Compass Diversified Holdings (CODI) AI Stock Analysis

• Market Cap: $360.38M
• Dividend Yield: 20.88%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -15.85%
• EPS Growth: -59.42%
• Country: US
• Employees: 3,340
• Sector: N/A
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 75,235,970
• 10 Day Avg. Volume: 1,319,436
• 30 Day Avg. Volume: 1,368,222
• PEG Ratio: -1.50
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -14.01
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $6.00 ▼(-13.17% Downside)

Compass Diversified Holdings faces significant challenges, primarily due to financial and operational issues highlighted by the bankruptcy of a subsidiary and high leverage. While the company maintains a high dividend yield, its negative P/E ratio and bearish technical indicators reflect underlying risks. The stock's score is primarily impacted by financial performance and corporate events, with valuation and technical analysis also contributing to the cautious outlook.

Compass Diversified Holdings Business Overview & Revenue Model

Company Description

Compass Diversified Holdings (CODI) is a publicly traded investment firm based in the United States that specializes in acquiring and managing a diversified portfolio of lower middle-market companies across various sectors. CODI primarily focuses on sectors such as consumer products, industrials, and niche manufacturing, leveraging its operational expertise to drive growth and enhance the value of its portfolio companies. The firm seeks to create long-term value through strategic acquisitions and operational improvements, positioning itself as a key player in the private equity landscape.

How the Company Makes Money

Compass Diversified Holdings generates revenue primarily through the management and performance of its portfolio companies. The company earns income from various sources, including dividends from its subsidiaries, capital gains from the sale of investments, and management fees from its funds. CODI's revenue model is heavily reliant on the profitability of its underlying businesses, which span multiple industries such as outdoor products, specialty consumer goods, and industrial manufacturing. The firm often engages in operational improvements and strategic initiatives within its portfolio companies to enhance their profitability. Additionally, CODI benefits from its ability to leverage relationships with financial institutions and strategic partners to facilitate acquisitions and drive growth, contributing significantly to its overall earnings.

Compass Diversified Holdings Financial Statement Overview

Summary

Income Statement

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Cash Flow

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
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Compass Diversified Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODI, the sentiment is Negative. The current price of 6.91 is above the 20-day moving average (MA) of 6.01, above the 50-day MA of 6.46, and below the 200-day MA of 9.11, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 34.84 is Neutral, neither overbought nor oversold. The STOCH value of 6.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CODI.

Compass Diversified Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
CRESY	77 Outperform	$812.22M	4.06	20.18%	10.13%	-11.13%	―
IRS	77 Outperform	$1.27B	2.86	32.84%	8.97%	2.00%	―
MATW	56 Neutral	$800.69M	-32.51	-5.33%	3.87%	-16.60%	58.86%
CODI	53 Neutral	$360.38M	-1.27	―	20.88%	-15.85%	-59.42%
FIP	48 Neutral	$546.58M	-1.94	-13.99%	1.91%	32.39%	-19.35%
NNBR	45 Neutral	$59.73M	-0.97	-24.06%	―	-9.85%	-11.65%

Compass Diversified Holdings Corporate Events

Compass Diversified Secures Waiver for Financial Statement Delivery

On December 9, 2025, Compass Diversified Holdings announced that its lenders agreed to waive the requirement to deliver restated financial statements by December 5, 2025, as per the Fifth Forbearance Agreement. This decision, following the company’s filing of an amendment to its annual report, ensures that the Fifth Forbearance Agreement remains in effect until December 19, 2025, providing stability and compliance with the Credit Agreement terms.

Compass Diversified Holdings’ Subsidiary Files for Bankruptcy

Compass Diversified Holdings, a company involved in various industries through its subsidiaries, faced significant financial and operational challenges due to irregularities at its subsidiary, Lugano Holding, Inc. These issues led to a series of forbearance agreements with lenders to delay exercising rights related to defaults under a credit agreement, allowing the company time to address financial restatements and operational concerns. The situation culminated in Lugano filing for Chapter 11 bankruptcy on November 17, 2025, highlighting the potential adverse effects on Compass Diversified Holdings’ business and financial condition.

Compass Diversified Secures NYSE Listing Extension

On November 18, 2025, Compass Diversified Holdings (CODI) secured an extension from the New York Stock Exchange to continue listing and trading its securities until January 20, 2026. This extension allows CODI additional time to file restated financial reports for fiscal years 2022 through 2024 and quarterly reports for 2025 with the SEC. The extension is subject to ongoing reassessment by the NYSE. The announcement highlights the company’s ongoing challenges related to financial reporting and internal control issues, which are under investigation by the Audit Committee. The outcome of these investigations could significantly impact CODI’s financial statements and its compliance with NYSE listing requirements.

Compass Diversified Supports Lugano’s Bankruptcy Process

On November 17, 2025, Lugano Holding, Inc., a subsidiary of Compass Diversified Holdings LLC, filed for Chapter 11 bankruptcy protection in Delaware. Compass Diversified, as Lugano’s senior secured lender, will provide debtor-in-possession financing to support the bankruptcy process, which aims to maximize value for Lugano’s stakeholders. This development will result in Lugano no longer being consolidated with Compass Diversified’s financial results starting in the fourth quarter of 2025, while the company continues to work on financial restatements and maintain strong performance across its other subsidiaries.

Compass Diversified Enters Fourth Forbearance Agreement

Compass Diversified Holdings, a company involved in diverse business operations, has faced significant financial and operational challenges due to irregularities at its subsidiary, Lugano Holding, Inc. These issues have led to delays in financial reporting and potential defaults under its credit agreements. To address these challenges, Compass Diversified Holdings has entered into multiple forbearance agreements with its lenders, most recently the Fourth Forbearance Agreement on November 7, 2025, which provides temporary relief from exercising rights related to defaults. This agreement allows the company to continue discussions for waivers and relief while working on restating its financial statements. However, failure to resolve these issues could have a material adverse effect on the company’s business and financial condition.

Compass Diversified Extends Deadline Amid Financial Probe

On October 30, 2025, Compass Diversified Holdings LLC announced that its senior secured lender group extended the deadline to November 10, 2025, for the company to publish its restated financial results for the fiscal years ended December 31, 2022, 2023, and 2024. This extension is part of an ongoing investigation into financial irregularities at its Lugano Holding Inc. subsidiary, which has not affected its other subsidiaries. The company is actively working to complete the restatement process and resolve the sophisticated financial fraud perpetrated by Lugano’s founder and former CEO, with a focus on maximizing stakeholder value and maintaining strong performance across its businesses.

Compass Diversified’s Third Forbearance Agreement Announced

Compass Diversified Holdings announced a series of forbearance agreements due to financial irregularities discovered in its subsidiary, Lugano Holding, Inc., impacting its financial statements for 2024. The company has entered into a Third Forbearance Agreement with its lenders to delay exercising rights related to these defaults until November 24, 2025, while it works on restating its financials and negotiating waivers, which, if unsuccessful, could adversely affect its business and financial condition.

Compass Diversified Declares Quarterly Cash Distributions

On October 2, 2025, Compass Diversified Holdings announced that its Board of Directors declared quarterly cash distributions for its Series A, B, and C Preferred Shares. These distributions, covering the period from July 30, 2025, to October 30, 2025, are payable on October 30, 2025, to shareholders of record as of October 15, 2025. The announcement signifies the company’s ongoing commitment to providing returns to its shareholders and may impact its financial positioning and stakeholder confidence.