Compass Diversified (CODI) AI Stock Analysis

Compass Diversified is a private equity firm specializing in strategic investments such as add-on acquisitions, buyouts, industry consolidation, recapitalization, and late-stage investments. Focusing primarily on North America, the firm targets niche industrial and branded consumer companies in manufacturing, distribution, consumer products, business services, safety and security, electronic components, food, and foodservice industries. Compass Diversified typically invests between $100 million and $800 million in companies with EBITDA ranging from $15 million to $80 million. The firm emphasizes controlling ownership, operating through its balance sheet with an investment horizon of five to seven years.

Compass Diversified generated a 5-year revenue CAGR of 5.3% from FY2020 to FY2025. Annual revenue expanded from $1.72B in FY2021 to $1.76B in FY2022, dipped to $1.69B in FY2023, and reached $1.79B in FY2024 and $1.87B in FY2025. Net income swung widely over this timeframe, posting $114.6M in FY2021, -$59.2M in FY2022, $108.6M in FY2023, -$208.9M in FY2024, and -$229.3M in FY2025. Gross margin was 38.5% in FY2025 compared to 42.0% in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue fell 11.4% year-over-year and quarterly earnings dropped 96.3%.

As of June 30, 2026, Compass Diversified held $87.4M in cash and short-term investments against $1.75B in total debt, resulting in net debt of $1.66B. Shareholders' equity was $472.6M, translating to a debt-to-equity ratio of 3.70, while the current ratio was 2.26. Total assets totaled $2.75B. In FY2025, operating cash flow was -$6.8M and free cash flow was -$51.1M. Cash outlays during FY2025 included $44.3M for capital expenditures, $59,000 for share buybacks, and $75.2M in dividends paid.

Compass Diversified closed at $10.01 on October 16, 2026, resulting in a market cap of $753.1M and an enterprise value of $2.83B. Its forward P/E of 11.9x is lower than the 17.2x median of its US-listed Industrials peers. The stock trades at an EV/EBITDA of 13.4x versus the peer median of 13.9x, and a price-to-sales multiple of 0.4x compared to the peer median of 1.5x. Over the past year, CODI shares rose 33.8%, beating the S&P 500 return of 16.8%, but its 5-year return of -60.8% trailed the benchmark's 83.0% gain.

Across 7 analyst recommendations, Compass Diversified has 4 Strong Buy, 1 Buy, and 2 Hold ratings. The mean price target is $17.00, representing a 69.8% premium over the last close of $10.01. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.05 on revenue of $1.68B. For the subsequent fiscal year, 6 analysts forecast EPS of $0.67 and revenue of $1.73B. Over the last 4 quarters, the company exceeded EPS expectations 2 times.

This page is an AI-written research summary of Compass Diversified (CODI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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