COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CODI - US20451Q1040 - Common Stock
4.79 USD
-0.18 (-3.62%)
4.95 USD
+0.16 (+3.34%)
Taking everything into account, CODI scores 5 out of 10 in our fundamental rating. 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
CODI had positive earnings in the past year.
In the past year CODI has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: CODI reported negative net income in multiple 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
Looking at the Return On Assets, with a value of -3.12%, CODI is doing worse than 84.54% of the companies in the same industry.
CODI has a worse Return On Equity (-9.75%) than 80.41% of its industry peers.
The Return On Invested Capital of CODI (6.33%) is better than 70.10% 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 8.44%.
The 3 year average ROIC (4.59%) for CODI is below the current ROIC(6.33%), indicating increased profibility in the last year.
| 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's Operating Margin of 10.80% is in line compared to the rest of the industry. CODI outperforms 43.30% of its industry peers.
CODI's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CODI is still creating some value.
Compared to 1 year ago, CODI has about the same amount of shares outstanding.
The number of shares outstanding for CODI has been increased compared to 5 years ago.
The debt/assets ratio for CODI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that CODI is in the distress zone and has some risk of bankruptcy.
CODI has a Altman-Z score of 1.21. This is in the better half of the industry: CODI outperforms 62.89% of its industry peers.
CODI has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external 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 | 1.21 |
ROIC/WACC1.04
WACC6.09%
2.3 Liquidity
A Current Ratio of 4.07 indicates that CODI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.07, CODI belongs to the best of the industry, outperforming 86.60% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that CODI should not have too much problems paying its short term obligations.
CODI has a better Quick ratio (1.57) than 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.
CODI shows a strong growth in Revenue. In the last year, 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
CODI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.97% yearly.
Based on estimates for the next years, CODI will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.01, which indicates a rather cheap valuation of CODI.
Based on the Price/Earnings ratio, CODI is valued cheaply inside the industry as 98.97% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.38. CODI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 1.95, the valuation of CODI can be described as very cheap.
100.00% of the companies in the same industry are more expensive than CODI, based on the Price/Forward Earnings ratio.
CODI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.01 | ||
| Fwd PE | 1.95 |
4.2 Price Multiples
93.81% of the companies in the same industry are more expensive than CODI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.79 |
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)0.61
PEG (5Y)0.31
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CODI has a Yearly Dividend Yield of 9.73%, which is a nice return.
The stock price of CODI dropped by -33.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.16, CODI pays a better dividend. On top of this CODI pays more dividend than 95.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.73% |
5.2 History
The dividend of CODI decreases each year by -13.06%.
CODI has paid a dividend for at least 10 years, which is 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
4.79
-0.18 (-3.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners67.44%
Inst Owner Change4.64%
Ins Owners1.71%
Ins Owner Change0%
Market Cap360.40M
Revenue(TTM)2.72B
Net Income(TTM)-126.49M
Analysts80
Price Target22.44 (368.48%)
Short Float %7.82%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.73% |
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)-15.38%
PT rev (3m)-15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.01 | ||
| Fwd PE | 1.95 | ||
| P/S | 0.13 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.79 |
EPS(TTM)2.38
EY49.69%
EPS(NY)2.46
Fwd EY51.32%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.61
PEG (5Y)0.31
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 | 1.21 |
F-Score3
WACC6.09%
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 2.01 and the Price/Book (PB) ratio is 0.28.
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%.