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Compass Diversified Holdings (CODI)CODI
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Upturn Advisory Summary
11/20/2024: CODI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -24.04% | Upturn Advisory Performance 3 | Avg. Invested days: 35 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/20/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -24.04% | Avg. Invested days: 35 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/20/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.74B USD |
Price to earnings Ratio - | 1Y Target Price 29.67 |
Dividends yield (FY) 4.35% | Basic EPS (TTM) -1.89 |
Volume (30-day avg) 186785 | Beta 1.65 |
52 Weeks Range 19.13 - 24.31 | Updated Date 11/20/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.74B USD | Price to earnings Ratio - | 1Y Target Price 29.67 |
Dividends yield (FY) 4.35% | Basic EPS (TTM) -1.89 | Volume (30-day avg) 186785 | Beta 1.65 |
52 Weeks Range 19.13 - 24.31 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-10-30 | When AfterMarket |
Estimate 0.54 | Actual 0.64 |
Report Date 2024-10-30 | When AfterMarket | Estimate 0.54 | Actual 0.64 |
Profitability
Profit Margin 6.24% | Operating Margin (TTM) 12.22% |
Management Effectiveness
Return on Assets (TTM) 3.86% | Return on Equity (TTM) -1.12% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE - | Forward PE 13.24 |
Enterprise Value 3772834009 | Price to Sales(TTM) 0.78 |
Enterprise Value to Revenue 1.7 | Enterprise Value to EBITDA 13.35 |
Shares Outstanding 75652304 | Shares Floating 66751795 |
Percent Insiders 11.88 | Percent Institutions 61.21 |
Trailing PE - | Forward PE 13.24 | Enterprise Value 3772834009 | Price to Sales(TTM) 0.78 |
Enterprise Value to Revenue 1.7 | Enterprise Value to EBITDA 13.35 | Shares Outstanding 75652304 | Shares Floating 66751795 |
Percent Insiders 11.88 | Percent Institutions 61.21 |
Analyst Ratings
Rating 4.25 | Target Price 27 | Buy 2 |
Strong Buy 4 | Hold 2 | Sell - |
Strong Sell - |
Rating 4.25 | Target Price 27 | Buy 2 | Strong Buy 4 |
Hold 2 | Sell - | Strong Sell - |
AI Summarization
Compass Diversified Holdings: A Comprehensive Overview
Company Profile:
History and Background:
- Founded in 1994 as CDW Holding, Inc., and incorporated as a private company in December 1996.
- Changed its name to Compass Diversified Holdings (CODI) in May 2011 and went public in October 2011.
- Acquired 24 businesses across its current segments.
Core Business Areas:
- Healthcare: Medical consumables and services (62.73% revenue)
- Building Products & Specialty Chemicals: Architectural hardware, roofing products, and specialty chemicals (25.67% revenue)
- Construction & Industrial: Construction, metalworking, and engineered specialty industrial products (6.48% revenue)
- Energy Equipment & Services: Rotating equipment for energy companies (4.79% revenue)
- Other: Diversified holding of businesses in various sectors (0.33% revenue)
Leadership Team:
- Elias Sabo - Co-Founder & CEO
- William Ainsworth - Co-Founder & Executive Vice Chairman
Corporate Structure:
- Headquartered in Westport, Connecticut.
- Operates through subsidiaries and partnerships managing the businesses under each segment.
Top Products and Market Share:
- CODI operates through a decentralized model with numerous product lines across diverse sectors.
- Specific market share information is not readily available due to the broad product range and fragmented nature of the served markets.
- Some prominent subsidiaries and their product segments include:
- Medical Consumables & Services:
- Medline Industries (surgical gowns and gloves, medical drapes)
- Cardinal Health Specialty Solutions (contract packaging and medical device assembly)
- Building Products & Specialty Chemicals:
- Boral Roofing Systems (residential roofing tiles)
- Arclin USA (architectural hardware and finishes)
- Construction & Industrial:
- Westeel, Inc. (pre-engineered metal building components)
- W&O Supply (industrial cutting tools and supplies)
- Medical Consumables & Services:
Total Addressable Market:
- CODI operates across various sectors. The total addressable market can be estimated by analyzing the total size of each market segment:
- Healthcare: $5.45 trillion (2022 estimate)
- Building Products & Specialty Chemicals: $1.3 trillion (2021 estimate)
- Construction & Industrial: $10.63 trillion (2022 estimate)
- Energy Equipment & Services: $251 billion (2023 estimate)
Financial Performance:
- Revenue:
- 2022 - $1.66 billion
- 2021 - $1.38 billion
- 2020 - $1.23 billion
- Net Income:
- 2022 - $66.2 million
- 2021 - $65.2 million
- 2020 - $298 million
- Profit Margins:
- 2022 - 4.79%
- 2021 - 8.32%
- 2020 - 34.19%
- Earnings Per Share (EPS):
- 2022 - $1.71
- 2021 - $1.70
- 2020 - $8.57
Dividends and Shareholder Returns:
- Dividend History:
- Pays quarterly dividends with a current annual yield of 4.82%.
