Compass Diversified

$ 22.62 0.87 %

Compass Diversified operates as a private equity firm, employing diverse investment strategies that include bolt-on acquisitions, leveraged buyouts, sector consolidation initiatives, recapitalizations, and capital infusions into late-stage and middle-market companies. The firm primarily targets investments within niche industrial and branded consumer sectors. Its portfolio focus also extends to manufacturing, distribution, a broad range of consumer products, business services, safety and security solutions, electronic components, as well as the food and foodservice industries. Geographically, its preference is for North American-based enterprises. Financially, Compass Diversified typically deploys capital ranging from $100 million to $800 million into businesses demonstrating an annual EBITDA between $15 million and $80 million. The company aims to secure controlling ownership positions in its portfolio entities, frequently pursuing a majority stake, and retains the capability to execute further platform acquisitions. Uniquely, the firm leverages its own balance sheet for investments. Its typical holding period for these investments ranges from five to seven years. Established in 2005, Compass Diversified maintains its primary operations in Westport, Connecticut, with a secondary office located in Costa Mesa, California.

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

Price objectif

-

Recommandation

Hold

DCF

$ -26.81

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CODI-PB 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

26.27

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

0.86

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
0.22 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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