COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - NYSE:CODI - US20451Q1040 - Common Stock
5.98 USD
+0.03 (+0.5%)
5.9 USD
-0.08 (-1.34%)
We assign a fundamental rating of 5 out of 10 to CODI. CODI was compared to 97 industry peers in the Financial Services industry. CODI has a medium profitability rating, but doesn't score so well on its financial health evaluation. CODI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CODI was profitable.
CODI had a negative operating cash flow in the past year.
In multiple years CODI reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CODI reported negative operating cash flow in multiple years.
1.2 Ratios
CODI's Return On Assets of -3.12% is on the low side compared to the rest of the industry. CODI is outperformed by 84.54% of its industry peers.
Looking at the Return On Equity, with a value of -9.75%, CODI is doing worse than 82.47% of the companies in the same industry.
The Return On Invested Capital of CODI (6.33%) is better than 71.13% of its industry peers.
CODI had an Average Return On Invested Capital over the past 3 years of 4.59%. This is below the industry average of 8.17%.
The last Return On Invested Capital (6.33%) for CODI is above the 3 year average (4.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -9.75% | ||
| ROIC | 6.33% |
ROA(3y)1.22%
ROA(5y)0.97%
ROE(3y)3.42%
ROE(5y)2.78%
ROIC(3y)4.59%
ROIC(5y)4.28%
1.3 Margins
CODI has a Operating Margin (10.80%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CODI has grown nicely.
CODI's Gross Margin of 45.63% is fine compared to the rest of the industry. CODI outperforms 67.01% of its industry peers.
CODI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 45.63% |
OM growth 3Y8.37%
OM growth 5Y18.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.66%
GM growth 5Y4.7%
2. Health
2.1 Basic Checks
CODI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CODI remains at a similar level compared to 1 year ago.
CODI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CODI has a worse debt to assets ratio.
2.2 Solvency
CODI has an Altman-Z score of 1.23. This is a bad value and indicates that CODI is not financially healthy and even has some risk of bankruptcy.
CODI has a better Altman-Z score (1.23) than 63.92% of its industry peers.
A Debt/Equity ratio of 1.36 is on the high side and indicates that CODI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.36, CODI is doing worse than 60.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC1.04
WACC6.08%
2.3 Liquidity
CODI has a Current Ratio of 4.07. This indicates that CODI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CODI (4.07) is better than 87.63% of its industry peers.
A Quick Ratio of 1.57 indicates that CODI should not have too much problems paying its short term obligations.
CODI's Quick ratio of 1.57 is fine compared to the rest of the industry. CODI outperforms 73.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.07 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
CODI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.10%, which is quite good.
Measured over the past 5 years, CODI shows a small growth in Earnings Per Share. The EPS has been growing by 6.59% on average per year.
Looking at the last year, CODI shows a very strong growth in Revenue. The Revenue has grown by 32.23%.
CODI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.72% yearly.
EPS 1Y (TTM)16.1%
EPS 3Y-4.24%
EPS 5Y6.59%
EPS Q2Q%16.98%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y4.39%
Revenue growth 5Y11.72%
Sales Q2Q%9.39%
3.2 Future
Based on estimates for the next years, CODI will show a small growth in Earnings Per Share. The EPS will grow by 6.97% on average per year.
CODI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y3.29%
EPS Next 2Y6.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y8.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 2.51, the valuation of CODI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 100.00% of the companies listed in the same industry.
CODI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
CODI is valuated cheaply with a Price/Forward Earnings ratio of 2.43.
Based on the Price/Forward Earnings ratio, CODI is valued cheaper than 100.00% of the companies in the same industry.
CODI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.51 | ||
| Fwd PE | 2.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaply inside the industry as 90.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.76
PEG (5Y)0.38
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.62%, CODI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.50, CODI pays a better dividend. On top of this CODI pays more dividend than 96.91% of the companies listed in the same industry.
CODI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.62% |
5.2 History
The dividend of CODI decreases each year by -13.06%.
CODI has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CODI decreased in the last 3 years.
