COMPASS DIVERSIFIED HOLDINGS (CODI) Stock Fundamental Analysis
NYSE:CODI - New York Stock Exchange, Inc. - US20451Q1040 - Common Stock - Currency: USD
Taking everything into account, CODI scores 4 out of 10 in our fundamental rating. CODI was compared to 100 industry peers in the Financial Services industry. Both the profitability and financial health of CODI have multiple concerns. CODI is not valued too expensively and it also shows a decent growth rate.
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
CODI has a worse Return On Assets (-3.12%) than 88.00% of its industry peers.
CODI has a Return On Equity of -9.75%. This is amonst the worse of the industry: CODI underperforms 84.00% of its industry peers.
CODI's Return On Invested Capital of 6.33% is fine compared to the rest of the industry. CODI outperforms 73.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CODI is significantly below the industry average of 11.84%.
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 of 10.80%. This is in the lower half of the industry: CODI underperforms 61.00% of its industry peers.
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 66.00% 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.
Compared to 5 years ago, CODI has more shares outstanding
CODI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that CODI is in the distress zone and has some risk of bankruptcy.
CODI has a Altman-Z score of 1.24. This is in the better half of the industry: CODI outperforms 63.00% 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 has a Debt to Equity ratio of 1.36. This is comparable to the rest of the industry: CODI outperforms 42.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.87
WACC7.29%
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 better Current ratio (4.07) than 87.00% of its industry peers.
A Quick Ratio of 1.57 indicates that CODI should not have too much problems paying 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 70.00% of the companies in the same industry.
| 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%.
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 small growth in Earnings Per Share. The EPS will grow by 0.89% on average per year.
Based on estimates for the next years, CODI will show a small growth in Revenue. The Revenue will grow by 4.98% on average per year.
EPS Next Y-7.96%
EPS Next 2Y0.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.41%
Revenue Next 2Y4.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 2.70, the valuation of CODI can be described as very cheap.
CODI's Price/Earnings ratio is rather cheap when compared to the industry. CODI is cheaper than 99.00% of the companies in the same industry.
CODI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 2.94, the valuation of CODI can be described as very cheap.
99.00% of the companies in the same industry are more expensive than CODI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CODI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.7 | ||
| Fwd PE | 2.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 92.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y0.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.11%, CODI is a good candidate for dividend investing.
In the last 3 months the price of CODI has falen by -61.22%. 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 5.02. CODI pays more dividend than 98.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CODI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.11% |
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.
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 2Y0.89%
EPS Next 3YN/A
6.43
-0.16 (-2.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.5%
Inst Owner Change-0.04%
Ins Owners1.71%
Ins Owner Change0.02%
Market Cap483.79M
Analysts78.18
Price Target20.16 (213.53%)
Short Float %2.8%
Short Ratio1.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.11% |
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)-34.73%
PT rev (3m)-34.73%
EPS NQ rev (1m)-10.63%
EPS NQ rev (3m)-13.55%
EPS NY rev (1m)-11.81%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-5.71%
Revenue NQ rev (3m)-5.59%
Revenue NY rev (1m)-5.71%
Revenue NY rev (3m)-5.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.7 | ||
| Fwd PE | 2.94 | ||
| P/S | 0.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.07 |
EPS(TTM)2.38
EY37.01%
EPS(NY)2.19
Fwd EY34.07%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)-0.9
OCFYN/A
SpS36.18
BVpS17.24
TBVpS-9.76
PEG (NY)N/A
PEG (5Y)0.41
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 | 1.24 |
F-Score3
WACC7.29%
ROIC/WACC0.87
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 Y-7.96%
EPS Next 2Y0.89%
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 Year2.41%
Revenue Next 2Y4.98%
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