COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
NYSE:CODI - New York Stock Exchange, Inc. - US20451Q1040 - Common Stock - Currency: USD
CODI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. CODI has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on CODI.
1. Profitability
1.1 Basic Checks
CODI had positive earnings in the past year.
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
The Return On Assets of CODI (-3.12%) is worse than 87.88% of its industry peers.
Looking at the Return On Equity, with a value of -9.75%, CODI is doing worse than 83.84% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.33%, CODI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CODI is significantly below the industry average of 11.83%.
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
The Operating Margin of CODI (10.80%) is worse than 61.62% of its industry peers.
In the last couple of years the Operating Margin of CODI has grown nicely.
CODI has a Gross Margin of 45.63%. This is in the better half of the industry: CODI outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of CODI has grown nicely.
| 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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CODI remains at a similar level compared to 1 year ago.
The number of shares outstanding for CODI has been increased compared to 5 years ago.
Compared to 1 year ago, CODI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that CODI is in the distress zone and has some risk of bankruptcy.
CODI has a Altman-Z score of 1.23. This is in the better half of the industry: CODI outperforms 63.64% 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.
CODI's Debt to Equity ratio of 1.36 is in line compared to the rest of the industry. CODI outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC0.89
WACC7.14%
2.3 Liquidity
A Current Ratio of 4.07 indicates that CODI has no problem at all paying its short term obligations.
CODI has a Current ratio of 4.07. This is amongst the best in the industry. CODI outperforms 86.87% of its industry peers.
CODI has a Quick Ratio of 1.57. This is a normal value and indicates that CODI is financially healthy and should not expect problems in meeting its short term obligations.
CODI has a better Quick ratio (1.57) than 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.07 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.10% over the past year.
CODI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.59% yearly.
Looking at the last year, CODI shows a very strong growth in Revenue. The Revenue has grown by 32.23%.
Measured over the past years, CODI shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
The Revenue is expected to grow by 8.58% on average over the next years. This is quite good.
EPS Next Y4.36%
EPS Next 2Y8.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.62%
Revenue Next 2Y8.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 2.52, which indicates a rather cheap valuation of CODI.
CODI's Price/Earnings ratio is rather cheap when compared to the industry. CODI is cheaper than 98.99% of the companies in the same industry.
When comparing the Price/Earnings ratio of CODI to the average of the S&P500 Index (26.31), we can say CODI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 2.42, the valuation of CODI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 100.00% of the companies listed in the same industry.
CODI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.52 | ||
| Fwd PE | 2.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaper than 91.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
CODI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.58
PEG (5Y)0.38
EPS Next 2Y8.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.97%, CODI is a good candidate for dividend investing.
In the last 3 months the price of CODI has falen by -69.14%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CODI's Dividend Yield is rather good when compared to the industry average which is at 4.93. CODI pays more dividend than 97.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.97% |
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.
CODI has decreased its dividend 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 2Y8.46%
EPS Next 3YN/A
6
-0.35 (-5.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.14%
Inst Owner Change0.46%
Ins Owners1.81%
Ins Owner Change0.02%
Market Cap451.44M
Analysts81.82
Price Target27.2 (353.33%)
Short Float %1.04%
Short Ratio0.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.97% |
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)-11.95%
PT rev (3m)-11.95%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)1.14%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.52 | ||
| Fwd PE | 2.42 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.03 |
EPS(TTM)2.38
EY39.67%
EPS(NY)2.48
Fwd EY41.4%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.58
PEG (5Y)0.38
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%
ROICexcg growth 3Y-7.31%
ROICexcg 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
WACC7.14%
ROIC/WACC0.89
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 Y4.36%
EPS Next 2Y8.46%
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 Year8.62%
Revenue Next 2Y8.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.44%
EBIT growth 3Y13.13%
EBIT growth 5Y32.84%
EBIT Next Year113.37%
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