Dividend Growth(5Y)-13.06%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
CODI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-79.81%
EPS Next 2Y6.97%
EPS Next 3YN/A
5.98
+0.03 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change-6.4%
Ins Owners1.71%
Ins Owner Change0%
Market Cap449.94M
Revenue(TTM)2.72B
Net Income(TTM)-126.49M
Analysts80
Price Target26.52 (343.48%)
Short Float %5.94%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.62% |
Yearly Dividend1.34
Dividend Growth(5Y)-13.06%
DP-79.81%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.25%
Min EPS beat(2)8.3%
Max EPS beat(2)16.19%
EPS beat(4)4
Avg EPS beat(4)14.11%
Min EPS beat(4)2.16%
Max EPS beat(4)29.78%
EPS beat(8)8
Avg EPS beat(8)21.16%
EPS beat(12)11
Avg EPS beat(12)22.28%
EPS beat(16)15
Avg EPS beat(16)27.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-4.82%
Max Revenue beat(4)-2.59%
Revenue beat(8)0
Avg Revenue beat(8)-3.67%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)5
Avg Revenue beat(16)-0.02%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.71%
EPS NY rev (1m)0%
EPS NY rev (3m)12.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.51 | ||
| Fwd PE | 2.43 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.96 |
EPS(TTM)2.38
EY39.8%
EPS(NY)2.46
Fwd EY41.11%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.76
PEG (5Y)0.38
Graham Number30.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -9.75% | ||
| ROCE | 8.01% | ||
| ROIC | 6.33% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 14.73% | ||
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 45.63% | ||
| FCFM | N/A |
ROA(3y)1.22%
ROA(5y)0.97%
ROE(3y)3.42%
ROE(5y)2.78%
ROIC(3y)4.59%
ROIC(5y)4.28%
ROICexc(3y)4.84%
ROICexc(5y)4.5%
ROICexgc(3y)12.37%
ROICexgc(5y)12.25%
ROCE(3y)5.81%
ROCE(5y)5.41%
ROICexgc growth 3Y-7.31%
ROICexgc growth 5Y8.83%
ROICexc growth 3Y1.71%
ROICexc growth 5Y12.65%
OM growth 3Y8.37%
OM growth 5Y18.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.66%
GM growth 5Y4.7%
F-Score3
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.04 | ||
| Cap/Depr | 39.47% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.07 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.23 |
F-Score3
WACC6.08%
ROIC/WACC1.04
Cap/Depr(3y)41.66%
Cap/Depr(5y)37.77%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.1%
EPS 3Y-4.24%
EPS 5Y6.59%
EPS Q2Q%16.98%
EPS Next Y3.29%
EPS Next 2Y6.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)32.23%
Revenue growth 3Y4.39%
Revenue growth 5Y11.72%
Sales Q2Q%9.39%
Revenue Next Year9.05%
Revenue Next 2Y8.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.44%
EBIT growth 3Y13.13%
EBIT growth 5Y32.84%
EBIT Next Year126.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-657.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-186.62%
OCF growth 3YN/A
OCF growth 5YN/A
COMPASS DIVERSIFIED HOLDINGS / CODI FAQ
What is the fundamental rating for CODI stock?
ChartMill assigns a fundamental rating of 5 / 10 to CODI.
What is the valuation status of COMPASS DIVERSIFIED HOLDINGS (CODI) stock?
ChartMill assigns a valuation rating of 7 / 10 to COMPASS DIVERSIFIED HOLDINGS (CODI). This can be considered as Undervalued.
How profitable is COMPASS DIVERSIFIED HOLDINGS (CODI) stock?
COMPASS DIVERSIFIED HOLDINGS (CODI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of COMPASS DIVERSIFIED HOLDINGS (CODI) stock?
The Price/Earnings (PE) ratio for COMPASS DIVERSIFIED HOLDINGS (CODI) is 2.51 and the Price/Book (PB) ratio is 0.35.
Is the dividend of COMPASS DIVERSIFIED HOLDINGS sustainable?
The dividend rating of COMPASS DIVERSIFIED HOLDINGS (CODI) is 5 / 10 and the dividend payout ratio is -79.81%.