Descripción de la empresa
Compass Diversified operates as a private equity firm that specializes in add-on acquisitions, buyouts, industry consolidation, recapitalization, and investments in late-stage and middle-market companies. The company targets leading industrial or branded consumer firms within the textiles, apparel, and luxury goods sectors, focusing on strategies that drive industry consolidation and operational improvements. It operates within the Industrials sector under the Conglomerates industry classification, positioning it as an entity that aggregates diverse business units to potentially create synergies across different operational verticals. With a market capitalization of $723.02M and an annual revenue of $1.87B supported by a workforce of 4,069 employees, the company maintains a significant presence in the middle-market investment landscape. These financial dimensions indicate that Compass Diversified manages a substantial portfolio of assets, generating nearly two billion dollars in revenue annually, which reflects the scale of its operations and the breadth of its investment activities within the industrial and consumer goods markets.
Salud financiera
The company reported a total revenue of $1.87B over the trailing twelve months, yet it recorded a net income loss of $273,062,016, while generating an EBITDA of $192.27M. The significant disparity between the positive EBITDA and the substantial negative net income reveals a cost structure heavily impacted by non-operating expenses, such as interest costs, which erode profitability despite core operational cash generation. Free cash flow for the period stands at $-13,598,250, indicating that the company is currently consuming cash rather than generating excess liquidity for reinvestment or shareholder returns, which constrains its immediate financial flexibility. Margins show a gross margin of 43.5%, suggesting efficient production relative to sales, but an operating margin of 11.0% and a negative profit margin of -12.1% highlight the pressure from financing costs and other overheads. In terms of liquidity and leverage, the company holds $68.02M in cash against total debt of $2.05B, resulting in a debt-to-equity ratio of 357.02%, which signifies a highly leveraged balance sheet typical of leveraged buyout structures. The current ratio of 2.42 indicates that the company possesses sufficient current assets to cover its short-term liabilities, providing a buffer against immediate liquidity crises. Return on equity is -53.7% and return on assets is 1.1%, metrics that collectively reveal management is currently unable to generate positive returns on the capital invested, primarily due to the high interest burden associated with its debt load.
Evaluación de valoración
Valuation metrics present a complex picture, with a P/E ratio (TTM) listed as N/A due to the reported net losses, contrasted by a forward P/E of 43.68. The absence of a trailing P/E while a forward P/E exists implies that the market is pricing in a future turnaround or significant earnings recovery trajectory, although current earnings are negative. The price-to-book ratio is -20.19, a negative figure that indicates the market values the company at a discount to its book value, reflecting concerns over its net debt position or the realizability of its assets. Alternative valuation measures include a price-to-sales ratio of 0.39 and an EV/EBITDA of 17.23, suggesting that despite the lack of profitability, investors are valuing the company based on its sales volume and earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week low of $4.58 and a 52-week high of $17.70, and based on the provided data points, the current valuation sits within a range that reflects significant volatility and potential re-rating risks relative to this historical band. The beta of 0.98 indicates that the stock's price volatility moves in line with the broader market, suggesting it does not exhibit extreme sensitivity to market swings compared to higher or lower beta peers.
Growth & Income
Revenue growth year-over-year stands at -5.1%, while earnings growth is N/A due to the lack of comparable positive earnings in the prior period. The contraction in revenue suggests a challenging operating environment or a strategic shift in the portfolio, whereas the lack of earnings growth data reinforces the company's current unprofitability status. Regarding income distribution, the company offers a dividend yield of 10.5%, but this is supported by a payout ratio of 404.6%, which is unsustainable given the negative net income and implies that dividends are likely being funded by cash reserves or debt rather than operating earnings. This high payout ratio indicates that the company is not reinvesting earnings into growth through dividends, but rather distributing excess cash flow or liquid assets to shareholders despite its financial constraints. The overall growth and income profile is characterized by negative revenue momentum and a reliance on high-yield dividends that are not backed by current earnings, presenting a risk profile where income is detached from operational profitability.