Compass Diversified Price To Sales vs. Operating Margin
| CODI Stock | USD 23.35 0.34 1.48% |
For Compass Diversified profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Compass Diversified to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Compass Diversified Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Compass Diversified's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Compass Diversified Holdings over time as well as its relative position and ranking within its peers.
Compass |
Compass Diversified's Revenue Breakdown by Earning Segment
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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 (0.13) | 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.
Compass Diversified Operating Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Compass Diversified's current stock value. Our valuation model uses many indicators to compare Compass Diversified value to that of its competitors to determine the firm's financial worth. Compass Diversified Holdings is number one stock in price to sales category among its peers. It also is number one stock in operating margin category among its peers reporting about 0.16 of Operating Margin per Price To Sales. The ratio of Price To Sales to Operating Margin for Compass Diversified Holdings is roughly 6.43 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Compass Diversified's earnings, one of the primary drivers of an investment's value.Compass Diversified's Earnings Breakdown by Geography
Compass Operating Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Compass Diversified |
| = | 0.79 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Compass Diversified |
| = | 0.12 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Compass Operating Margin Comparison
Compass Diversified is currently under evaluation in operating margin category among its peers.
Compass Diversified Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Compass Diversified, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Compass Diversified will eventually generate negative long term returns. The profitability progress is the general direction of Compass Diversified's change in net profit over the period of time. It can combine multiple indicators of Compass Diversified, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. Compass Diversified was founded in 2005 and is based in Westport, Connecticut with an additional office in Costa Mesa, California. Compass Diversified operates under Conglomerates classification in the United States and is traded on New York Stock Exchange. It employs 68 people.
Compass Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Compass Diversified. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Compass Diversified position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Compass Diversified's important profitability drivers and their relationship over time.
Use Compass Diversified in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Compass Diversified position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Compass Diversified will appreciate offsetting losses from the drop in the long position's value.Compass Diversified Pair Trading
Compass Diversified Holdings Pair Trading Analysis
The ability to find closely correlated positions to Compass Diversified could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compass Diversified when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Compass Diversified - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Compass Diversified Holdings to buy it.
The correlation of Compass Diversified is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Compass Diversified moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Compass Diversified moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Compass Diversified can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Compass Diversified position
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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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Financials ETFs theme has 45 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 Financials ETFs Theme or any other thematic opportunities.
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To fully project Compass Diversified's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Compass Diversified at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Compass Diversified's income statement, its balance sheet, and the statement of cash flows.