Compass Diversified Operating Margin vs. Revenue

CODI Stock  USD 23.95  0.29  1.23%   
Based on the measurements of profitability obtained from Compass Diversified's financial statements, Compass Diversified's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Compass Diversified's ability to earn profits and add value for shareholders.

Compass Diversified Operating Profit Margin

0.0303

The Compass Diversified's current Operating Cash Flow Sales Ratio is estimated to increase to 0.05, while Price To Sales Ratio is projected to decrease to 0.58. As of now, Compass Diversified's Net Income From Continuing Ops is decreasing as compared to previous years. The Compass Diversified's current Change To Netincome is estimated to increase to about 39.8 M, while Operating Income is projected to decrease to under 52.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.260.4339
Way Down
Slightly volatile
For Compass Diversified profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Compass Diversified to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Compass Diversified Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Compass Diversified's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Compass Diversified Holdings over time as well as its relative position and ranking within its peers.
  

Compass Diversified's Revenue Breakdown by Earning Segment

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Is Multi-Sector Holdings space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Compass Diversified. If investors know Compass will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Compass Diversified listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.13)
Dividend Share
1
Earnings Share
(1.89)
Revenue Per Share
29.678
Quarterly Revenue Growth
0.118
The market value of Compass Diversified is measured differently than its book value, which is the value of Compass that is recorded on the company's balance sheet. Investors also form their own opinion of Compass Diversified's value that differs from its market value or its book value, called intrinsic value, which is Compass Diversified's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Compass Diversified's market value can be influenced by many factors that don't directly affect Compass Diversified's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Compass Diversified's value and its price as these two are different measures arrived at by different means. Investors typically determine if Compass Diversified is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compass Diversified's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Compass Diversified Revenue vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Compass Diversified's current stock value. Our valuation model uses many indicators to compare Compass Diversified value to that of its competitors to determine the firm's financial worth.
Compass Diversified Holdings is number one stock in operating margin category among its peers. It also is the top company in revenue category among its peers totaling about  16,848,412,439  of Revenue per Operating Margin. As of now, Compass Diversified's Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Compass Diversified's earnings, one of the primary drivers of an investment's value.

Compass Diversified's Earnings Breakdown by Geography

Compass Revenue vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Compass Diversified

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.12 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Compass Diversified

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
2.06 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Compass Revenue vs Competition

Compass Diversified Holdings is the top company in revenue category among its peers. Market size based on revenue of Financials industry is currently estimated at about 73.68 Billion. Compass Diversified holds roughly 2.06 Billion in revenue claiming about 2.79% of equities under Financials industry.

Compass Diversified Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Compass Diversified, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Compass Diversified will eventually generate negative long term returns. The profitability progress is the general direction of Compass Diversified's change in net profit over the period of time. It can combine multiple indicators of Compass Diversified, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income111 K116.5 K
Operating Income90.1 M52.9 M
Income Before Tax-17.4 M-16.5 M
Net Income Applicable To Common Shares41.8 M81.8 M
Net Loss-38.7 M-36.8 M
Income Tax Expense21.3 M22.4 M
Total Other Income Expense Net-107.5 M-102.1 M
Net Income From Continuing Ops21 M38.4 M
Non Operating Income Net Other-4.5 M-4.3 M
Interest IncomeM1.9 M
Net Interest Income-110.2 M-104.7 M
Change To Netincome37.9 M39.8 M
Net Income Per Share 3.42  3.59 
Income Quality(2.02)(1.91)
Net Loss(14.15)(13.44)

Compass Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Compass Diversified. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Compass Diversified position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Compass Diversified's important profitability drivers and their relationship over time.

Use Compass Diversified in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Compass Diversified position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Compass Diversified will appreciate offsetting losses from the drop in the long position's value.

Compass Diversified Pair Trading

Compass Diversified Holdings Pair Trading Analysis

The ability to find closely correlated positions to Compass Diversified could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compass Diversified when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Compass Diversified - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Compass Diversified Holdings to buy it.
The correlation of Compass Diversified is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Compass Diversified moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Compass Diversified moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Compass Diversified can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Compass Diversified position

In addition to having Compass Diversified in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Companies that are involved in the building and marketing of online gaming-related products. The Online Gaming theme has 48 constituents at this time.
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When determining whether Compass Diversified offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Compass Diversified's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Compass Diversified Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Compass Diversified Holdings Stock:
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You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
To fully project Compass Diversified's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Compass Diversified at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Compass Diversified's income statement, its balance sheet, and the statement of cash flows.
Potential Compass Diversified investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Compass Diversified investors may work on each financial statement separately, they are all related. The changes in Compass Diversified's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Compass Diversified's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.