(CODI) Compass Diversified - Ratings and Ratios

Compass Diversified Holdings (NYSE:CODI) is a private equity firm that specializes in strategic investments across various industries, with a focus on acquiring and consolidating leading companies in the industrial, consumer, and service sectors. With a strong presence in North America, the firm targets investments in companies with robust EBITDA and growth potential, typically within the range of $80 million to $800 million, and EBITDA of at least $10 million per annum.

The firms investment strategy is centered around acquiring controlling ownership interests in its portfolio companies, often with a majority stake, allowing for significant influence over the direction and operations of these businesses. Through its balance sheet, Compass Diversified typically holds investments for a period of five to seven years, providing a stable foundation for long-term growth and value creation.

With a diverse portfolio spanning multiple sectors, including consumer discretionary, commercial services, and capital goods, Compass Diversified is well-positioned to capitalize on emerging trends and opportunities. The firms expertise in add-on acquisitions, buyouts, and industry consolidation enables it to drive growth, improve operational efficiency, and enhance the overall value of its investments.

From a technical analysis perspective, CODIs current price of $6.00 is near its 52-week low, with its short-term and long-term moving averages (SMA20, SMA50, and SMA200) indicating a downtrend. However, the Average True Range (ATR) of 0.84 (13.93%) suggests a relatively high level of volatility, potentially presenting a buying opportunity for investors. Considering the fundamental data, the firms market capitalization of $475.49M USD and forward P/E ratio of 7.21 indicate a relatively undervalued stock.

Based on the technical and fundamental data, a potential forecast for CODI is that it may experience a rebound in the short-term, driven by a potential increase in investor confidence and a reduction in volatility. If the stock is able to break through its SMA20 resistance at $6.98, it may be poised for a further increase towards its SMA50 at $11.74. However, if the downtrend continues, CODI may retest its 52-week low or potentially decline further. Investors should closely monitor the stocks performance and adjust their strategies accordingly.