Compass (COMP) AI Stock Analysis

• Market Cap: $4.70B
• Dividend Yield: N/A
• Average Volume (3M): 7.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 21.23%
• EPS Growth: 78.54%
• Country: US
• Employees: 2,566
• Sector: Real Estate
• Sector Strength: 47
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 525,865,400
• 10 Day Avg. Volume: 8,184,673
• 30 Day Avg. Volume: 7,393,151
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: 81.61
• 1Y Price Target: $9.19
• Price Target Upside: 4.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $8.50 ▼(-3.19% Downside)

Compass's overall score is bolstered by strong earnings call results and positive corporate events, reflecting operational improvements and strategic initiatives. However, profitability challenges and high valuation risks limit the score. Technical indicators suggest positive momentum but caution against potential overbought conditions.

Positive Factors

Agent Growth

Compass Inc achieved record agent growth this quarter, contributing to improved value drivers.

Earnings

Analyst reiterates a Buy rating on Compass Inc shares following strong quarterly results.

Negative Factors

Market Forecast

Trimmed housing market forecast now expecting a flat market in '25E vs +5% growth prior.

Operational Estimates

COMP provided preliminary results above their previous outlook, with revenue better than +8% at the midpoint, and adj. EBITDA up by 230% at the midpoint.

Price Target

Lowering PT to $11 following 1Q results, pushing '25E adj. EBITDA estimates lower by -15%.

Compass Business Overview & Revenue Model

Company Description

Compass, Inc. (COMP) is a technology-driven real estate brokerage firm based in the United States. The company specializes in leveraging advanced technology solutions to streamline the process of buying, selling, and renting real estate. Compass provides a wide range of services for real estate transactions, including market analysis, property marketing, and transaction management, supported by a robust digital platform designed to enhance the efficiency and effectiveness of real estate agents and clients alike.

How the Company Makes Money

Compass makes money primarily through commission fees earned from real estate transactions. As a brokerage, the company employs or partners with real estate agents who facilitate property sales and rentals. Upon the successful completion of a transaction, Compass receives a percentage of the total sale or rental price as a commission. This commission is typically shared between Compass and the agent involved, based on pre-agreed terms. Additionally, Compass may generate revenue through ancillary services, such as mortgage and title services, which complement their core brokerage operations. The company's investment in technology aims to enhance agent productivity and attract top-performing agents, thereby increasing transaction volume and associated revenue. Significant partnerships with real estate professionals and technology providers further bolster Compass's market presence and revenue generation capabilities.

Compass Financial Statement Overview

Summary

Compass demonstrates a mixed financial performance across its statements. The company is experiencing robust revenue growth, signaling market traction, yet continues to struggle with profitability. The balance sheet reflects a moderate leverage profile and a stable equity position. Cash flow improvements highlight potential for operational recovery, though challenges remain in achieving sustainable profitability. Overall, the financial health of the company is on a cautious recovery path, with key areas requiring strategic management.

Income Statement

The company exhibits a mixed income statement profile with a notable revenue growth of 21.43% from 2023 to TTM (Trailing-Twelve-Months). However, the company continues to face profitability challenges, as reflected by negative net and EBIT margins, indicating ongoing operational inefficiencies. The improvement in EBITDA margin to 0.27% in TTM suggests some progress towards operational recovery.

Balance Sheet

The balance sheet reveals a moderate level of leverage with a debt-to-equity ratio improving to 0.76 in TTM. The equity ratio stands at a healthy 41.16%, indicating a balanced capital structure. However, the return on equity remains negative due to persistent net losses. The company has managed to maintain a stable asset base, with a slight increase in stockholders' equity over the period.

Cash Flow

Cash flow analysis shows a positive trajectory with a significant improvement in free cash flow, growing by 12.85% in TTM. The operating cash flow to net income ratio is favorable at 1.88, indicating strong cash generation relative to reported losses. The free cash flow to net income ratio of -1.65 reflects ongoing challenges in converting profits into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.29B	5.63B	4.88B	6.02B	6.42B	3.72B
Gross Profit	1.05B	994.50M	553.00M	1.08B	1.11B	663.90M
EBITDA	50.10M	-65.60M	-216.40M	-500.30M	-428.50M	-220.10M
Net Income	-53.50M	-154.40M	-321.30M	-589.30M	-492.80M	-270.20M
Balance Sheet
Total Assets	1.60B	1.18B	1.16B	1.53B	1.80B	1.37B
Cash, Cash Equivalents and Short-Term Investments	177.30M	223.80M	166.90M	361.90M	618.30M	440.10M
Total Debt	465.10M	497.60M	533.90M	763.00M	580.70M	512.40M
Total Liabilities	870.70M	765.60M	728.30M	1.01B	953.00M	741.30M
Stockholders Equity	719.90M	409.40M	428.70M	517.10M	843.80M	623.80M
Cash Flow
Free Cash Flow	147.00M	105.80M	-37.10M	-361.80M	-78.70M	-101.40M
Operating Cash Flow	163.80M	121.50M	-25.90M	-291.70M	-28.60M	-58.10M
Investing Cash Flow	-192.00M	-36.60M	-11.70M	-100.10M	-192.50M	-13.40M
Financing Cash Flow	19.70M	-28.00M	-157.40M	135.40M	399.30M	19.90M

Compass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COMP, the sentiment is Positive. The current price of 8.78 is above the 20-day moving average (MA) of 7.89, above the 50-day MA of 6.97, and above the 200-day MA of 7.18, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 76.38 is Negative, neither overbought nor oversold. The STOCH value of 88.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COMP.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYFT	68 Neutral	$5.94B	72.27	14.07%	―	19.94%	―
INTA	65 Neutral	$3.36B	―	-3.95%	―	17.09%	48.66%
COMP	64 Neutral	$4.70B	―	-9.57%	―	21.23%	78.54%
Sector *	63 Neutral	$6.83B	13.32	-1.02%	7.20%	3.66%	-22.87%
ASAN	61 Neutral	$3.24B	―	-83.36%	―	9.84%	13.74%
ALIT	47 Neutral	$1.97B	―	-29.09%	3.28%	-19.48%	-398.43%

Compass Corporate Events

Compass Announces CFO Transition Effective August 2025

Compass announced that its Chief Financial Officer, Kalani Reelitz, will resign effective August 22, 2025. Scott Wahlers, the current Chief Accounting Officer, will assume the role of Chief Financial Officer on the same date. Wahlers, who has been with Compass since 2018, has extensive experience in finance and accounting, having played a significant role in the company’s initial public offering and cost reduction initiatives. His previous experience includes 16 years at WebMD, where he held various finance-related positions.

The most recent analyst rating on (COMP) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Compass stock, see the COMP Stock Forecast page.

Compass Adopts Deferred Compensation Plan for Executives

On May 29, 2025, Compass, Inc. adopted a Deferred Compensation Plan allowing directors and selected executives to defer taxable income in compliance with tax regulations. At the annual meeting on May 22, 2025, stockholders elected three directors, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved the 2024 executive compensation, indicating strong shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (COMP) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Compass stock, see the COMP Stock Forecast page.