CompoSecure (CMPO) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: 2.38%
• Average Volume (3M): 787.60K
• 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: 90
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.25
• Shares Outstanding: 102,317,850
• 10 Day Avg. Volume: 833,810
• 30 Day Avg. Volume: 787,596
• PEG Ratio: 0.08
• Price to Book (P/B): -6.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 7.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 59 Neutral
• Price Target: $14.50 ▲(4.17%Upside)

CompoSecure's strong revenue growth and cash management are offset by profitability challenges and negative equity, leading to a moderate financial performance score. Technical indicators suggest caution due to potential overbought conditions. The stock's valuation is negatively impacted by its financial difficulties, while recent corporate events show strategic initiatives for improvement.

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 (CMPO) is a leading provider in the fintech and security industries, specializing in the design and manufacture of premium financial cards and secure payment solutions. The company's core products include metal payment cards, which have gained popularity for their durability and aesthetic appeal, and digital security solutions that enhance payment security for financial institutions and consumers.

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, which are positive indicators for future prospects. However, the company faces significant challenges with profitability and financial stability, highlighted by negative equity and substantial leverage. Addressing these issues will be crucial for sustainable growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
420.57M	390.63M	378.48M	267.90M	260.59M
	Gross Profit
219.23M	209.08M	219.64M	144.80M	132.63M
	EBIT
107.62M	119.09M	114.89M	81.40M	83.96M
	EBITDA
-51.63M	154.60M	145.43M	101.36M	93.87M
	Net Income Common Stockholders
-53.72M	19.24M	131.81M	83.40M	77.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.46M	41.22M	13.64M	21.90M	13.42M
	Total Assets
473.92M	201.04M	162.94M	131.40M	81.36M
	Total Debt
17.25M	344.64M	367.61M	387.60M	255.89M
	Net Debt
-60.21M	303.43M	353.97M	365.70M	242.47M
	Total Liabilities
617.36M	406.81M	454.94M	539.10M	273.91M
	Stockholders Equity
-143.45M	-802.36M	-292.00M	-407.70M	-192.55M
Cash Flow		Free Cash Flow
122.14M	93.37M	83.73M	73.00M	79.56M
	Operating Cash Flow
129.55M	104.31M	92.78M	77.80M	87.06M
	Investing Cash Flow
-9.95M	-10.94M	-9.05M	-4.80M	-7.50M
	Financing Cash Flow
-83.36M	-65.79M	-92.03M	-64.50M	-92.87M

CompoSecure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 13.92 is above the 20-day moving average (MA) of 12.99, above the 50-day MA of 11.65, and above the 200-day MA of 11.96, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 73.31 is Negative, neither overbought nor oversold. The STOCH value of 84.10 is Negative, 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	$1.61B	3.56	14.14%	3.86%	4.93%	-17.08%
NMM	77 Outperform	$1.16B	3.57	11.19%	0.51%	0.28%	-17.08%
GSL	76 Outperform	$915.77M	2.43	27.25%	7.29%	3.94%	19.85%
CMRE	75 Outperform	$1.10B	3.76	12.57%	5.02%	17.77%	-5.90%
SCS	74 Outperform	$1.19B	10.20	12.70%	3.86%	0.20%	50.50%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
CMPO	59 Neutral	$1.42B	―	8.26%	2.38%	-5.74%	-192.12%

CompoSecure Corporate Events

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.