Compass Diversified Holdings (CODI.PC) stock analysis
Close on Oct 30, 2026Market cap $1.59BP/E –Yield 2.37%
StockData Score
Prices as of Oct 30, 2026How the score works
Weak5 of 30 checks passed
Compass Diversified passes 5 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 1/6
- Past performance
- 0/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 31.4% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $11.15 is below our fair value estimate of $16.26.
EV/EBITDA below its 5-year median
Compass Diversified's EV/EBITDA of 12.1 is below its 5-year median of 19.9.
Gross margin improving
Gross margin was 44.6% over the last twelve months, against 42.1% a year earlier.
What to watch
Return on equity under 15%
Return on equity was -17.7% over the last twelve months and averaged -10.0% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 2.2%, below the 10% that usually covers the cost of capital.
High debt
Debt is 335% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.
Valuation3/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA below its 5-year median
Compass Diversified's EV/EBITDA of 12.1 is below its 5-year median of 19.9.
P/B above the industry
Compass Diversified's price-to-book of 1.78 is above the Consumer discretionary median of 1.19.
Trading below fair value
The share price of $11.15 is below our fair value estimate of $16.26.
Margin of safety over 20%
The price is 31.4% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -4.8% over the last twelve months; the Consumer discretionary median is -0.0%.
Guidance lowered
Compass Diversified lowered its 2026 Subsidiary Adjusted EBITDA - Industrial outlook on Aug 10, 2026.
Gross margin improving
Gross margin was 44.6% over the last twelve months, against 42.1% a year earlier.
Past performance0/6
Return on equity under 15%
Return on equity was -17.7% over the last twelve months and averaged -10.0% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 2.2%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Compass Diversified's return on equity of -17.7% is below the Consumer discretionary median of -5.8%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was -5.3% over the last twelve months, against a 5-year average of -2.8%.
Net margin below the industry
Compass Diversified's net margin of -5.3% is below the Consumer discretionary median of -2.2%.
Financial health1/6
High debt
Debt is 335% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 81.8% five years ago to 335%.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 7.0% of total debt; we look for at least 20%.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 2.26 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 0.49; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Compass Diversified has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$16.26
The share price is 31% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 14.0× | 19.9× | 8.1× | $18.29 | 78% |
| P/B | 1.5× | 1.7× | 1.2× | $9.12 | 22% |
| Fair value | $16.26 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Consumer discretionary median 18.5
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $6.46M
- Value traded per 1% price move
- $4.36M
Downside
High risk
- Typical loss in a bad month
- 29.1%
- Volatility (annualized)
- 64%
- Sharpe ratio, 1 year
- 0.92
- Beta to the S&P 500 (5Y)
- 1.33
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.8% | +2.2% | +5.3% | +9.9% | |
| Gross profit | +8.5% | +7.8% | +8.8% | +13.0% | |
| Operating income | – | -37.0% | -32.3% | -14.0% | |
| Dividend per share | -50.0% | -20.6% | -19.1% | -10.0% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 6.5% | 2.1% | -40.4% | |
| Return on assets | 3.4% | 1.0% | -7.1% | |
| Current ratio | 2.24 | 2.40 | 2.42 | |
| Debt to equity | 0.65 | 0.82 | 4.25 | |
| Net debt to EBITDA | 4.78× | 4.63× | 11.78× | |
| Interest coverage | 0.8× | 1.7× | 0.1× | |
| Inventory turnover | 4.8× | 2.7× | 2.2× | |
| Capex to revenue | 2.5% | 2.0% | 2.4% | |
| Diluted shares | 55M | 63M | 75M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Compass Diversified generated $355.25M from operations and spent $268.24M on capital expenditure, dividends and share buybacks. 93% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -12.1% | 0.59× | 5.65× | -40.4% |
| FY2024 | -11.7% | 0.54× | 4.12× | -26.0% |
| FY2023 | 6.4% | 0.50× | 3.77× | 12.0% |
| FY2022 | -3.4% | 0.53× | 3.34× | -6.0% |
| FY2021 | 6.6% | 0.60× | 2.60× | 10.4% |
| FY2020 | 1.6% | 0.64× | 2.03× | 2.1% |
| FY2019 | 23.9% | 0.59× | 2.16× | 30.6% |
| FY2018 | -0.4% | 0.65× | 2.42× | -0.7% |
| FY2017 | 2.8% | 0.56× | 2.08× | 3.2% |
| FY2016 | 5.6% | 0.61× | 1.90× | 6.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$226.42M
- Cash generatingOperating cash flow above zero-$6.83M
- Return on assets improvedROA up on the prior year-6.3% → -6.9%
- Earnings backed by cashOperating cash flow above net income-$6.83M vs -$226.42M
- Less leverageLong-term debt to assets fell0.0% → 60.5%
- Better liquidityCurrent ratio rose0.40 → 2.42
- No dilutionShare count did not rise75M → 75M
- Gross margin improvedGross margin up on the prior year41.97% → 43.47%
- More efficientAsset turnover rose0.54 → 0.57