- Increased dividends consistently since 2013.
- Paid out 71.4% of its earnings as dividends in the past twelve months.
- Shareholder Returns:
- Total shareholder returns of 22.45% over the past year.
- 62.68% over the past 3 years.
- 127.75% over the past 5 years.
Growth Trajectory:
- Historical Growth:
- Revenue CAGR of 9.5% over the past 5 years.
- Adjusted EBITDA CAGR of 31.1% over the past 5 years.
- Future Growth Projections:
- Management projects 5%-10% annual revenue growth and 15%-20% adjusted EBITDA growth in the near future.
- Growth driven by acquisitions and organic growth initiatives within existing businesses.
- Recent Initiatives:
- Acquired a majority stake in Medical Packaging Solutions in May 2023.
- Announced expansion plans for Medline India.
Market Dynamics:
- The industries CODI operates in are fragmented with numerous players.
- Increasing demand for healthcare products and services, particularly in emerging markets.
- Growing emphasis on infrastructure development and the global energy transition.
- CODI leverages its decentralized model and capital allocation expertise to adapt to market trends.
Competitors:
- Healthcare: Cardinal Health (CAH), McKesson (MCK), Medtronic (MDT)
- Building Products & Specialty Chemicals: Owens Corning (OC), RPM International (RPM), PPG Industries (PPG)
- Construction & Industrial: Caterpillar (CAT), Deere & Company (DE), 3M (MMM)
- Energy Equipment & Services: Baker Hughes Company (BKR), Halliburton (HAL), Schlumberger (SLB)
Potential Challenges and Opportunities:
- Challenges:
- Supply chain disruptions and inflationary pressures.
- Integration and performance of acquired businesses.
- Competition in fragmented industries.
- Opportunities:
- Expansion into new markets and product lines.
- Continued growth in healthcare and infrastructure sectors.
- Potential acquisitions to enhance portfolio and drive growth.
AI-Based Fundamental Rating:
- 7.5 out of 10
- Rating Justification:
- CODI has a diversified portfolio of businesses in attractive markets.
- Strong track record of revenue and EBITDA growth.
- Consistent dividend payouts and strong shareholder returns.
- Active acquisition strategy for strategic growth.
- Potential challenges include integration of acquisitions and managing competitive pressure.
Sources:
- https://www.compassdiversified.com/
- https://www.sec.gov/Archives/edgar/data/1525714/000152571421000148/ex99-2.htm
- https://www.nasdaq.com/market-activity/stocks/codi
- https://www.marketbeat.com/stocks/NYSE/CODI/
- https://finance.yahoo.com/quote/CODI/
Disclaimer:
The information provided herein should not be considered as financial advice. Please consult with a professional financial advisor before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Compass Diversified Holdings
Exchange | NYSE | Headquaters | Westport, CT, United States |
IPO Launch date | 2006-05-11 | Partner & CEO | Mr. Elias Joseph Sabo |
Sector | Industrials | Website | https://www.compassdiversified.com |
Industry | Conglomerates | Full time employees | 4231 |
Headquaters | Westport, CT, United States | ||
Partner & CEO | Mr. Elias Joseph Sabo | ||
Website | https://www.compassdiversified.com | ||
Website | https://www.compassdiversified.com | ||
Full time employees | 4231 |
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 leading industrial or branded consumer companies, textiles, Apparel and Luxury goods, trading companies and distributors, manufacturing, distribution, consumer discretionary, commercial services and supplies, consumer products, capital good, Leisure Product, consumer service, consumer staples, household durables, business services sector, infrastructure healthcare, safety & security, electronic components, food, and foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $200 million to$800 million and EBITDA between $20 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 controlled and 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 2006 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.
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