(CODI) Compass Diversified - Ratings and Ratios

Compass Diversified Holdings (NYSE:CODI) is a multi-sector holdings company that operates as a parent organization to a diverse portfolio of businesses. The firm specializes in control investments in middle-market companies across various industries, with a focus on sectors such as industrials, consumer discretionary, business services, and healthcare. CODI employs a decentralized management approach, allowing subsidiaries to operate independently while providing strategic oversight and resources to drive growth. The company prioritizes investments in businesses with strong market positions, stable cash flows, and opportunities for organic growth or add-on acquisitions.

Founded in 2006 and headquartered in Westport, Connecticut, with an additional office in Costa Mesa, California, CODI typically invests between $80 million and $800 million in companies with EBITDA ranging from $10 million to $150 million annually. The firm seeks controlling ownership stakes, often holding investments for five to seven years before exploring exit opportunities. CODI’s investment strategy emphasizes resilience, targeting sectors with less cyclical exposure to mitigate market volatility.

From a technical perspective, CODI’s stock is currently trading near its 20-day SMA of $16.71, with a last price of $17.65 and an ATR of 0.69, suggesting moderate volatility. The stock is below its 50-day SMA of $18.33 and its 200-day SMA of $20.55, indicating a potential downtrend in the short to medium term. However, the forward P/E of 10.48 and P/S ratio of 0.59 suggest undervaluation relative to peers, which could attract investors seeking value opportunities.

Fundamentally, CODI’s market cap of $1.3 billion and P/B ratio of 1.49 reflect a balanced valuation, while the RoE of 0.56 indicates moderate profitability. The firm’s diversified portfolio and focus on stable cash flows position it well to navigate economic uncertainties. Over the next three months, CODI’s stock is likely to experience volatility within a range defined by its ATR, with potential support near $16.71 and resistance at $18.33. The attractive forward P/E and low P/S ratio may drive investor interest, potentially leading to a rebound in the stock price.

For more information, visit the company’s website at https://www.compassdiversified.com.