CompoSecure (CMPO) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: 2.19%
• Average Volume (3M): 762.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -5.74%
• EPS Growth: -192.12%
• Country: US
• Employees: 1,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.25
• Shares Outstanding: 102,317,850
• 10 Day Avg. Volume: 800,580
• 30 Day Avg. Volume: 762,395
• PEG Ratio: 0.01
• Price to Book (P/B): -0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.90
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $15.00
• Price Target Upside: 9.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: $14.50 ▲(5.45%Upside)

CompoSecure's strong revenue growth and positive technical indicators are promising. However, significant financial stability concerns and a negative P/E ratio weigh down the overall score. The earnings call and corporate events add moderate support but do not offset the primary risks.

Positive Factors

Financial Performance

CMPO's solid 1Q results and reiterated underlying guidance should be well received, with ongoing sales momentum and a stable demand environment expected to support growth.

Strategic Growth

Potential acquisition opportunities within CMPO's value chain and adjacent companies are being considered.

Negative Factors

Financial Outlook

Planned investments aimed at spurring growth and enhancing efficiency weigh on FY25 outlook.

Stock Price Performance

CompoSecure’s share price declined by ~10% during extended trading after the company released a 4Q24 report that offered a mixed bag of metrics, including a top-line miss and a bottom-line beat versus Street estimates.

CompoSecure Business Overview & Revenue Model

Company Description

CompoSecure, Inc. manufactures and designs metal, plastic, composite ID, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which comprise the Arculus Key card Cold Storage hardware device and companion Arculus Wallet mobile App to keep the Private Key in the Arculus Key card highly secure and store cryptocurrency and digital assets. It serves financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists. The company was founded in 1910 and is based in Somerset, New Jersey.

How the Company Makes Money

CompoSecure makes money primarily through the sale of its high-end metal payment cards to financial institutions, including banks and credit unions, which then offer these cards to their customers as part of their premium account packages. Additionally, the company generates revenue through associated services such as card personalization and fulfillment. CompoSecure's partnerships with major payment networks and financial institutions are significant contributors to its earnings, allowing it to access a wide market and maintain strong business relationships. The company also benefits from the growing trend of digital payment solutions, offering products that enhance transaction security, which contributes to its revenue streams.

CompoSecure Financial Statement Overview

Summary

CompoSecure exhibits strong revenue growth and effective cash flow management. However, profitability challenges and concerning financial stability, including negative equity and significant leverage, present substantial risks.

Income Statement

CompoSecure has shown consistent revenue growth over the years, with a notable increase from $243 million in 2019 to $420 million in 2024. However, despite the revenue growth, the company has faced challenges in profitability, as indicated by a net loss in 2024. Gross profit margins have remained strong, but the decline in net income and EBIT margin suggests potential inefficiencies or increased expenses.

Balance Sheet

The company's financial stability is concerning, with negative stockholders' equity and high total liabilities, indicating potential solvency issues. The debt-to-equity ratio is unfavorable due to negative equity, highlighting significant leverage. Although total assets have grown, the equity ratio remains negative, reflecting substantial financial risk.

Cash Flow

CompoSecure has demonstrated strong operating cash flow, with consistent growth in free cash flow over the years, indicating effective cash management. The operating cash flow to net income ratio is robust, suggesting efficient conversion of income into cash. However, the high level of financing cash flow indicates reliance on external funding.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
376.38M	420.57M	390.63M	378.48M	267.90M	260.59M
	Gross Profit
192.76M	219.23M	209.08M	219.64M	144.80M	132.63M
	EBIT
82.53M	107.62M	119.09M	114.89M	81.40M	83.96M
	EBITDA
-80.89M	-50.52M	154.60M	145.43M	101.36M	93.87M
	Net Income Common Stockholders
-7.63M	-53.72M	19.24M	131.81M	83.40M	77.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.51M	77.46M	41.22M	13.64M	21.90M	13.42M
	Total Assets
292.32M	473.92M	201.04M	162.94M	131.40M	81.36M
	Total Debt
0.00	201.64M	344.64M	367.61M	387.60M	255.89M
	Net Debt
-9.51M	124.18M	303.43M	353.97M	365.70M	242.47M
	Total Liabilities
379.63M	617.36M	406.81M	454.94M	539.10M	273.91M
	Stockholders Equity
-87.31M	-143.45M	-802.36M	-292.00M	-407.70M	-192.55M
Cash Flow		Free Cash Flow
91.98M	122.14M	93.37M	83.73M	73.00M	79.56M
	Operating Cash Flow
98.81M	129.55M	104.31M	92.78M	77.80M	87.06M
	Investing Cash Flow
-69.02M	-9.95M	-10.94M	-9.05M	-4.80M	-7.50M
	Financing Cash Flow
-75.43M	-83.36M	-65.79M	-92.03M	-64.50M	-92.87M

