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 101 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 has a decent growth rate and is not valued too expensively.
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.
In multiple years CODI reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -3.12%, CODI is not doing good in the industry: 87.13% of the companies in the same industry are doing better.
The Return On Equity of CODI (-9.75%) is worse than 83.17% of its industry peers.
The Return On Invested Capital of CODI (6.33%) is better than 74.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CODI is below the industry average of 7.77%.
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 40.59% of its industry peers.
CODI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.63%, CODI is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
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
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.
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 better Altman-Z score (1.23) than 64.36% 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.
CODI has a Debt to Equity ratio of 1.36. This is comparable to the rest of the industry: CODI outperforms 42.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC0.87
WACC7.26%
2.3 Liquidity
A Current Ratio of 4.07 indicates that CODI has no problem at all paying its short term obligations.
CODI's Current ratio of 4.07 is amongst the best of the industry. CODI outperforms 87.13% 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 70.30% 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.
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!
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
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.
CODI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.98% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 2.74 indicates a rather cheap valuation of CODI.
99.01% of the companies in the same industry are more expensive than CODI, based on the Price/Earnings ratio.
CODI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
CODI is valuated cheaply with a Price/Forward Earnings ratio of 2.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CODI indicates a rather cheap valuation: CODI is cheaper than 99.01% of the companies listed in the same industry.
CODI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.74 | ||
| Fwd PE | 2.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CODI is valued cheaply inside the industry as 92.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y0.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.52%, CODI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.75, CODI pays a better dividend. On top of this CODI pays more dividend than 95.05% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.52% |
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 2Y0.89%
EPS Next 3YN/A
6.51
+0.13 (+2.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.5%
Inst Owner Change-6.77%
Ins Owners1.71%
Ins Owner Change0.02%
Market Cap489.81M
Analysts80
Price Target20.16 (209.68%)
Short Float %4.47%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.52% |
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)-34.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.74 | ||
| Fwd PE | 2.97 | ||
| P/S | 0.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.05 |
EPS(TTM)2.38
EY36.56%
EPS(NY)2.19
Fwd EY33.65%
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)0.42
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
WACC7.26%
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