CompoSecure, Inc. (CMPO) | Investment Case

1. Company Snapshot

1.a. Company Description

CompoSecure, Inc.manufactures and designs metal, plastic, composite ID, and proprietary financial transaction cards in the United States and internationally.Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products.

The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which comprise the Arculus Key card Cold Storage hardware device and companion Arculus Wallet mobile App to keep the Private Key in the Arculus Key card highly secure and store cryptocurrency and digital assets.It serves financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists.The company was founded in 1910 and is based in Somerset, New Jersey.

Show Full description

1.b. Last Insights on CMPO

The recent 3-month performance of CompoSecure, Inc. was negatively impacted by a shareholder alert investigation, which may have contributed to the company's decline. The investigation, led by Kaskela Law LLC, aimed to determine whether CompoSecure and its officers breached their fiduciary duties to shareholders. Additionally, a price target cut by Needham analyst John Todaro, from $16 to $15, following the company's Q4 2024 earnings release, may have also weighed on the stock. Furthermore, the spin-off of Resolute Holdings, which was completed on February 28, 2025, may have caused some uncertainty among investors.

1.c. Company Highlights

Last Price	16.51
Change Percentage	-5.93%
Open	17.37
Previous Close	17.55
Market Cap ( Millions)	1682
Volume	7129136
Year High	26.78
Year Low	9.24
M A 50	20.58
M A 200	17.46

FCF Yield	-0.46%
Dividend Yield	0.02%
ROE	-269.41%
Debt / Equity	0.00%
Net Debt / EBIDTA	51.76%
Price To Book	8.94
Price Earnings Ratio	-15.98
Price To FCF	-216.71
Price To sales	82.89
EV / EBITDA	-21.87

2. GPGI Q4 2025: Robust Growth, Margin Pressure, and ROS Momentum

GPGI delivered a strong fourth‑quarter performance, with net sales for its two platform businesses totaling $983.1 million—$462.1 million from CompoSecure and $521 million from Husky. CompoSecure’s non‑GAAP net sales rose 17% YoY to $117.7 million, while Husky’s Q4 net sales increased to $521 million, although margins slipped due to a mix of new system sales and variable cost inefficiencies. Despite these headwinds, the company’s free‑cash‑flow conversion remains robust, and it is projecting a 7.6% revenue growth for FY 26. The company’s earnings guidance, however, remains elusive, with actual EPS coming out as “None” relative to analysts’ estimate of $0.2962. (Dave Cote)

Publication Date: Apr -15

                                    📋 Highlights
                                    CompoSecure Organic Growth:
                                                Achieved 9.9% YoY net sales increase to $462.1M in FY25, with Q4 non-GAAP sales up 17% to $117.7M.
Husky Full-Year Performance:
                                                Reported $1.57B in FY25 net sales, driven by volume growth, but margins impacted by strategic investments and cost inefficiencies.
2026 Pro Forma Guidance:
                                                Targets $2.18–$2.23B in sales, $620–$650M adjusted EBITDA, and $325–$375M adjusted free cash flow, with margin expansion in H2FY26.
CompoSecure Market Leadership:
                                                Dominates premium metal cards (9/10 top U.S. additions) with 75% recurring revenue, leveraging 1,000+ patents and Arculus authentication platform.

                                

Financial Performance

CompoSecure’s organic growth is anchored by its premium metal card platform and the emerging Arculus authentication suite, which together generate 75% recurring revenue. The firm’s gross‑margin expansion was driven by a favorable price mix and improved yields, a direct result of the Resolute operating system (ROS). Husky’s EBITDA margin was pressured by strategic investments and higher variable costs, but its high‑margin aftermarket revenue streams continue to underpin organic growth. Pro‑forma FY 26 guidance projects non‑GAAP net sales of $2.18‑$2.23 billion and adjusted EBITDA of $620‑$650 million, with a free‑cash‑flow range of $325‑$375 million.

Operating System Impact

The ROS rollout has begun to deliver tangible benefits across both businesses. In CompoSecure, ROS has disciplined cost structures and accelerated product launches, while in Husky it has enhanced commercial excellence and pricing discipline. The platform’s focus on high‑performance culture and disciplined underwriting is expected to lift margins in the second half of FY 26, offsetting the flat first‑half margin forecast driven by Husky’s investment cycle.

