(COMP) Compass - Overview
Sector: Real Estate | Industry: Real Estate Services | Exchange: NYSE (USA) | Market Cap: 6.276m USD | Total Return: 43.6% in 12m
Avg Turnover: 98.3M
Qual. Beats: 2
Rev. Trend: 93.5%
Qual. Beats: 0
Warnings
P/E ratio 420.0
Interest Coverage Ratio -8.0 is critical
Altman Z'' -2.27 < 1.0 - financial distress zone
Fakeout Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Compass, Inc. operates a comprehensive cloud-based technology platform designed to streamline residential real estate transactions in the United States. The company integrates customer relationship management (CRM), marketing tools, and brokerage services with ancillary offerings such as title, escrow, and mortgage services. Its business model focuses on capturing the entire real estate value chain by providing agents with proprietary software and sellers with capital for home improvements through the Compass Concierge program.
The residential real estate sector is increasingly shifting toward proptech solutions that consolidate fragmented workflows into unified digital interfaces. Unlike traditional brokerages that rely on third-party software, Compass functions as both a technology developer and a licensed brokerage, aiming to increase agent productivity through data-driven insights. For a deeper look at the fundamental metrics driving this transition, consider reviewing the detailed analysis on ValueRay. The company also manages the Christies International Real Estate platform, extending its reach into the global luxury market.
- High mortgage rates and low housing inventory suppress national transaction volumes
- Agent commission compression following NAR settlement impacts core revenue margins
- Expansion of high-margin ancillary services like title and escrow improves profitability
- Operating leverage increases as technology platform reduces brokerage administrative expenses
- Competitive pressure from rival firms threatens top-tier agent retention and recruitment
| Net Income: 14.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -7.55 > 1.0 |
| NWC/Revenue: -2.39% < 20% (prev -3.66%; Δ 1.26% < -1%) |
| CFO/TA 0.00 > 3% & CFO 36.6m > Net Income 14.2m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (572.0m) vs 12m ago 3.97% < -2% |
| Gross Margin: 19.13% > 18% (prev 0.16%; Δ 1.90k% > 0.5%) |
| Asset Turnover: 172.0% > 50% (prev 384.5%; Δ -212.4% > 0%) |
| Interest Coverage Ratio: -8.02 > 6 (EBITDA TTM -103.7m / Interest Expense TTM 43.7m) |
| A: -0.02 (Total Current Assets 1.06b - Total Current Liabilities 1.26b) / Total Assets 8.12b |
| B: -0.33 (Retained Earnings -2.71b / Total Assets 8.12b) |
| C: -0.07 (EBIT TTM -350.6m / Avg Total Assets 4.83b) |
| D: -0.51 (Book Value of Equity -2.71b / Total Liabilities 5.29b) |
| Altman-Z'' = -2.27 = D |
| DSRI: 1.26 (Receivables 180.0m/102.2m, Revenue 8.31b/5.93b) |
| GMI: 0.85 (GM 19.13% / 16.33%) |
| AQI: 1.57 (AQ_t 0.75 / AQ_t-1 0.48) |
| SGI: 1.40 (Revenue 8.31b / 5.93b) |
| TATA: -0.00 (NI 14.2m - CFO 36.6m) / TA 8.12b) |
| Beneish M = -2.33 (Cap -4..+1) = BBB |
As of May 29, 2026, the stock is trading at USD 8.36 with a total of 8,228,227 shares traded.
Over the past week, the price has changed by +0.24%,
over one month by +5.96%,
over three months by -14.26% and
over the past year by +43.64%.
Compass has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold COMP.
- StrongBuy: 2
- Buy: 2
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13.2 | 57.5% |
P/E Trailing = 420.0
P/E Forward = 15.8479
P/S = 0.7553
P/B = 2.2256
Revenue TTM = 8.31b USD
EBIT TTM = -350.6m USD
EBITDA TTM = -103.7m USD
Long Term Debt = 3.14b USD (from longTermDebt, last quarter)
Short Term Debt = 179.0m USD (from shortTermDebt, last quarter)
Debt = 4.69b USD (from shortLongTermDebtTotal, last quarter) + Leases 775.0m
Net Debt = 4.21b USD (calculated: Debt 4.69b - CCE 484.0m)
Enterprise Value = 10.5b USD (6.28b + Debt 4.69b - CCE 484.0m)
Interest Coverage Ratio = -8.02 (Ebit TTM -350.6m / Interest Expense TTM 43.7m)
EV/FCF = 663.4x (Enterprise Value 10.5b / FCF TTM 15.8m)
FCF Yield = 0.15% (FCF TTM 15.8m / Enterprise Value 10.5b)
FCF Margin = 0.19% (FCF TTM 15.8m / Revenue TTM 8.31b)
Net Margin = 0.17% (Net Income TTM 14.2m / Revenue TTM 8.31b)
Gross Margin = 19.13% ((Revenue TTM 8.31b - Cost of Revenue TTM 6.72b) / Revenue TTM)
Gross Margin QoQ = 25.74% (prev 10.41%)
Tobins Q-Ratio = 1.29 (Enterprise Value 10.5b / Total Assets 8.12b)
Interest Expense / Debt = 0.93% (Interest Expense 43.7m / Debt 4.69b)
Taxrate = 21.0% (US default 21%)
NOPAT = -277.0m (EBIT -350.6m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.84 (Total Current Assets 1.06b / Total Current Liabilities 1.26b)
Debt / Equity = 1.66 (Debt 4.69b / totalStockholderEquity, last quarter 2.82b)
Debt / EBITDA = -40.56 (negative EBITDA) (Net Debt 4.21b / EBITDA -103.7m)
Debt / FCF = 266.2 (Net Debt 4.21b / FCF TTM 15.8m)
Total Stockholder Equity = 1.27b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.29% (Net Income 14.2m / Total Assets 8.12b)
RoE = 0.36% (Net Income TTM 14.2m / Total Stockholder Equity 3.98b)
RoCE = -4.92% (EBIT -350.6m / Capital Employed (Equity 3.98b + L.T.Debt 3.14b))
RoIC = -3.94% (negative operating profit) (NOPAT -277.0m / Invested Capital 7.03b)
WACC = 6.52% (E(6.28b)/V(11.0b) * Re(10.84%) + D(4.69b)/V(11.0b) * Rd(0.93%) * (1-Tc(0.21)))
Discount Rate = 10.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 80.90 | Cagr: 7.73%
[DCF] Terminal Value 73.10% ; FCFF base≈57.2m ; Y1≈50.2m ; Y5≈40.6m
[DCF] Fair Price = N/A (negative equity: EV 651.0m - Net Debt 4.21b = -3.56b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 4.0 | # QB: 2
Revenue Correlation: 93.51 | Revenue CAGR: 18.96% | SUE: 0.12 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.26 | Chg30d=-12.47% | Revisions=-14% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.20 | Chg30d=-6.80% | Revisions=-14% | Analysts=3
EPS current Year (2026-12-31): EPS=0.84 | Chg30d=+56.11% | Revisions=+14% | GrowthEPS=+169.3% | GrowthRev=+100.4%
EPS next Year (2027-12-31): EPS=0.78 | Chg30d=-9.39% | Revisions=-14% | GrowthEPS=-6.6% | GrowthRev=+8.6%
[Analyst] Revisions Ratio: -14%