Compass (COMP) AI Stock Analysis

• Market Cap: $6.12B
• Dividend Yield: N/A
• Average Volume (3M): 12.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 24.27%
• EPS Growth: 73.11%
• Country: US
• Employees: 2,566
• Sector: Real Estate
• Sector Strength: 53
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 552,113,460
• 10 Day Avg. Volume: 10,742,536
• 30 Day Avg. Volume: 12,432,563
• PEG Ratio: 0.35
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 27.73
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 93.28
• 1Y Price Target: $11.25
• Price Target Upside: 3.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.09
• Revenue Forecast (FY): $6.91B

• Rating: 61 Neutral
• Price Target: $11.00 ▲(1.10% Upside)

Compass's overall stock score is driven by strong technical momentum and positive corporate events, including a significant merger and credit agreement. However, the score is tempered by ongoing profitability challenges and a negative P/E ratio, indicating valuation concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, supporting long-term financial health.

Agent Recruitment

Successful agent recruitment enhances service capacity and market presence, contributing to sustained competitive advantage.

Merger with Anywhere

The merger is expected to diversify revenue streams and achieve operational synergies, strengthening market position.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder reinvestment and growth, posing risks to long-term financial stability.

Increasing Operating Expenses

Rising operating expenses can pressure margins and profitability, affecting the company's ability to sustain growth.

Legal Expenses

Continued legal expenses may drain resources and distract management, impacting operational efficiency and profitability.

Compass Business Overview & Revenue Model

Company Description

Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality, as well as brokerage and adjacent services in the real estate industry. The company offers mobile apps that allow agents to manage their business anywhere as well as designs consumer-grade interfaces, an automated workflows for agent-client interactions. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was founded in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Compass generates revenue primarily through commissions earned on real estate transactions facilitated by its agents. Typically, the company takes a percentage of the commission paid by sellers to agents, which can vary based on the market and specific agreements. Additionally, Compass provides premium tools and services to its agents, which may include marketing support, technology platforms, and training resources, for which agents may pay fees or commission splits. The company also engages in strategic partnerships with various tech firms and real estate platforms to enhance its service offerings and expand its market reach, contributing further to its revenue streams.

Compass Financial Statement Overview

Summary

Compass shows moderate revenue growth and improved cash flow generation, but profitability remains a concern with negative margins. The balance sheet shows improved leverage, yet profitability metrics like ROE are negative. Overall, the company is on a path of gradual improvement but faces challenges in achieving consistent profitability.

Income Statement

Compass shows a modest revenue growth of 5.6% in the TTM, indicating a positive trend. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 16.6%, suggesting challenges in cost management.

Balance Sheet

The debt-to-equity ratio has improved to 0.65 in the TTM, reflecting better leverage management compared to previous years. However, the negative return on equity indicates ongoing profitability issues. The equity ratio is not provided, but the overall balance sheet shows moderate stability.

Cash Flow

The company has achieved a significant free cash flow growth of 27.8% in the TTM, which is a positive sign. The operating cash flow to net income ratio is healthy at 0.35, and the free cash flow to net income ratio is strong at 0.90, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.64B	5.63B	4.88B	6.02B	6.42B	3.72B
Gross Profit	1.07B	994.50M	878.00M	1.08B	1.11B	663.90M
EBITDA	52.10M	-65.60M	-216.40M	-500.30M	-428.50M	-220.10M
Net Income	-56.40M	-154.40M	-321.30M	-601.50M	-494.10M	-270.20M
Balance Sheet
Total Assets	1.55B	1.18B	1.16B	1.53B	1.80B	1.37B
Cash, Cash Equivalents and Short-Term Investments	170.30M	223.80M	166.90M	361.90M	618.30M	440.10M
Total Debt	481.00M	497.60M	533.90M	763.00M	580.70M	512.40M
Total Liabilities	775.10M	765.60M	728.30M	1.01B	953.00M	2.23B
Stockholders Equity	773.30M	409.40M	428.70M	517.10M	843.80M	-862.90M
Cash Flow
Free Cash Flow	187.80M	105.80M	-37.10M	-362.40M	-78.70M	-101.40M
Operating Cash Flow	201.90M	121.50M	-25.90M	-292.30M	-28.60M	-58.10M
Investing Cash Flow	-195.60M	-36.60M	-11.70M	-100.10M	-192.50M	-13.40M
Financing Cash Flow	-47.20M	-28.00M	-157.40M	136.00M	399.30M	19.90M

Compass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.88
• 50DMA: Positive
• 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 COMP, the sentiment is Positive. The current price of 10.88 is above the 20-day moving average (MA) of 10.40, above the 50-day MA of 9.00, and above the 200-day MA of 8.01, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.95 is Neutral, 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
YOU	77 Outperform	$5.22B	20.57	130.93%	1.96%	17.83%	118.70%
QTWO	75 Outperform	$4.56B	152.44	5.68%	―	13.93%	―
BILL	74 Outperform	$5.43B	-195.49	0.30%	―	11.63%	50.72%
FROG	73 Outperform	$7.73B	-91.62	-9.88%	―	22.69%	-32.47%
ZETA	67 Neutral	$4.36B	-149.78	-3.92%	―	35.87%	85.20%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
COMP	61 Neutral	$6.12B	-93.27	-9.39%	―	24.27%	73.11%

Compass Corporate Events

Compass Secures $250M Revolving Credit Agreement

On November 17, 2025, Compass, Inc. entered into a Revolving Credit and Guaranty Agreement with Morgan Stanley Senior Funding, Inc. and other lenders, securing an initial $250 million revolving credit facility. This facility could increase to $500 million if Compass’s merger with Anywhere Real Estate Inc. is completed. The agreement includes a letter of credit sublimit and is secured by a first priority interest in Compass’s assets. The credit facility has a maturity date of November 17, 2030, with potential earlier maturity linked to Anywhere’s financial obligations. The agreement outlines various financial covenants and conditions, including maintaining certain liquidity and revenue levels before the merger and adjusting leverage ratios post-merger.

Compass Announces $10 Billion Merger with Anywhere

On September 22, 2025, Compass, Inc. announced a merger with Anywhere Real Estate Inc. in an all-stock transaction valued at approximately $10 billion, including debt. This merger is set to create a premier real estate platform by combining Compass’ technology and marketing expertise with Anywhere’s established brands and global reach. The transaction is expected to diversify Compass’ revenue streams and achieve significant operational synergies, enhancing the company’s financial profile and market positioning. The merger is anticipated to close in the second half of 2026, pending shareholder and regulatory approvals.

Compass Appoints Ethan Glass as Chief Legal Officer

Compass has announced a significant leadership change with the appointment of Mr. Ethan Glass as Chief Legal Officer and Corporate Secretary, effective September 8, 2025. This transition follows the announcement on September 9, 2025, that Brad Serwin will step down as General Counsel by the end of the year to start his private practice. Mr. Serwin will remain with the company until December 31, 2025, to ensure a smooth transition and will continue to provide consulting services until March 16, 2026. His departure package includes extended stock option exercise periods, additional health benefits, and continued equity award vesting. The company has also waived repayment obligations under his bonus agreement, acknowledging his contributions over the past five years.