Compass Diversified

CODI

Conglomerates · Industrials

Price

$10.33

-0.13 (-1.24%)

Market Cap

$777.2M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+15.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 65.4M (2021) → 75.2M (2025)

Compass Diversified is a holding company that owns a collection of smaller businesses across different industries. Its subsidiaries make and sell products like tactical gear and firearms accessories (5.11 and Lugano are among its brands), outdoor and sporting goods, and industrial components. The company's customers range from everyday consumers to government and military buyers, depending on the subsidiary.

Compass Diversified makes money by owning these businesses and collecting the cash they generate, similar to how a private equity firm operates but in a publicly traded structure. It is based in the United States and focuses almost entirely on North American markets. The company's model depends on picking and managing businesses well, and its low operating margin and ROIC suggest its current portfolio is under pressure to improve profitability. The main risk is that weak performance across subsidiaries could strain its ability to maintain the dividends it regularly pays to shareholders.

Winston Score History

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on CODI in the last 12 months.

Unlock the full Smart Money Map — every trade plotted on the price chart with politicians, amounts and returns since each trade. Founder's Deal is $57/mo locked for life.

Unlock politician trades

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-5.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

11.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$61M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Compass Diversified's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

44.4%

Healthy — 44.4% gross margin

Operating Margin

4.4%

Thin — 4.4% operating margin

ROCE

0.8%

Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

-8.2%

Shrinking sales (-8.2% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

0.5%

Thin free cash flow (0.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

4.64

Heavy debt load (4.64)

Interest Cover

0.15x

Dangerous — barely covers interest (0.2x)

Interest coverage below 1. Their profits don't cover the interest bill.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial