1.37%
-6.76%
4.47%
-9.77%
-4.78%
-14.47%
-9.47%
AI Spotlight on CODI
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.
Market Data
| Last Price | 21.52 |
| Change Percentage | 1.37% |
| Open | 21.5 |
| Previous Close | 21.23 |
| Market Cap ( Millions) | 1628 |
| Volume | 194932 |
| Year High | 25.07 |
| Year Low | 19.76 |
| M A 50 | 22.75 |
| M A 200 | 22.12 |
Financial Ratios
| FCF Yield | -6.33% |
| Dividend Yield | 4.65% |
| ROE | 10.55% |
| Debt / Equity | 143.59% |
| Net Debt / EBIDTA | 683.12% |
| Price To Book | 1.32 |
| Price Earnings Ratio | 12.26 |
| Price To FCF | -15.79 |
| Price To sales | 0.79 |
| EV / EBITDA | 13.36 |
News
- Jan -15 - Compass Diversified Holdings Announces Amendment of its Management Services Agreement
- Jan -14 - Compass Diversified: Undervalued With A Growing Diamond Subsidiary
- Jan -13 - 2 Preferred Stocks +7% Yield, Sleep Well At Night
- Jan -10 - Compass Diversified Holdings Announces Amendment of its Credit Agreement
- Jan -06 - Compass Diversified Holdings Announces Changes to its Board of Directors
- Dec -30 - Highlander Partners Acquires Juvenile Products Leader Ergobaby
- Dec -09 - Compass Diversified to Host Investor Day on January 16, 2025, in New York City
- Nov -29 - Compass Diversified Preferred: Well-Covered 8% Yield, Adjusted EBITDA Up 27% In 2024
- Nov -01 - Worried About A Recession? Income Solutions With Yields Up To 13%
- Oct -31 - Compass Diversified (CODI) Q3 2024 Earnings Call Transcript
- Oct -31 - Compared to Estimates, Compass Diversified Holdings (CODI) Q3 Earnings: A Look at Key Metrics
- Oct -30 - Compass Diversified Reports Third Quarter 2024 Financial Results
- Oct -16 - Compass Diversified Announces Third Quarter 2024 Earnings and Conference Call Information
- Oct -16 - Compass Diversified Announces $100 Million Share Repurchase Program
- Oct -09 - U.S. economy is more robust than what people are saying, Compass Diversified CEO says
- Oct -03 - Compass Diversified Declares Third Quarter 2024 Distributions on Common and Series A, B and C Preferred Shares
- Oct -02 - JADEX COMPLETES SALE OF LIFOAM TO ALTOR SOLUTIONS
- Sep -16 - Buy The Dip: High-Yield Stocks Getting Way Too Cheap
- Aug -26 - Compass Diversified Announces Stephen Keller as Chief Financial Officer
- Aug -19 - JADEX TO SELL LIFOAM TO ALTOR SOLUTIONS
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> 5.11
Expected Growth : 7.5 %
What the company do ?
5.11 from Compass Diversified is a leading provider of premium outdoor gear and apparel, offering high-quality products for tactical, outdoor, and recreational enthusiasts.
Why we expect these perspectives ?
Compass Diversified's 7.5% growth, driven by 5.11's strong brand recognition, increasing demand for outdoor gear, and strategic acquisitions. The company's diversified product portfolio, including firearms, camping equipment, and cutlery, also contributes to its growth. Additionally, 5.11's focus on innovation, quality, and customer loyalty has enabled it to maintain a strong market position and drive sales growth.
Segment n°2 -> Sterno
Expected Growth : 7.2 %
What the company do ?
Sterno, a subsidiary of Compass Diversified, is a leading manufacturer of portable food warming fuels and creative table lighting solutions.
Why we expect these perspectives ?
Sterno's 7.2% growth is driven by increasing demand for outdoor cooking and recreational products, expansion into e-commerce and online marketplaces, and strategic acquisitions. Additionally, the company's focus on innovation, quality, and customer service has led to market share gains and pricing power.
Segment n°3 -> Lugano
Expected Growth : 7.8 %
What the company do ?
Lugano is a leading designer and manufacturer of premium comfort footwear, acquired by Compass Diversified in 2010.
Why we expect these perspectives ?
Lugano's 7.8% growth is driven by increasing demand for premium outdoor furniture, expansion into new distribution channels, and strategic partnerships. Additionally, the company's focus on product innovation, quality, and customer service has led to strong brand loyalty and repeat business. Furthermore, Compass Diversified's operational expertise and resources have enabled Lugano to optimize its supply chain and improve margins.
Segment n°4 -> Altor Solutions
Expected Growth : 7.9 %
What the company do ?
Altor Solutions, a Compass Diversified company, provides security and surveillance systems integration services to various industries.
Why we expect these perspectives ?
Altor Solutions' 7.9% growth is driven by increasing demand for cybersecurity services, expansion into new markets, and strategic acquisitions. The company's expertise in threat detection and incident response, coupled with Compass Diversified's resources, has enabled Altor to capitalize on the growing need for robust cybersecurity solutions.
Segment n°5 -> Velocity Outdoor
Expected Growth : 8.1 %
What the company do ?
