CompoSecure (CMPO) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -61.71%
• EPS Growth: -622.81%
• Country: US
• Employees: 1,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.29
• Shares Outstanding: 126,411,160
• 10 Day Avg. Volume: 765,826
• 30 Day Avg. Volume: 1,091,106
• PEG Ratio: 0.05
• Price to Book (P/B): -3.90
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 4.58
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 13.49
• Enterprise Value/Gross Profit: 26.68
• Enterprise Value/Ebitda: -10.11
• 1Y Price Target: $25.20
• Price Target Upside: 23.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.02
• Revenue Forecast (FY): $462.45M

• Rating: 57 Neutral
• Price Target: $21.00 ▲(2.59% Upside)

CompoSecure's overall stock score reflects strong earnings call performance and positive technical indicators, offset by financial stability concerns and valuation challenges. The strategic acquisition of Husky Technologies offers growth potential, but legal issues pose risks.

Positive Factors

Revenue Growth

The consistent growth in net sales indicates a strong demand for CompoSecure's products, enhancing its market position and long-term revenue potential.

Strategic Acquisition

The acquisition of Husky Technologies is anticipated to diversify CompoSecure's offerings and improve operational efficiencies, supporting sustainable growth.

Cash Flow Management

Effective cash flow management and debt reduction enhance financial stability, providing more flexibility for future investments and growth initiatives.

Negative Factors

Financial Stability Concerns

Negative equity and high leverage pose risks to financial stability, potentially limiting CompoSecure's ability to withstand economic downturns.

Profitability Challenges

Ongoing profitability issues, despite revenue growth, suggest inefficiencies or rising costs that could hinder long-term financial health.

Legal Challenges

Legal disputes regarding the Proxy Statement may delay strategic initiatives and increase costs, impacting CompoSecure's operational and financial plans.

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 generates revenue through the manufacture and sale of secure payment card products, which include EMV-compliant cards and other customized card solutions. Their revenue model is primarily based on product sales to banks and financial institutions. Key revenue streams include one-time sales of card production, personalization services, and ongoing contracts for card issuance and management. Additionally, strategic partnerships with major payment networks and technology providers enhance their market reach and enable them to offer integrated solutions, contributing to their overall earnings. The company may also benefit from recurring revenue through maintenance contracts and service agreements associated with card management systems.

CompoSecure Financial Statement Overview

Summary

CompoSecure shows strong revenue growth and effective cash flow management, but faces challenges with profitability and financial stability, highlighted by negative equity and substantial leverage.

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	160.68M	420.57M	390.63M	378.48M	267.95M	260.59M
Gross Profit	81.28M	219.23M	209.08M	219.64M	144.85M	132.63M
EBITDA	-214.40M	-50.52M	154.60M	167.29M	103.22M	93.87M
Net Income	-216.66M	-53.72M	19.24M	18.66M	3.15M	77.81M
Balance Sheet
Total Assets	505.48M	473.92M	201.04M	162.94M	131.35M	81.36M
Cash, Cash Equivalents and Short-Term Investments	127.36M	77.46M	41.22M	13.64M	21.94M	13.42M
Total Debt	0.00	201.64M	344.64M	367.61M	393.36M	255.89M
Total Liabilities	353.01M	617.36M	406.81M	454.94M	539.00M	273.91M
Stockholders Equity	152.47M	-143.45M	-802.36M	-892.23M	-1.02B	-192.55M
Cash Flow
Free Cash Flow	23.20M	122.14M	93.37M	83.73M	73.03M	79.56M
Operating Cash Flow	26.52M	129.55M	104.31M	92.78M	77.78M	87.06M
Investing Cash Flow	-65.12M	-9.95M	-10.94M	-9.05M	-4.75M	-7.50M
Financing Cash Flow	113.29M	-83.36M	-65.79M	-92.03M	-64.51M	-92.87M

CompoSecure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 20.47 is above the 20-day moving average (MA) of 19.70, above the 50-day MA of 20.07, and above the 200-day MA of 15.80, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 61.55 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
AZZ	79 Outperform	$3.30B	10.56	27.28%	0.67%	1.55%	701.41%
IIIN	73 Outperform	$631.23M	15.50	11.36%	3.37%	22.39%	112.75%
WOR	71 Outperform	$2.84B	26.74	11.50%	1.21%	-39.38%	175.22%
PRLB	70 Outperform	$1.14B	78.80	2.21%	―	2.82%	-34.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	63 Neutral	$386.25M	32.76	5.06%	―	-12.38%	-0.71%
CMPO	57 Neutral	$2.56B	―	―	―	-61.71%	-622.81%

CompoSecure Corporate Events

CompoSecure Faces Legal Challenges Over Proxy Statement

On November 2, 2025, CompoSecure, Inc. entered into a Share Purchase Agreement with Husky Technologies Limited and other parties, involving a combination valued at approximately $3.953 billion in cash and shares. Concurrently, CompoSecure agreed to a private placement of shares for about $1.96 billion. The company has faced legal challenges from shareholders alleging incomplete and misleading information in its Proxy Statement, which could affect the approval of the transaction at the upcoming special meeting on December 23, 2025. To mitigate risks and costs of litigation, CompoSecure has decided to voluntarily supplement the Proxy Statement, although it denies any wrongdoing.

CompoSecure Announces Share Purchase Agreement with Husky

On November 2, 2025, CompoSecure, Inc. announced a Share Purchase Agreement with Husky Technologies Limited and its affiliates, valued at approximately $3.953 billion in cash and shares. This transaction will result in Husky becoming an indirect wholly owned subsidiary of CompoSecure. The agreement is subject to several closing conditions, including shareholder approval and regulatory clearances. The transaction is expected to enhance CompoSecure’s market position and operational capabilities, with potential implications for stakeholders, such as changes in the company’s board and management agreements.

CompoSecure Announces Redemption of Public Warrants

On November 3, 2025, CompoSecure, Inc. announced the redemption of all its outstanding public warrants to purchase shares of its Class A common stock. The redemption date is set for December 3, 2025, and warrant holders have until that date to exercise their warrants on a cashless basis. Any unexercised warrants will be canceled, and holders will receive $0.01 per warrant. This move follows the company’s right to redeem the warrants as the stock price met certain criteria, potentially impacting stakeholders by altering their rights and investment strategies.

CompoSecure Announces Strong Q3 2025 Financial Results

On November 3, 2025, CompoSecure announced its strong financial results for the third quarter of 2025, with significant growth in net sales and gross profit compared to the previous year. The company also revealed a business combination with Husky Technologies, a manufacturer of engineered equipment, valuing the combined entity at approximately $7.4 billion. This strategic move aims to enhance CompoSecure’s market position and create new opportunities for growth. The transaction is expected to close in the first quarter of 2026 and is anticipated to be accretive to earnings per share in the first full year post-closing.