D/B/A Compass Diversified Holdings Shares of Beneficial Interest (CODI)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Compass Diversified as a holding company that buys and owns middle-market industrial and branded consumer businesses, financed partly with debt. The record is uneven. In fiscal 2023, the year ended 2023-12-31, it reported revenue of $1.7B and net income of $108.6M. In fiscal 2024, revenue was $1.8B but net income was a loss of $208.9M. In fiscal 2025, revenue was $1.9B and the net loss widened to $226.4M. The latest quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $424.0M and net income of $81.1M, or diluted EPS of $0.86. But fiscal Q1 2026 ended 2026-03-31 had a net loss of $30.8M, so the turn is not yet smooth. Financial health is the main issue. FairStock calculations show debt-to-equity of 2.88, return on equity of -22.61%, return on capital employed of 0.24%, and an Altman Z-score of -0.05. Those are signs of leverage and weak returns. On the positive side, trailing free cash flow is $79.6M, a 9.6% free cash flow yield, and the dividend yield is 9.45%; cash flow roughly covers the payout, while earnings do not. Based on the 2026-10-13 close of $11.04, FairStock's P/E is -5.78 and EV/EBITDA is 11.07, neither a classic bargain. The Piotroski F-score of 7/9 and the Lynch category of TURNAROUND — loss in latest year after earlier profits — fit the story. I see no durable parent-level moat; results depend on subsidiaries, asset sales, and debt management. The 24/100 FairStock score says caution.

In plain English: Compass Diversified owns and buys middle-market industrial and consumer businesses. Its latest full year showed a loss and the company carries a lot of debt, but the most recent quarter was profitable and cash flow roughly covers a very high dividend. At today's price it looks like a risky turnaround rather than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer