Compass Diversified Holdings (CODI) Stock Analysis
Verdict: WATCH (do not buy)
Deleveraging via asset sales provides a tactical recovery narrative, but extreme debt levels and volatile earnings cap immediate upside.
Investment score: 48/100
Analysis as of
Is Compass Diversified Holdings stock worth reviewing? The TradeMates thesis
Neutral on CODI at 11.7 as the market has already priced in the recent asset sales. Health remains precarious with -12.3% net margins.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 35/100 (weight 15%)
- Insider Sentiment: 60/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Compass Diversified Holdings opportunities and risks
What speaks for CODI
- Deleveraging Catalyst
What speaks against CODI
- Excessive Financial Leverage
Peers and competitors
- BRK.A
- CNNE
- RAFI
- TMXN
- QEDN
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CODI | n/a | 0.5x | 88.3x | 43.7% | -12.3% | 1.1% |
| CNNE | n/a | 1.7x | n/a | 2.9% | -103.8% | -7.6% |
| RAFI | n/a | 3.7x | 20.1x | 41.2% | -13.4% | -0.2% |
| TMXN | n/a | 0.0x | n/a | 0.0% | 0.0% | -1.7% |
| QEDN | n/a | 0.5x | 1.6x | -2.9% | -903.9% | 0.0% |
| Peer median | n/a | 1.1x | n/a | 1.4% | -58.6% | -0.9% |
Frequently asked questions about Compass Diversified Holdings (CODI)
Is CODI stock a good investment?
The TradeMates model rates Compass Diversified Holdings as WATCH (do not buy) with an investment score of 48/100. Neutral on CODI at 11.7 as the market has already priced in the recent asset sales. Health remains precarious with -12.3% net margins. This is algorithmic model output, not personal investment advice.
Is CODI stock a buy?
The TradeMates model verdict for CODI is WATCH (do not buy) with an investment score of 48/100. Treat this as a model signal to review, not a personal buy recommendation.