Compass Diversified Holdings (CODI) AI Stock Analysis

• Market Cap: $519.88M
• Dividend Yield: 14.47%
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 6.77%
• EPS Growth: 9.95%
• Country: US
• Employees: 3,340
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 75,235,970
• 10 Day Avg. Volume: 1,647,184
• 30 Day Avg. Volume: 1,501,335
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.41
• Revenue Forecast (FY): $1.99B

• Rating: 57 Neutral
• Price Target: $6.50 ▼(-5.93% Downside)

The overall stock score of 57 reflects financial stability concerns due to high leverage and negative cash flows, despite strong gross profitability. Technical indicators suggest a bearish trend, and the valuation is impacted by a negative P/E ratio, despite a high dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability and competitive positioning.

Diverse Portfolio

A diverse portfolio across sectors reduces risk and enhances stability, allowing CODI to capitalize on various market opportunities and mitigate sector-specific downturns.

High Dividend Yield

A high dividend yield can attract income-focused investors, providing a stable return and demonstrating the company's commitment to returning capital to shareholders.

Negative Factors

High Leverage

High leverage increases financial risk, especially in volatile markets, potentially impacting the company's ability to invest in growth and withstand economic downturns.

Negative Cash Flows

Negative cash flows highlight challenges in sustaining operations and funding growth, which could pressure financial stability and limit strategic flexibility.

Low Return on Equity

Low ROE suggests inefficiencies in generating returns from shareholders' equity, potentially indicating issues with profitability and capital allocation.

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, manufacturing, distribution, consumer products, business services sector, safety & security, electronic components, food, foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $100 million and $800 million in companies with an EBITDA between $15 million to $80 million. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have majority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Diversified was founded in 2005 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.

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

Compass Diversified Holdings shows strength in gross profitability and a balanced equity structure, but faces challenges with high leverage, low ROE, and negative cash flows. While revenue growth is present, the company's ability to improve net income and cash generation remains a key area for improvement. The firm's financial health is stable but requires attention to leverage and cash flow management to enhance shareholder value.

Income Statement

The company shows a strong gross profit margin at 45.5% for 2024, indicating solid profitability from core operations. However, the net profit margin is low at 1.9%, reflecting challenges in translating revenue into net income. Revenue growth from 2023 to 2024 is modest at 6.8%, marked by fluctuating EBIT margins over recent years, currently at 10.5%.

Balance Sheet

With a debt-to-equity ratio of 1.37, the company has relatively high leverage, which could pose risks in volatile market conditions. The return on equity (ROE) is low at 3.3%, indicating limited profitability for shareholders. The equity ratio is reasonably healthy at 32.0%, suggesting a balanced capital structure.

Cash Flow

The company faces challenges with negative free cash flow of -$129.33 million in 2024, a decrease from positive figures in 2023. Operating cash flow to net income ratio is negative, indicating difficulties in converting net income into cash flow. These factors highlight concerns over sustainability of cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	1.97B	2.01B	1.72B	1.45B
Gross Profit	1.00B	833.00M	783.05M	661.58M	539.67M
EBITDA	347.71M	311.38M	280.22M	240.10M	185.06M
Net Income	12.81M	246.29M	36.39M	114.55M	22.78M
Balance Sheet
Total Assets	4.05B	3.82B	3.85B	3.14B	2.60B
Cash, Cash Equivalents and Short-Term Investments	59.73M	450.48M	56.60M	160.73M	60.02M
Total Debt	1.77B	1.87B	2.00B	1.42B	988.87M
Total Liabilities	2.49B	2.30B	2.49B	1.86B	1.38B
Stockholders Equity	1.30B	1.33B	1.14B	1.11B	1.10B
Cash Flow
Free Cash Flow	-124.34M	22.30M	-92.56M	94.17M	117.86M
Operating Cash Flow	-67.64M	78.08M	-28.29M	134.05M	148.63M
Investing Cash Flow	-422.45M	570.50M	-626.73M	-317.50M	-700.83M
Financing Cash Flow	100.61M	-260.16M	556.88M	273.21M	521.73M

Compass Diversified Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.91 is above the 20-day moving average (MA) of 6.02, above the 50-day MA of 6.77, and below the 200-day MA of 10.28, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 95.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CODI.

Compass Diversified Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRS	79 Outperform	$1.26B	2.77	32.84%	6.38%	2.00%	―
CRESY	68 Neutral	$769.70M	4.24	20.18%	10.01%	-11.13%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CODI	57 Neutral	$519.88M	―	―	14.47%	6.77%	9.95%
MATW	54 Neutral	$767.43M	-31.16	-5.33%	4.06%	-16.60%	58.86%
FIP	48 Neutral	$475.64M	-1.69	-13.99%	2.20%	32.39%	-19.35%
NNBR	45 Neutral	$62.74M	―	-24.06%	―	-9.85%	-11.65%

Compass Diversified Holdings Corporate Events

Compass Diversified Holdings Delays Quarterly Report

Compass Diversified Holdings has announced a delay in filing its Form 10-Q (Quarter Report) for the period ending June 30, 2025. The delay is primarily due to an ongoing investigation by the company’s Audit Committee and the need to restate financial statements for previous years and quarters. The company does not expect to meet the five-day extension deadline but is working diligently to file the report as soon as possible. The delay may lead to significant changes in financial results, with forward-looking statements indicating potential impacts from internal control failures and restatement reviews. The notification was signed by Stephen Keller, Chief Financial Officer, emphasizing the company’s commitment to resolving the issues promptly.

The most recent analyst rating on (CODI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

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.

The most recent analyst rating on (CODI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

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.

The most recent analyst rating on (CODI) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

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.

The most recent analyst rating on (CODI) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

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.

The most recent analyst rating on (CODI) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

Compass Diversified Amends Senior Notes Agreement

Compass Diversified Holdings LLC, a company involved in managing a diverse portfolio of businesses, entered into a Forbearance Agreement on August 29, 2025, with certain note holders to amend terms related to its senior notes due in 2029 and 2032. On September 9, 2025, the company executed supplemental indentures to amend the notes, introducing special payments in kind to note holders, which could impact the company’s financial obligations and stakeholder interests.

The most recent analyst rating on (CODI) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

Compass Diversified Holdings Delays Quarterly Report Filing

Compass Diversified Holdings (CODI) announced a delay in filing its quarterly report for the quarter ended March 31, 2025, due to concerns about financing, accounting, and inventory practices at its subsidiary, Lugano Holding, Inc. The company has also disclosed non-reliance on its financial statements for 2022, 2023, and 2024. To address these issues, CODI entered into a Forbearance Agreement with note holders to provide time for financial restatements and to prevent defaults under its senior notes. The agreement is expected to allow CODI to complete the restatement of its financial statements, but the company warns of potential adverse effects on its business if these efforts are unsuccessful.

The most recent analyst rating on (CODI) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.