CompoSecure (CMPO) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 970.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• 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: 125,195,366
• 10 Day Avg. Volume: 1,027,056
• 30 Day Avg. Volume: 970,812
• 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: 0.89
• Enterprise Value/Revenue: 13.49
• Enterprise Value/Gross Profit: 26.68
• Enterprise Value/Ebitda: -10.11
• 1Y Price Target: $24.80
• Price Target Upside: 27.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.02
• Revenue Forecast (FY): $460.89M

• Rating: 53 Neutral
• Price Target: $18.50 ▼(-4.98% Downside)

CompoSecure's overall stock score is driven by strong earnings call results, including raised guidance and strategic acquisitions, which are offset by financial instability and negative valuation metrics. Technical indicators suggest bearish momentum, adding to the cautious outlook.

Positive Factors

Strategic Acquisition

The acquisition of Husky Technologies is expected to enhance long-term growth through diversification and operational efficiencies, providing a durable competitive advantage.

Improved Margins

Improved gross margins indicate better cost management and pricing power, which can sustain profitability and enhance financial stability over time.

Cash Flow Management

Effective cash flow management and debt reduction enhance financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Negative Factors

Profitability Challenges

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

Negative Equity

Negative equity and high leverage pose solvency risks, limiting the company's ability to finance growth and weather economic downturns.

Decline in International Sales

A significant decline in international sales highlights potential market penetration issues, affecting revenue diversification and growth prospects.

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: 19.47
• 50DMA: Negative
• 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 19.47 is below the 20-day moving average (MA) of 20.01, below the 50-day MA of 20.11, and above the 200-day MA of 15.43, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.99 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	73 Outperform	$3.19B	10.22	27.28%	0.70%	1.55%	701.41%
WOR	70 Outperform	$2.75B	25.93	11.50%	1.26%	-39.38%	175.22%
IIIN	69 Neutral	$614.73M	15.09	11.36%	3.46%	22.39%	112.75%
PRLB	65 Neutral	$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	$342.77M	29.36	5.06%	―	-12.38%	-0.71%
CMPO	53 Neutral	$2.44B	―	―	―	-61.71%	-622.81%

CompoSecure Corporate Events

CompoSecure Reports Strong Q3 Results and Merges with Husky

CompoSecure, Inc., a prominent player in the metal payment cards and security solutions industry, has reported robust financial results for the third quarter of 2025 and announced a significant business combination with Husky Technologies. The company, known for its innovative payment card technology and security solutions, is set to merge with Husky Technologies, a leader in engineered equipment manufacturing, creating a diversified entity valued at approximately $7.4 billion.

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.

The most recent analyst rating on (CMPO) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

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.

The most recent analyst rating on (CMPO) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

CompoSecure Issues Shares Following Earnout Achievement

CompoSecure, Inc. completed its business combination on December 27, 2021, as part of a merger agreement initiated on April 19, 2021. The company achieved the first phase of earnouts on December 13, 2024, and the second phase on September 8, 2025, resulting in the issuance of 4.3 million shares of Class A common stock, adjusted for a spin-off transaction, upon meeting specified stock price thresholds.

The most recent analyst rating on (CMPO) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

CompoSecure Transfers Stock Listing to NYSE

On September 5, 2025, CompoSecure announced its decision to transfer the listing of its Class A Common Stock from Nasdaq to the New York Stock Exchange (NYSE), effective September 23, 2025. The move is expected to enhance visibility for investors, while the company’s redeemable warrants will remain listed on Nasdaq.

The most recent analyst rating on (CMPO) stock is a Sell with a $16.00 price target. To see the full list of analyst forecasts on CompoSecure stock, see the CMPO Stock Forecast page.

CompoSecure Inc. Earnings Call Highlights Positive Growth

The recent earnings call for CompoSecure Inc. painted a largely positive picture of the company’s financial health and future prospects. The management expressed optimism, highlighting strong growth in domestic sales, an increase in EBITDA, and improved margins. The company also raised its guidance, buoyed by successful launches of high-profile card programs. However, a decline in international sales was noted as a challenge, attributed to fluctuations in smaller-scale operations. Overall, the sentiment was optimistic about CompoSecure’s growth trajectory and operational efficiencies.

CompoSecure Achieves Record Q2 2025 Results

CompoSecure, Inc. is a leading provider of metal payment cards and security solutions, operating primarily in the financial technology sector. The company is known for its innovative payment card technology and authentication capabilities.

CompoSecure Announces Record Q2 2025 Financial Results

On August 7, 2025, CompoSecure announced record financial results for the second quarter of 2025, driven by strong domestic demand and growth in both traditional banking and fintech sectors. The company reported a 10% increase in Non-GAAP net sales and improved gross margins, attributed to the CompoSecure Operating System. New customer programs and partnerships, including the launch of the Coinbase One Card, highlight CompoSecure’s innovative product offerings and strategic market positioning. The company also raised its full-year 2025 guidance, reflecting its continued operational and commercial momentum.

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.