Is Compass Diversified Stock a Good Investment?
Compass Diversified Investment Advice | CODI |
- Examine Compass Diversified's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Compass Diversified's leadership team and their track record. Good management can help Compass Diversified navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Multi-Sector Holdings space and any emerging trends that could impact Compass Diversified's business and its evolving consumer preferences.
- Compare Compass Diversified's performance and market position to its competitors. Analyze how Compass Diversified is positioned in terms of product offerings, innovation, and market share.
- Check if Compass Diversified pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Compass Diversified's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Compass Diversified Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Compass Diversified Holdings is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Compass Diversified Stock
Researching Compass Diversified's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 61.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.79. Some equities with similar Price to Book (P/B) outperform the market in the long run. Compass Diversified has Price/Earnings To Growth (PEG) ratio of 2.71. The entity recorded a loss per share of 1.88. The firm last dividend was issued on the 16th of January 2025.
To determine if Compass Diversified is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Compass Diversified's research are outlined below:
| The company reported the previous year's revenue of 2.06 B. Net Loss for the year was (38.74 M) with profit before overhead, payroll, taxes, and interest of 1.03 B. | |
| About 61.0% of the company shares are held by institutions such as insurance companies |
Compass Diversified uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Compass Diversified Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Compass Diversified's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Compass Diversified's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.64 B.Compass Diversified's profitablity analysis
The company has Profit Margin (PM) of 0.06 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.12 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.12.Determining Compass Diversified's profitability involves analyzing its financial statements and using various financial metrics to determine if Compass Diversified is a good buy. For example, gross profit margin measures Compass Diversified's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Compass Diversified's profitability and make more informed investment decisions.
Basic technical analysis of Compass Stock
As of the 18th of January 2025, Compass Diversified shows the Risk Adjusted Performance of 0.0252, downside deviation of 1.79, and Mean Deviation of 1.26. Compass Diversified technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Compass Diversified's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Compass Diversified insiders, such as employees or executives, is commonly permitted as long as it does not rely on Compass Diversified's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Compass Diversified insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Compass Diversified's Outstanding Corporate Bonds
Compass Diversified issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Compass Diversified uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Compass bonds can be classified according to their maturity, which is the date when Compass Diversified Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Compass Diversified's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Compass Diversified's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0252 | |||
| Market Risk Adjusted Performance | 0.0641 | |||
| Mean Deviation | 1.26 | |||
| Semi Deviation | 1.71 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 4234.2 | |||
| Standard Deviation | 1.83 | |||
| Variance | 3.36 | |||
| Information Ratio | 0.0074 | |||
| Jensen Alpha | 0.0212 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.0076 | |||
| Treynor Ratio | 0.0541 | |||
| Maximum Drawdown | 11.43 | |||
| Value At Risk | (2.52) | |||
| Potential Upside | 2.1 | |||
| Downside Variance | 3.21 | |||
| Semi Variance | 2.94 | |||
| Expected Short fall | (1.25) | |||
| Skewness | 0.8457 | |||
| Kurtosis | 3.71 |
| Risk Adjusted Performance | 0.0252 | |||
| Market Risk Adjusted Performance | 0.0641 | |||
| Mean Deviation | 1.26 | |||
| Semi Deviation | 1.71 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 4234.2 | |||
| Standard Deviation | 1.83 | |||
| Variance | 3.36 | |||
| Information Ratio | 0.0074 | |||
| Jensen Alpha | 0.0212 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.0076 | |||
| Treynor Ratio | 0.0541 | |||
| Maximum Drawdown | 11.43 | |||
| Value At Risk | (2.52) | |||
| Potential Upside | 2.1 | |||
| Downside Variance | 3.21 | |||
| Semi Variance | 2.94 | |||
| Expected Short fall | (1.25) | |||
| Skewness | 0.8457 | |||
| Kurtosis | 3.71 |
Consider Compass Diversified's intraday indicators
Compass Diversified intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Compass Diversified stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Compass Diversified time-series forecasting models is one of many Compass Diversified's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Compass Diversified's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Compass Stock media impact
Far too much social signal, news, headlines, and media speculation about Compass Diversified that are available to investors today. That information is available publicly through Compass media outlets and privately through word of mouth or via Compass internal channels. However, regardless of the origin, that massive amount of Compass data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Compass Diversified news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Compass Diversified relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Compass Diversified's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Compass Diversified alpha.
Compass Diversified Corporate Directors
| Kaajal Ali | Director Culture | Profile | |
| Alana Siska | Director Communications | Profile | |
| Larry Enterline | Independent Director | Profile | |
| Sarah McCoy | Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Compass Diversified Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Multi-Sector Holdings space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Compass Diversified. If investors know Compass will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Compass Diversified listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Compass Diversified is measured differently than its book value, which is the value of Compass that is recorded on the company's balance sheet. Investors also form their own opinion of Compass Diversified's value that differs from its market value or its book value, called intrinsic value, which is Compass Diversified's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Compass Diversified's market value can be influenced by many factors that don't directly affect Compass Diversified's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Compass Diversified's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Compass Diversified is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compass Diversified's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.