Compass

COMP

Software - Application · Real Estate

Price

$12.00

-0.18 (-1.48%)

Market Cap

$7.30B

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+75.3% over 4y

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

Diluted shares outstanding: 326.3M (2021) → 572.0M (2025)

Compass is a real estate technology company that helps people buy and sell homes. It builds software tools for real estate agents — things like apps to manage listings, track clients, and close deals faster. Compass operates across the United States and is one of the largest residential real estate brokerages in the country by agent count.

The company makes money mainly by taking a share of the commission when a home is bought or sold through one of its agents. It has over 30,000 agents on its platform and operates in dozens of major U.S. cities. Compass's main competitive edge is its proprietary software, which it uses to attract and retain top agents — but the business is heavily tied to the health of the housing market, and rising interest rates or a slowdown in home sales can quickly pressure its already thin margins.

Winston Score History

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

+99.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+133.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$366M/ year

↑ Rising (+94% vs prior year)

5.3% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

3.5%ownership

Relatively low insider ownership

Cash Runway

~9 months

$484M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Compass grew revenue 99% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

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.

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Quality

Gross Margin

5.0%

Thin — 5.0% gross margin

Operating Margin

-5.8%

Losing money on operations — -5.8%

ROCE

-2.3%

Weak — -2.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+40.1%

Fast-growing sales (40.1% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

258%

Turns 258% of profit into real cash

FCF Margin

0.2%

Thin free cash flow (0.2%)

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

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Stability

Debt / Equity

1.39

Elevated debt (1.39)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/A

Data not available

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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