Velocity Outdoor is a leading designer and manufacturer of outdoor recreation products, including archery, camping, and hunting gear, acquired by Compass Diversified in 2012.
Why we expect these perspectives ?
Velocity Outdoor's 8.1% growth is driven by increasing demand for outdoor recreational products, strategic acquisitions, and expansion into new markets. The company's diversified portfolio of brands, including Crosman and Ravin, has enabled it to capitalize on trends in camping, hunting, and outdoor activities. Additionally, investments in e-commerce and digital marketing have enhanced customer engagement and driven sales growth.
Segment n°6 -> Arnold
Expected Growth : 7.6 %
What the company do ?
Arnold is a leading manufacturer of specialty tapes and adhesive-based products, acquired by Compass Diversified in 2015.
Why we expect these perspectives ?
Arnold's 7.6% growth is driven by increasing demand for outdoor recreation, strategic acquisitions, and expansion into adjacent markets. The company's diversified portfolio, including camping, water sports, and outdoor gear, benefits from rising consumer spending on experiences. Additionally, Arnold's focus on e-commerce and digital marketing enhances its online presence, further fueling growth.
Segment n°7 -> BOA
Expected Growth : 7.4 %
What the company do ?
BOA (Branded Operating Adjustment) from Compass Diversified is a unique approach to value creation, focusing on acquiring and operating middle-market businesses.
Why we expect these perspectives ?
BOA's 7.4% growth is driven by increasing demand for outdoor recreation, strategic acquisitions, and expansion into adjacent markets. Compass Diversified's diversified portfolio and operational expertise have enabled BOA to capitalize on trends in camping, hiking, and outdoor enthusiasts, resulting in sustained revenue growth.
Segment n°8 -> Ergobaby
Expected Growth : 7.7 %
What the company do ?
Ergobaby is a leading global baby carrier brand, acquired by Compass Diversified in 2019, offering a range of ergonomic and comfortable baby carriers for parents.
Why we expect these perspectives ?
Ergobaby's 7.7% growth is driven by increasing demand for baby carriers, expansion into new markets, and strategic product innovation. The brand's focus on comfort, ergonomics, and style resonates with parents seeking convenient and healthy babywearing solutions. Additionally, Compass Diversified's operational expertise and resources have enabled Ergobaby to optimize its supply chain and improve distribution, further fueling growth.
Segment n°9 -> PrimaLoft
Expected Growth : 7.3 %
What the company do ?
PrimaLoft is a leading developer of high-performance insulation and fabrics, acquired by Compass Diversified in 2015, providing innovative materials for outdoor and consumer products.
Why we expect these perspectives ?
PrimaLoft's 7.3% growth is driven by increasing demand for high-performance outdoor gear, strategic partnerships with key brands, and expansion into new markets such as athleisure and workwear. Additionally, the company's focus on sustainability and eco-friendly products resonates with environmentally conscious consumers, contributing to its growth momentum.
Compass Diversified Products
| Product Range | What is it ? |
|---|---|
| 5.11 Tactical | Manufacturer of tactical gear and apparel for law enforcement, first responders, and outdoor enthusiasts |
| BAUER | Manufacturer of hockey gear and equipment |
| Crosman | Manufacturer of airguns, ammunition, and accessories |
| Sterno | Manufacturer of portable food warming products and butane-powered appliances |
| Liberty Safe | Manufacturer of home and gun safes |
| Velocity Outdoor | Manufacturer of archery and outdoor gear |
Compass Diversified's Porter Forces
Threat Of Substitutes
The threat of substitutes for Compass Diversified is moderate due to the availability of alternative products and services in the market.
Bargaining Power Of Customers
The bargaining power of customers is low due to the diversified nature of Compass Diversified's business, making it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Compass Diversified's diversified business reduces its dependence on any one supplier.
Threat Of New Entrants
The threat of new entrants is high due to the relatively low barriers to entry in the industries in which Compass Diversified operates.
Intensity Of Rivalry
The intensity of rivalry is moderate due to the presence of several competitors in the market, but Compass Diversified's diversified business and strong brand presence help to mitigate the impact of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 55.75% |
| Debt Cost | 3.95% |
| Equity Weight | 44.25% |
| Equity Cost | 12.41% |
| WACC | 7.69% |
| Leverage | 126.01% |
Compass Diversified : Quality Control
Compass Diversified passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| TRC | Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, … |
| SPLP | Steel Partners Holdings L.P., through its subsidiaries, engages in industrial products, energy, defense, supply chain management, logistics, banking, and youth sports businesses worldwide. It operates through Diversified Industrial, Energy, and … |
| NNBR | NN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and … |
| RCMT | RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. It operates through three segments: Engineering, Specialty Health Care, and Life Sciences and … |
| FIP | FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation and energy industries. It operates a multi-modal crude oil and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Compass Diversified
A-Score
1-Year Total Return ->
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Steel Partners
A-Score
1-Year Total Return ->
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Tejon Ranch
A-Score
1-Year Total Return ->
4
RCM Technologies
A-Score
1-Year Total Return ->
5
FTAI Infrastructure
A-Score
1-Year Total Return ->
6
