Compass (COMP) AI Stock Analysis

• Market Cap: $3.85B
• Dividend Yield: N/A
• Average Volume (3M): 7.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 19.05%
• EPS Growth: 78.91%
• Country: US
• Employees: 2,566
• Sector: Real Estate
• Sector Strength: 61
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 521,246,340
• 10 Day Avg. Volume: 6,639,822
• 30 Day Avg. Volume: 7,163,560
• PEG Ratio: -0.85
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.44
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: -12.51
• 1Y Price Target: $9.29
• Price Target Upside: 30.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $7.00 ▼(-1.82%Downside)

The overall stock score of 55 reflects a balance of strong revenue growth and operational improvements against ongoing profitability challenges and valuation concerns. Financial performance is the most significant factor, with the company on a cautious recovery path. Technical analysis provides a cautiously optimistic outlook, while valuation concerns weigh on the stock. Earnings call highlights and corporate events offer additional positive signals, but the stock remains a speculative investment.

Positive Factors

Financial Performance

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.

Market Share

COMP continues to believe they can reach 30% market share in their top 30 markets, driven by M&A and organic growth.

Revenue Growth

Forecast >20% revenue growth helped by M&A and continued share gains.

Negative Factors

Housing Market Forecast

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

Price Target Adjustment

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

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

Compass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 7.13 is above the 20-day moving average (MA) of 6.60, above the 50-day MA of 6.32, and above the 200-day MA of 7.00, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 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
PYCR	74 Outperform	$4.09B	―	-1.66%	―	15.72%	74.59%
LYFT	72 Outperform	$6.20B	108.47	8.56%	―	27.32%	―
Sector *	65 Neutral	$2.04B	18.38	2.45%	5.21%	-0.66%	2.51%
ASAN	64 Neutral	$3.52B	―	-83.36%	―	9.84%	13.74%
ALIT	62 Neutral	$3.08B	―	-0.82%	2.11%	-26.04%	85.84%
COMP	55 Neutral	$3.85B	―	-14.96%	―	19.05%	78.91%
INTA	50 Neutral	$3.36B	―	-4.16%	―	17.70%	61.98%

Compass Corporate Events

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.