | -0.05 | -0.01 | 0.04 | 80 | ||
2016-08-03 | 2016-06-30 | 0.34 | 0.29 | -0.05 | 14 |
Compass Diversified Target Price Consensus
Compass target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Compass Diversified's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 9 | Strong Buy |
Most Compass analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Compass stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Compass Diversified, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationCompass Diversified Target Price Projection
Compass Diversified's current and average target prices are 18.66 and 30.29, respectively. The current price of Compass Diversified is the price at which Compass Diversified Holdings is currently trading. On the other hand, Compass Diversified's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Compass Diversified Market Quote on 28th of March 2025
Target Price
Analyst Consensus On Compass Diversified Target Price
Compass Diversified Analyst Ratings
Compass Diversified's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Compass Diversified stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Compass Diversified's financials, market performance, and future outlook by experienced professionals. Compass Diversified's historical ratings below, therefore, can serve as a valuable tool for investors.Know Compass Diversified's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Compass Diversified is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Compass Diversified Holdings backward and forwards among themselves. Compass Diversified's institutional investor refers to the entity that pools money to purchase Compass Diversified's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| 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's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.45 B.Market Cap |
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Compass Diversified's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.06 | 0.07 | |
| Return On Equity | 0.01 | 0.01 |
Determining Compass Diversified's profitability involves analyzing its financial statements and using various financial metrics to determine if Compass Diversified is a good buy. For example, gross profit margin measures Compass Diversified's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Compass Diversified's profitability and make more informed investment decisions.
Compass Diversified's Earnings Breakdown by Geography
Evaluate Compass Diversified's management efficiency
Compass Diversified has return on total asset (ROA) of 0.0412 % which means that it generated a profit of $0.0412 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0274 %, meaning that it created $0.0274 on every $100 dollars invested by stockholders. Compass Diversified's management efficiency ratios could be used to measure how well Compass Diversified manages its routine affairs as well as how well it operates its assets and liabilities. The Compass Diversified's current Return On Capital Employed is estimated to increase to 0.07, while Return On Tangible Assets are projected to decrease to 0.01. As of now, Compass Diversified's Non Currrent Assets Other are increasing as compared to previous years. The Compass Diversified's current Intangibles To Total Assets is estimated to increase to 0.62, while Other Assets are projected to decrease to under 20.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 20.72 | 13.38 | |
| Tangible Book Value Per Share | (6.21) | (5.90) | |
| Enterprise Value Over EBITDA | 10.11 | 9.60 | |
| Price Book Value Ratio | 1.34 | 0.94 | |
| Enterprise Value Multiple | 10.11 | 9.60 | |
| Price Fair Value | 1.34 | 0.94 | |
| Enterprise Value | 2.8 B | 2.5 B |
Management at Compass Diversified focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Basic technical analysis of Compass Stock
As of the 28th of March, Compass Diversified shows the Mean Deviation of 1.28, standard deviation of 1.83, and Risk Adjusted Performance of (0.10). Compass Diversified technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Compass Diversified's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Compass Diversified insiders, such as employees or executives, is commonly permitted as long as it does not rely on Compass Diversified's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Compass Diversified insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Compass Diversified's Outstanding Corporate Bonds
Compass Diversified issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Compass Diversified uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Compass bonds can be classified according to their maturity, which is the date when Compass Diversified Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| US20453KAA34 Corp BondUS20453KAA34 | View | |
| US20451RAC60 Corp BondUS20451RAC60 | View | |
| US20451RAB87 Corp BondUS20451RAB87 | View | |
| Compass Minerals International Corp BondUS20451NAG60 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Compass Diversified's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Compass Diversified's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | 0.5941 | |||
| Mean Deviation | 1.28 | |||
| Coefficient Of Variation | (777.17) | |||
| Standard Deviation | 1.83 | |||
| Variance | 3.35 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.19) | |||
| Treynor Ratio | 0.5841 | |||
| Maximum Drawdown | 12.88 | |||
| Value At Risk | (2.74) | |||
| Potential Upside | 1.99 | |||
| Skewness | 1.5 | |||
| Kurtosis | 8.21 |
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | 0.5941 | |||
| Mean Deviation | 1.28 | |||
| Coefficient Of Variation | (777.17) | |||
| Standard Deviation | 1.83 | |||
| Variance | 3.35 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.19) | |||
| Treynor Ratio | 0.5841 | |||
| Maximum Drawdown | 12.88 | |||
| Value At Risk | (2.74) | |||
| Potential Upside | 1.99 | |||
| Skewness | 1.5 | |||
| Kurtosis | 8.21 |
Consider Compass Diversified's intraday indicators
Compass Diversified intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Compass Diversified stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Compass Diversified Corporate Filings
F4 | 4th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 27th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 19th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 26th of November 2024 An amendment to the original Schedule 13D filing | ViewVerify |
Compass Stock media impact
Far too much social signal, news, headlines, and media speculation about Compass Diversified that are available to investors today. That information is available publicly through Compass media outlets and privately through word of mouth or via Compass internal channels. However, regardless of the origin, that massive amount of Compass data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Compass Diversified news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Compass Diversified relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Compass Diversified's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Compass Diversified alpha.
Compass Diversified Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Compass Diversified can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Compass Diversified Historical Investor Sentiment
Investor biases related to Compass Diversified's public news can be used to forecast risks associated with an investment in Compass. The trend in average sentiment can be used to explain how an investor holding Compass can time the market purely based on public headlines and social activities around Compass Diversified Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Compass Diversified's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Compass Diversified and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Compass Diversified news discussions. The higher the estimate score, the more favorable the investor's outlook on Compass Diversified.
Compass Diversified Corporate Directors
| Kaajal Ali | Director Culture | Profile | |
| Alana Siska | Director Communications | Profile | |
| Larry Enterline | Independent Director | Profile | |
| Sarah McCoy | Director | Profile |
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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 | 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.
In summary, please note that there is a difference between Compass Diversified's value and its price, as these two are different measures arrived at by various 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.