📊 CODI-PC Key Takeaways
Investment Thesis
Compass Diversified Holdings exhibits severe operational distress with negative net income of $226.4M despite $1.9B in revenue, indicating fundamental business challenges beyond temporary headwinds. The company is burning cash with negative operating cash flow of $6.8M and negative free cash flow of $51.1M, while carrying excessive debt of $1.9B against only $442M in equity. Interest coverage of 0.1x signals inability to service debt from operations, presenting acute solvency risk.
CODI-PC Strengths
- Solid gross margin of 43.5% indicates reasonable product pricing power and cost management at the production level
- Strong current ratio of 2.42x and quick ratio of 1.26x suggest adequate near-term liquidity to meet obligations
- Revenue growth of 4.8% YoY demonstrates ongoing demand for products despite operational challenges
CODI-PC Risks
- Massive net loss of $226.4M with negative net margin of -12.1% indicates core business is unprofitable at scale
- Negative free cash flow of $51.1M combined with $1.9B debt and only 0.1x interest coverage creates imminent refinancing and solvency risk
- Operating cash flow turning negative at -$6.8M despite positive revenue growth suggests deteriorating operational efficiency and working capital management
- Debt-to-equity ratio of 4.25x represents severe over-leverage with minimal equity cushion for losses
- Return on equity of -51.2% and ROA of -7.4% indicate destruction of shareholder value and poor asset utilization
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Quarterly net income progression and ability to return to profitability
- Debt reduction progress and refinancing capacity given negative earnings
- Working capital management and cash conversion cycle improvements
- Operating margin expansion through cost reduction initiatives
CODI-PC Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.42x current ratio provides a solid financial cushion.
CODI-PC Profitability Ratios
CODI-PC vs Default Sector
How Compass Diversified Holdings compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CODI-PC Balance Sheet & Liquidity
CODI-PC 5-Year Financial Trend
5-Year Trend Summary: Compass Diversified Holdings's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $0.70 reflects profitable operations.
CODI-PC Growth Metrics (YoY)
CODI-PC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $456.6M | -$36.0M | $-0.62 |
| Q2 2025 | $426.7M | -$51.2M | $-0.88 |
| Q1 2025 | $410.8M | -$30.0M | $-0.59 |
| Q3 2024 | $521.1M | $887.0K | $0.08 |
| Q2 2024 | $486.9M | $13.6M | $-0.35 |
| Q1 2024 | $483.9M | -$1.6M | $-0.85 |
| Q3 2023 | $569.6M | -$1.8M | $0.20 |
| Q2 2023 | $515.6M | $13.6M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CODI-PC Capital Allocation
CODI-PC SEC Filings
Access official SEC EDGAR filings for Compass Diversified Holdings (CIK: 0001345126)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CODI-PC
What is the AI rating for CODI-PC?
Compass Diversified Holdings (CODI-PC) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CODI-PC's key strengths?
Solid gross margin of 43.5% indicates reasonable product pricing power and cost management at the production level. Strong current ratio of 2.42x and quick ratio of 1.26x suggest adequate near-term liquidity to meet obligations.
What are the risks of investing in CODI-PC?
Massive net loss of $226.4M with negative net margin of -12.1% indicates core business is unprofitable at scale. Negative free cash flow of $51.1M combined with $1.9B debt and only 0.1x interest coverage creates imminent refinancing and solvency risk.
What is CODI-PC's revenue and growth?
Compass Diversified Holdings reported revenue of $1.9B.
Does CODI-PC pay dividends?
Compass Diversified Holdings pays dividends, with $69.6M distributed to shareholders in the trailing twelve months.
Where can I find CODI-PC SEC filings?
Official SEC filings for Compass Diversified Holdings (CIK: 0001345126) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CODI-PC's EPS?
Compass Diversified Holdings has a diluted EPS of $-3.59.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.