CompoSecure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPO, the sentiment is Positive. The current price of 13.75 is above the 20-day moving average (MA) of 13.27, above the 50-day MA of 11.82, and above the 200-day MA of 12.03, indicating a bullish trend. The MACD of 0.57 indicates Positive momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 66.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMPO.

CompoSecure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	78 Outperform	$1.58B	3.50	14.14%	3.99%	4.93%	-17.08%
NMM	77 Outperform	$1.13B	3.49	11.19%	0.52%	0.28%	-17.08%
GSL	76 Outperform	$898.68M	2.38	27.25%	8.32%	3.94%	19.85%
CMRE	75 Outperform	$1.05B	3.59	12.57%	5.26%	17.77%	-5.90%
SCS	74 Outperform	$1.23B	10.54	12.70%	3.74%	0.20%	50.50%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
CMPO	60 Neutral	$1.40B	―	8.26%	2.19%	-5.74%	-192.12%

CompoSecure Corporate Events

CompoSecure CFO Retirement Announcement and Financial Outlook

On June 11, 2025, CompoSecure announced the upcoming retirement of its Chief Financial Officer, Tim Fitzsimmons, who will step down once a successor is appointed, expected by the second half of 2025. Fitzsimmons will continue as a consultant until January 2027 to ensure a smooth transition. The company reaffirmed its full-year 2025 guidance, projecting mid-single-digit growth in Consolidated Net Sales and Pro Forma Adjusted EBITDA, indicating stability and confidence in its financial outlook.

The most recent analyst rating on (CMPO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

CompoSecure Approves Key Charter Amendments at Annual Meeting

On May 28, 2025, CompoSecure, Inc. held its 2025 Annual Meeting of Stockholders where key amendments to the company’s charter were approved, including an increase in authorized shares and the removal of obsolete provisions. Additionally, the meeting saw the election of three directors, approval of amendments to the company’s equity plan, and the ratification of Grant Thornton LLP as the independent auditor, indicating strategic moves to enhance corporate governance and operational flexibility.

The most recent analyst rating on (CMPO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

CompoSecure Reports Strong Q1 2025 Financial Results

On May 12, 2025, CompoSecure announced its financial results for the first quarter ending March 31, 2025, reporting operating results in line with expectations and reiterating its full-year guidance. The company completed the spin-off of Resolute Holdings Management, Inc. and adopted the equity method of accounting for its results. CompoSecure reported strong demand and sales momentum, particularly in its Arculus business, and highlighted record results that contributed positively to its financial performance. The company’s strategic investments and implementation of the CompoSecure Operating System are expected to drive continued growth and efficiency throughout 2025.

The most recent analyst rating on (CMPO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

CompoSecure Board Values Spin-Off Shares at $106.4M

On February 28, 2025, CompoSecure, Inc. completed the spin-off of Resolute Holdings Management, Inc. by distributing shares of Resolute Holdings to its Class A common stockholders. This spin-off was treated as a taxable event, resulting in taxable gain for CompoSecure and taxable dividend income for its shareholders. On May 8, 2025, the board of directors valued the distributed shares at $106.4 million, or approximately $12.48 per share.