Compass Diversified (CODI)
NYSE:CODI
Top Page
Compass Diversified Holdings
(NYSE:CODI)
Select Model
Select Model
Rating:56Neutral
Price Target:
$8.00
▼(-6.87% Downside)
Action:ReiteratedDate:04/02/26
The score is held down primarily by weak recent financial performance (losses, negative cash flow, and high leverage). Technical momentum is a meaningful offset as the stock trades above key moving averages with positive MACD. Valuation is mixed—very high yield helps, but negative earnings (negative P/E) and execution risk around deleveraging and macro uncertainty limit the upside.
Positive Factors
Subsidiary EBITDA Growth (ex-Lugano)
Consistent adjusted EBITDA growth across subsidiaries (ex-Lugano) indicates underlying operating resilience and scalable margins. Durable EBITDA expansion increases the firm's ability to convert earnings into cash over time, supporting deleveraging, reinvestment in core businesses, and long-term value creation if sustained.
Negative Factors
Elevated Leverage
Very high leverage materially restricts financial flexibility, increases interest and refinancing risk, and raises sensitivity to revenue or margin shocks. Restoring target leverage will require sustained cash generation or asset sales; until achieved, balance-sheet risk limits M&A capacity and raises the chance of covenant stress in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Subsidiary EBITDA Growth (ex-Lugano)
Consistent adjusted EBITDA growth across subsidiaries (ex-Lugano) indicates underlying operating resilience and scalable margins. Durable EBITDA expansion increases the firm's ability to convert earnings into cash over time, supporting deleveraging, reinvestment in core businesses, and long-term value creation if sustained.
Read all positive factors
Compass Diversified Holdings (CODI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$646.28M
Dividend Yield20.53%
Average Volume (3M)1.39M
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth-15.85%
EPS Growth-59.42%
CountryUS
Employees3,340
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-1.20
Shares Outstanding75,235,970
10 Day Avg. Volume1,540,648
30 Day Avg. Volume1,386,851
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.82
Price to Sales (P/S)0.19
P/FCF Ratio-7.06
Enterprise Value/Market Cap3.80
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit3.40
Enterprise Value/Ebitda155.30
Forecast
1Y Price Target
$11.50Price Target Upside33.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.1
Revenue Forecast (FY)$1.87B
Compass Diversified Holdings Business Overview & Revenue Model
Company Description
Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, ma...
How the Company Makes Money
CODI makes money primarily through the operating results of its majority-owned subsidiary businesses. Each subsidiary generates revenue by selling its own products and/or services to end customers (consumer/retail and e-commerce channels for brand...
Compass Diversified Holdings Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but pragmatic tone: operational resilience and meaningful adjusted EBITDA growth (ex-Lugano), strong consumer brand momentum (notably BOA and Honey Pot), and clear, prioritized plans to reduce leverage. Offsetting these positives were significant near-term negatives — Lugano-related bankruptcy and restatement charges, a large GAAP loss for the year, elevated leverage (~5.47x), and material geopolitical/tariff-driven headwinds affecting industrial businesses and consumer demand. Management presented concrete actions (sale processes, cost discipline, cash generation targets) and a credible medium-term target to restore the balance sheet, but execution and macro clarity are key to realizing the upside.Positive Updates
Subsidiary Adjusted EBITDA Growth (Excluding Lugano)
Subsidiary adjusted EBITDA was $345.8 million, up 8.8% year-over-year excluding Lugano, driven by consumer strength and operational leverage.
Negative Updates
Large GAAP Losses and One-Time Charges
GAAP net loss for Q4 was $78.8 million (including >$25 million in one-time Lugano investigation/restatement costs) and full-year GAAP net loss was $293.7 million (including ~ $60 million in investigation and restatement-related expenses).
Read all updates
Q4-2025 Updates
Positive
Negative
Subsidiary Adjusted EBITDA Growth (Excluding Lugano)
Subsidiary adjusted EBITDA was $345.8 million, up 8.8% year-over-year excluding Lugano, driven by consumer strength and operational leverage.
