Compass Diversified

$ 10.11 1.92 %

Compass Diversified functions as a private equity firm, specializing in late-stage and middle-market investments. The company employs various strategies, including leveraged buyouts, industry consolidation efforts, recapitalizations, and strategic add-on acquisitions. Their investment focus is on North American enterprises, particularly those in niche industrial or branded consumer segments. They also target businesses within manufacturing, distribution, general consumer products, business services, safety & security, electronic components, as well as the food and foodservice sectors. Typically, Compass Diversified allocates between $100 million and $800 million per investment, seeking companies with an EBITDA ranging from $15 million to $80 million. A key aspect of their approach is to secure controlling or majority ownership interests in their portfolio companies, often leveraging these as platforms for subsequent acquisitions. The firm funds these ventures directly from its balance sheet and generally holds investments for a period of five to seven years. Founded in 2005, Compass Diversified's main office is located in Westport, Connecticut, with an additional presence in Costa Mesa, California.

CEO: Elias Joseph Sabo - https://compassdiversified.com

Price objectif

$15 48.37 %

Recommandation

Hold

DCF

$ -26.81

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CODI vs S&P500

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Quick ratio

1.56

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

-2.76

may indicate that the company is undervalued or has poor growth prospects.

EPS

-3.66

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

-46.27 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

0.98 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

6.86

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

4.64

means it relies more on debt, which can increase financial risk.

Free cash flow per share

0.13

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

-25.38 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
0.28 indicates a high risk of bankruptcy
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Cash / Debt

Cash Ratio
0.18 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.63 indicates a moderate level of debt, which is generally acceptable but may present some risk
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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