Valuation Snapshot

GPGI trades at a negative P/E of –15.67 and an EV/EBITDA of –21.43, reflecting the company’s current net‑loss position but also its high growth upside. The P/S ratio of 81.24 underscores the premium investors are willing to pay for the platform’s long‑term scalability, while the Net Debt/EBITDA of 0.52 indicates a manageable leverage profile as the firm prioritises debt repayment.

Future Outlook

3. NewsRoom

Reviewing Fidelity National Information Services (NYSE:FIS) & CompoSecure (NASDAQ:CMPO)

Apr -06

Source: defenseworld.net

SG Americas Securities LLC Has $2.55 Million Stock Position in CompoSecure, Inc. $CMPO

Apr -04

Source: defenseworld.net

Payoneer Global (NASDAQ:PAYO) and CompoSecure (NASDAQ:CMPO) Financial Analysis

Apr -03

Source: defenseworld.net

Top Niche Industrial Stocks: PBI, BRC, and CMPO

Mar -17

Source: 247wallst.com

CompoSecure Q4 Earnings Call Highlights

Mar -14

Source: defenseworld.net

Counterpoint Mutual Funds LLC Takes Position in CompoSecure, Inc. $CMPO

Feb -25

Source: defenseworld.net

CompoSecure, a Reporting Segment of GPGI, Inc, Announces CEO Transition

Jan -21

Source: globenewswire.com

CompoSecure (CMPO) Soars 9.2%: Is Further Upside Left in the Stock?

Jan -15

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Metal, Composite and Proprietary Financial Transaction Cards

Expected Growth: 10.2%

Growing demand for premium and durable financial transaction cards, increasing adoption of contactless payments, and rising need for customized cards drive CompoSecure's growth. The company's innovative metal, composite, and proprietary cards cater to this demand, positioning it for significant growth in the financial services industry.

7. Detailed Products

Arcula

A premium payment card product that offers advanced security features and design flexibility

Expedite

A rapid card production and fulfillment service that enables fast and secure delivery of payment cards

Card@Once

An instant issuance solution that allows financial institutions to issue fully functional payment cards on the spot

Dual Interface

A payment card product that combines the benefits of contactless and contact payment technologies

Metal Cards

Premium metal payment cards that offer a unique and luxurious payment experience

Digital Onboarding

A digital onboarding platform that enables customers to remotely apply for and receive payment cards

8. CompoSecure, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CompoSecure, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

CompoSecure, Inc. has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

CompoSecure, Inc. relies on a few key suppliers, giving them some bargaining power.

Threat Of New Entrants

The financial services industry is highly competitive, and new entrants can easily disrupt the market.

Intensity Of Rivalry

CompoSecure, Inc. operates in a highly competitive market with many established players, leading to intense rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	-73.48%
Debt Cost	7.26%
Equity Weight	173.48%
Equity Cost	7.60%
WACC	7.84%
Leverage	-42.36%

11. Quality Control: CompoSecure, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Insteel Industries

A-Score: 6.0/10

Value: 5.2

Growth: 4.3

Quality: 6.2

Yield: 8.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

Northwest Pipe

A-Score: 4.9/10

Value: 5.5

Growth: 6.6

Quality: 5.2

Yield: 0.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Proto Labs

A-Score: 4.4/10

Value: 3.3

Growth: 3.8

Quality: 6.1

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

Mayville Engineering Company

A-Score: 4.3/10

Value: 6.5

Growth: 7.4

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

CompoSecure

A-Score: 4.0/10

Value: 4.0

Growth: 1.4

Quality: 4.3

Yield: 1.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

Tredegar

A-Score: 3.9/10

Value: 6.8

Growth: 1.1

Quality: 2.8

Yield: 2.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

13.16%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.84%

CompoSecure, Inc. - US20459V1052

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CMPO

1.c. Company Highlights

Cheaper

Better Quality

Stable Momentum

Earnings Beats

Average Yield

Revenues Beats

Higher Growth

Medium Volatility

Strong Momentum

Earnings Miss

Average Growth

Revenues Miss

Lower Growth

Average Quality

Fairly Valued

2. GPGI Q4 2025: Robust Growth, Margin Pressure, and ROS Momentum

Financial Performance

Operating System Impact

Valuation Snapshot

Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Metal, Composite and Proprietary Financial Transaction Cards

Expected Growth: 10.2%

7. Detailed Products

Arcula

Expedite

Card@Once

Dual Interface

Metal Cards

Digital Onboarding

8. CompoSecure, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: CompoSecure, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.51$

Current Price

16.51$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA