COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CODI - US20451Q1040 - Common Stock
5.5 USD
+0.33 (+6.38%)
5.51 USD
+0.01 (+0.18%)
CODI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. While CODI is still in line with the averages on profitability rating, there are concerns on its financial health. CODI is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In multiple years CODI reported negative net income over the last 5 years.
In multiple years CODI reported negative operating cash flow during the last 5 years.
1.2 Ratios
CODI has a Return On Assets of -3.12%. This is amonst the worse of the industry: CODI underperforms 82.65% of its industry peers.
With a Return On Equity value of -9.75%, CODI is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
CODI's Return On Invested Capital of 6.33% is fine compared to the rest of the industry. CODI outperforms 70.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CODI is below the industry average of 8.44%.
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
With a Operating Margin value of 10.80%, CODI perfoms like the industry average, outperforming 43.88% of the companies in the same industry.
CODI's Operating Margin has improved in the last couple of years.
CODI has a better Gross Margin (45.63%) than 67.35% 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 below the Cost of Capital (WACC), so CODI is destroying 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.
CODI has a worse debt/assets ratio than last year.
2.2 Solvency
CODI has an Altman-Z score of 1.21. This is a bad value and indicates that CODI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.21, CODI is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
CODI has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
CODI has a Debt to Equity ratio of 1.36. This is in the lower half of the industry: CODI underperforms 60.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC0.91
WACC6.95%
2.3 Liquidity
A Current Ratio of 4.07 indicates that CODI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.07, CODI belongs to the top of the industry, outperforming 88.78% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.57, CODI is in the better half of the industry, outperforming 74.49% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 6.59% on average over the past years.
The Revenue has grown by 32.23% in the past year. This is a very strong growth!
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 small growth in Revenue. The Revenue will grow by 6.13% 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 2Y6.13%
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.
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
CODI is valuated cheaply with a Price/Earnings ratio of 2.31.
CODI's Price/Earnings ratio is rather cheap when compared to the industry. CODI is cheaper than 98.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of CODI to the average of the S&P500 Index (27.19), we can say CODI is valued rather cheaply.
The Price/Forward Earnings ratio is 2.24, which indicates a rather cheap valuation of CODI.
100.00% of the companies in the same industry are more expensive than CODI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CODI to the average of the S&P500 Index (23.88), we can say CODI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.31 | ||
| Fwd PE | 2.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.82 |
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)0.7
PEG (5Y)0.35
EPS Next 2Y6.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.75%, CODI is a good candidate for dividend investing.
In the last 3 months the price of CODI has falen by -34.13%. 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 2.35. CODI pays more dividend than 96.94% of the companies in the same industry.
CODI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.75% |
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
The earnings of CODI are negative and hence is the payout ratio. CODI will probably not be able to sustain this dividend level.
DP-79.81%
EPS Next 2Y6.97%
EPS Next 3YN/A
5.5
+0.33 (+6.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners67.7%
Inst Owner Change0%
Ins Owners1.71%
Ins Owner Change0%
Market Cap413.82M
Revenue(TTM)2.72B
Net Income(TTM)-126.49M
Analysts80
Price Target22.44 (308%)
Short Float %8.02%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.75% |
Yearly Dividend1.34
Dividend Growth(5Y)-13.06%
DP-79.81%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)0%
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 | 2.31 | ||
| Fwd PE | 2.24 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.82 |
EPS(TTM)2.38
EY43.27%
EPS(NY)2.46
Fwd EY44.69%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)0.7
PEG (5Y)0.35
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
WACC6.95%
ROIC/WACC0.91
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 2Y6.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.44%
EBIT growth 3Y13.13%
EBIT growth 5Y32.84%
EBIT Next Year78%
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 4 / 10 to CODI.
Can you provide the valuation status for COMPASS DIVERSIFIED HOLDINGS?
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 2.31 and the Price/Book (PB) ratio is 0.32.
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%.