Read all positive updates
Company Guidance
CODI guided to subsidiary adjusted EBITDA of $345 million to $395 million for 2026 (consumer $220–$260M; industrial $125–$135M), with assumed CapEx of $30–$40M and cash management fees of $25–$30M; management reiterated a free cash flow target of $50–$100M to support deleveraging, noted year‑end cash of $68M and ~$96M available on the revolver, and cited an $11M+ Altor sale‑leaseback used to pay down debt. For context, 2025 subsidiary adjusted EBITDA excluding Lugano was $345.8M (up 8.8%; consumer +13.8%, industrial +1.1%), 2025 CapEx was $44.3M (down $12M), GAAP Q4 revenue was $468.6M (‑5.1% YoY) and FY revenue $1.9B (+4.8%), FY GAAP net loss was $293.7M (including ~ $60M restatement/investigation charges), year‑end covenant leverage was ~5.47x, and the company targets a longer‑term leverage range of 3.0–3.5x (near‑term around ~4.0x with asset sales; organically nearer ~4.5x).Compass Diversified Holdings Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
22
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.87B | 1.79B | 1.69B | 1.76B | 1.72B |
| Gross Profit | 721.24M | 750.42M | 674.72M | 649.43M | 661.58M |
| EBITDA | 16.16M | -69.49M | -73.03M | 81.59M | 193.13M |
| Net Income | -229.32M | -208.86M | 108.65M | -59.22M | 114.55M |
Balance Sheet | |||||
| Total Assets | 3.04B | 3.30B | 3.33B | 3.49B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 68.02M | 59.66M | 446.62M | 52.67M | 160.73M |
| Total Debt | 1.88B | 3.53B | 3.33B | 1.83B | 1.28B |
| Total Liabilities | 2.47B | 2.77B | 2.47B | 2.56B | 1.86B |
| Stockholders Equity | 442.02M | 678.62M | 929.66M | 877.58M | 1.11B |
Cash Flow | |||||
| Free Cash Flow | -51.15M | -124.34M | 22.30M | -106.83M | 94.17M |
| Operating Cash Flow | -6.83M | -67.64M | 78.08M | -46.65M | 134.05M |
| Investing Cash Flow | -48.03M | -422.45M | 570.50M | -626.72M | -317.50M |
| Financing Cash Flow | 60.50M | 100.61M | -260.16M | 575.24M | 273.21M |
Compass Diversified Holdings Technical Analysis
Positive
8.59
Price Trends
6.76
Positive
6.17
Positive
6.54
Positive
Market Momentum
0.34
Negative
72.74
Negative
93.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODI, the sentiment is Positive. The current price of 8.59 is above the 20-day moving average (MA) of 6.57, above the 50-day MA of 6.76, and above the 200-day MA of 6.54, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 72.74 is Negative, neither overbought nor oversold. The STOCH value of 93.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CODI.
Compass Diversified Holdings Risk Analysis
Compass Diversified Holdings disclosed 50 risk factors in its most recent earnings report. Compass Diversified Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Compass Diversified Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.38B | 6.33 | 27.21% | 8.97% | 2.00% | ― | |
68 Neutral | $870.17M | 8.56 | 23.42% | 10.18% | -11.13% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $789.98M | 4.71 | 4.65% | 3.87% | -16.60% | 58.86% | |
56 Neutral | $646.28M | -1.57 | -40.36% | 20.53% | -15.85% | -59.42% | |
52 Neutral | $71.77M | -1.86 | -25.53% | ― | -9.85% | -11.65% | |
52 Neutral | $595.54M | -1.54 | -13.99% | 1.90% | 32.39% | -19.35% |
* Industrials Sector Average
CODI
Compass Diversified Holdings
8.59
-7.64
-47.07%
CRESY
Cresud Sociedad
12.58
3.39
36.95%
IRS
Irsa Inversiones Y Representaciones SA
16.65
5.92
55.20%
MATW
Matthews International
25.38
6.33
33.26%
NNBR
NN
1.43
-0.57
-28.50%
FIP
FTAI Infrastructure Incorporation
5.04
1.44
39.96%
Compass Diversified Holdings Corporate Events
Dividends
Compass Diversified Declares Q1 2026 Preferred Cash Distributions
Positive
Apr 1, 2026
On April 1, 2026, Compass Diversified’s board declared first‑quarter 2026 cash distributions on all three of its preferred share series, continuing its practice of returning capital to income‑focused investors. For the period fro...
Business Operations and StrategyM&A Transactions
Compass Diversified to Sell Sterno Food Service Business
Positive
Mar 30, 2026
On March 28, 2026, Compass Diversified entered into a definitive agreement to sell the food service business of its majority-owned subsidiary SternoCandleLamp Holdings for an enterprise value of $292.5 million to Archer Foodservice Partners, a Wyn...
Business Operations and StrategyExecutive/Board Changes
Compass Diversified Expands Board With Two New Directors
Positive
Mar 3, 2026
Compass Diversified Holdings, an owner of middle-market branded businesses, reported board changes that took effect around the turn of March 2026, as it continues to use its permanent capital model to support subsidiary growth and long-term value ...
Business Operations and StrategyRegulatory Filings and Compliance
Compass Diversified Updates Management Services Agreement, Enhancing Governance
Positive
Feb 24, 2026
On February 23, 2026, Compass Group Diversified Holdings LLC and its external manager, Compass Group Management LLC, entered into an Eighth Amended and Restated Management Services Agreement, revising key terms of their management arrangement. The...
Regulatory Filings and ComplianceShareholder Meetings
Compass Diversified Schedules 2026 Annual Shareholders Meeting
Neutral
Jan 15, 2026
The Board of Directors of Compass Diversified Holdings has scheduled the company’s 2026 Annual Meeting of Shareholders for May 21, 2026, after it was unable to hold an annual meeting in 2025. The company set specific deadlines in early 2026 ...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Compass Diversified Flagged by NYSE for Governance Noncompliance
Negative
Jan 6, 2026
On January 2, 2026, Compass Diversified Holdings was notified by the New York Stock Exchange that it was out of compliance with NYSE corporate governance listing standards because it failed to hold an annual shareholder meeting during its 2025 fis...
Dividends
Compass Diversified Declares Q4 2025 Preferred Share Distributions
Positive
Jan 5, 2026
On January 5, 2026, Compass Diversified announced that its board declared fourth-quarter 2025 cash distributions on all three of its preferred share series, reflecting the company’s continued practice of returning capital to preferred shareh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.