(CODI) Compass Diversified Holdings - Overview
Sector: Industrials | Industry: Conglomerates | Exchange: NYSE (USA) | Market Cap: 898m USD | Total Return: 52.4% in 12m
Avg Turnover: 8.21M
Qual. Beats: 0
Rev. Trend: -30.0%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Supp Ema20, Leader, Tailwind, Pullback 52w, Confidence
Compass Diversified (NYSE: CODI) operates as a middle-market investment firm focused on acquiring controlling interests in North American industrial and branded consumer companies. Unlike traditional private equity funds that rely on fixed-term capital raises, CODI utilizes its own balance sheet to maintain a permanent capital structure, typically holding assets for five to seven years. The firm targets companies with annual EBITDA starting at $10 million, seeking niche leaders in sectors ranging from healthcare and safety to leisure products and food services.
The middle-market sector is often characterized by fragmented competition, allowing firms like CODI to pursue add-on acquisitions to consolidate market share and achieve economies of scale. By maintaining majority ownership, the firm exerts direct operational control to drive recapitalization and long-term growth. Investors interested in deeper valuation metrics may find further insights on ValueRay.
Headquartered in Westport, Connecticut, and established in 1998, the company focuses on businesses with defensible market positions and consistent cash flows. Its investment range typically spans $80 million to $800 million per transaction, prioritizing diversified revenue streams across both consumer discretionary and essential business services.
- Subsidiary EBITDA growth across branded consumer and industrial segments drives valuation
- Higher interest rates increase debt servicing costs on floating rate credit facilities
- Strategic divestitures at premium multiples generate capital for accretive platform acquisitions
- Consumer discretionary spending fluctuations impact revenue for leisure and apparel subsidiaries
- Majority ownership structure allows direct control over portfolio company cash flow distributions
| Net Income: -204.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA 3.10 > 1.0 |
| NWC/Revenue: 30.51% < 20% (prev -73.18%; Δ 103.7% < -1%) |
| CFO/TA 0.00 > 3% & CFO 596k > Net Income -204.4m |
| Net Debt (1.91b) to EBITDA (179.1m): 10.66 < 3 |
| Current Ratio: 2.67 > 1.5 & < 3 |
| Outstanding Shares: last quarter (75.2m) vs 12m ago 0.00% < -2% |
| Gross Margin: 43.64% > 18% (prev 0.44%; Δ 4.32k% > 0.5%) |
| Asset Turnover: 58.53% > 50% (prev 59.75%; Δ -1.22% > 0%) |
| Interest Coverage Ratio: 0.30 > 6 (EBITDA TTM 179.1m / Interest Expense TTM 136.8m) |
| A: 0.19 (Total Current Assets 904.3m - Total Current Liabilities 339.0m) / Total Assets 2.96b |
| B: -0.45 (Retained Earnings -1.35b / Total Assets 2.96b) |
| C: 0.01 (EBIT TTM 41.6m / Avg Total Assets 3.17b) |
| D: -0.02 (Book Value of Equity -58.2m / Total Liabilities 2.43b) |
| Altman-Z'' = -0.17 = B |
| DSRI: 1.05 (Receivables 190.3m/196.4m, Revenue 1.85b/2.01b) |
| GMI: 1.01 (GM 43.64% / 43.92%) |
| AQI: 1.03 (AQ_t 0.63 / AQ_t-1 0.61) |
| SGI: 0.92 (Revenue 1.85b / 2.01b) |
| TATA: -0.07 (NI -204.4m - CFO 596k) / TA 2.96b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 11.70 with a total of 680,540 shares traded.
Over the past week, the price has changed by -4.26%,
over one month by -0.26%,
over three months by +41.48% and
over the past year by +52.39%.
Compass Diversified Holdings has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold CODI.
- StrongBuy: 1
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13 | 11.1% |
P/S = 0.4865
P/B = 12.9068
P/EG = 2.6473
Revenue TTM = 1.85b USD
EBIT TTM = 41.6m USD
EBITDA TTM = 179.1m USD
Long Term Debt = 1.82b USD (from longTermDebt, last quarter)
Short Term Debt = 41.2m USD (from shortTermDebt, last quarter)
Debt = 1.97b USD (from shortLongTermDebtTotal, last quarter) + Leases 110.3m
Net Debt = 1.91b USD (calculated: Debt 1.97b - CCE 60.7m)
Enterprise Value = 2.81b USD (898.3m + Debt 1.97b - CCE 60.7m)
Interest Coverage Ratio = 0.30 (Ebit TTM 41.6m / Interest Expense TTM 136.8m)
EV/FCF = -77.12x (Enterprise Value 2.81b / FCF TTM -36.4m)
FCF Yield = -1.30% (FCF TTM -36.4m / Enterprise Value 2.81b)
FCF Margin = -1.97% (FCF TTM -36.4m / Revenue TTM 1.85b)
Net Margin = -11.03% (Net Income TTM -204.4m / Revenue TTM 1.85b)
Gross Margin = 43.64% ((Revenue TTM 1.85b - Cost of Revenue TTM 1.04b) / Revenue TTM)
Gross Margin QoQ = 44.36% (prev 43.13%)
Tobins Q-Ratio = 0.95 (Enterprise Value 2.81b / Total Assets 2.96b)
Interest Expense / Debt = 6.94% (Interest Expense 136.8m / Debt 1.97b)
Taxrate = 21.0% (US default 21%)
NOPAT = 32.9m (EBIT 41.6m * (1 - 21.00%))
Current Ratio = 2.67 (Total Current Assets 904.3m / Total Current Liabilities 339.0m)
Debt / Equity = 4.92 (Debt 1.97b / totalStockholderEquity, last quarter 400.7m)
Debt / EBITDA = 10.66 (Net Debt 1.91b / EBITDA 179.1m)
Debt / FCF = -52.45 (negative FCF - burning cash) (Net Debt 1.91b / FCF TTM -36.4m)
Total Stockholder Equity = 511.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -6.46% (Net Income -204.4m / Total Assets 2.96b)
RoE = -11.00% (Net Income TTM -204.4m / Total Stockholder Equity 1.86b)
RoCE = 1.13% (EBIT 41.6m / Capital Employed (Equity 1.86b + L.T.Debt 1.82b))
RoIC = 1.23% (NOPAT 32.9m / Invested Capital 2.67b)
WACC = 6.47% (E(898.3m)/V(2.87b) * Re(8.64%) + D(1.97b)/V(2.87b) * Rd(6.94%) * (1-Tc(0.21)))
Discount Rate = 8.64% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -17.64 | Cagr: 1.70%
[DCF] Fair Price = unknown (Cash Flow -36.4m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.53 | # QB: 0
Revenue Correlation: -30.04 | Revenue CAGR: -1.90% | SUE: -0.07 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.08 | Chg30d=N/A | Revisions=N/A | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.07 | Chg30d=N/A | Revisions=+20% | Analysts=4
EPS current Year (2026-12-31): EPS=0.28 | Chg30d=+317.31% | Revisions=+20% | GrowthEPS=+1053.1% | GrowthRev=-8.2%
EPS next Year (2027-12-31): EPS=0.28 | Chg30d=+247.37% | Revisions=-20% | GrowthEPS=-0.9% | GrowthRev=+3.6%
[Analyst] Revisions Ratio: +20%