Compass Diversified Holdings (CODI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Compass Diversified Holdings

Why is Compass Diversified Holdings ?

Healthy long term growth as Operating profit has grown by an annual rate 20.57%

With a fall in Net Sales of -5.82%, the company declared Very Negative results in Dec 24

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at USD -67.64 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 5.76 times
INTEREST(Q) Highest at USD 30.34 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -77.53%, its profits have fallen by -713.4%

Below par performance in long term as well as near term

Along with generating -77.53% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Compass Diversified Holdings for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Compass Diversified Holdings

-71.6%

-0.87

87.47%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.94%

EBIT Growth (5y)

-231.34%

EBIT to Interest (avg)

1.99

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

53.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

83.56%

ROCE (avg)

6.33%

ROE (avg)

0.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.88

EV to EBIT

-13.26

EV to EBITDA

-42.24

EV to Capital Employed

0.98

EV to Sales

1.63

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.35%

ROE (Latest)

-63.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(HY)

Higher at USD -95.48 MM

RAW MATERIAL COST(Y)

Fallen by -3.15% (YoY

-20What is not working for the Company

ROCE(HY)

Lowest at -41.05%

DEBT-EQUITY RATIO (HY)

Highest at 432.24 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.35 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.84 times

DIVIDEND PER SHARE(HY)

Lowest at USD 4.84

INTEREST(Q)

Highest at USD 67.63 MM

NET PROFIT(Q)

At USD -75.39 MM has Fallen at -28.29%

Here's what is working for Compass Diversified Holdings

Raw Material Cost

Fallen by -3.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Compass Diversified Holdings

Interest

At USD 67.63 MM has Grown at 91.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 67.63 MM

in the last five periods and Increased by 91.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD -75.39 MM has Fallen at -28.29%

over average net sales of the previous four periods of USD -58.77 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 432.24 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.35 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at USD 4.84

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)