Compass Diversified
- Open
- 9.88
- Day high
- 10.05
- Day low
- 9.75
- Prev close
- 9.93
- Volume
- 570K
- Mkt cap
- $747M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 1.9
- P/S
- 0.4
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$400K over the last 3 months (2 open-market buys, 2 sales)
- 🏛Institutions reducing (13F)
Compass Diversified (CODI) is a Industrials company listed on NYSE. The stock is up 56% over the past year. Over the trailing 3 months, insiders filed 2 open-market buys and 2 sales (SEC Form 4).
Compass Diversified (CODI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CODI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $-0.06 | $0.12 | +300.0% | $427M | -2.5% |
| Feb 26, 2026 | — | $-0.98 | — | $473M | — |
| Feb 27, 2025 | $0.56 | $0.62 | +10.7% | $549M | -12.2% |
| Oct 30, 2024 | $0.54 | $0.43 | -20.4% | $583M | -8.0% |
| Jul 31, 2024 | $0.50 | $0.92 | +84.0% | $543M | -1.4% |
| May 1, 2024 | $0.46 | $0.46 | +0.0% | $524M | -2.9% |
| Feb 28, 2024 | $0.40 | $0.32 | -20.0% | $423M | -26.6% |
| Nov 2, 2023 | $0.42 | $0.38 | -9.5% | $570M | -2.2% |
| Aug 2, 2023 | $0.39 | $0.49 | +25.6% | $524M | -5.9% |
| May 3, 2023 | $0.36 | $0.29 | -19.4% | $542M | +0.1% |
| Mar 1, 2023 | $0.42 | $0.31 | -26.2% | $595M | -0.7% |
| Nov 3, 2022 | $0.46 | $0.46 | +0.0% | $598M | +8.8% |
CODI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 2, 2026 | ADW Capital Management, LLC10 percent owner | Sell | 10,000 | $20.00 |
| Jun 2, 2026 | ADW Capital Management, LLC10 percent owner | Buy | 10,000 | $10.00 |
| May 11, 2026 | ADW Capital Management, LLC10 percent owner | Buy | 30,000 | $10.00 |
| May 11, 2026 | ADW Capital Management, LLC10 percent owner | Sell | 30,000 | $20.00 |
| Apr 6, 2026 | Keller Stephenother: See Remark (a) | Buy | 20,000 | $8.66 |
| Apr 6, 2026 | Keller Stephenother: See Remark (a) | Buy | 10,000 | $8.50 |
| Mar 4, 2025 | Keller Stephenother: See Remark (a) | Buy | 1,500 | $22.00 |
| Nov 12, 2024 | CGI Magyar Holdings LLC10 percent owner | Sell | 135,274 | $23.05 |
| Sep 23, 2024 | MACIARIELLO PATRICK Aother: See Remark (a) | Buy | 5,000 | $21.87 |
| Sep 20, 2024 | Keller Stephenother: See Remark (a) | Buy | 5,000 | $21.63 |
| Sep 12, 2024 | Keller Stephenother: See Remark (a) | Buy | 5,000 | $20.40 |
| Sep 12, 2024 | Locke Simon Heidiother: See Remark (a) | Buy | 19,800 | $20.16 |
| Aug 7, 2024 | Faulkingham Ryan Jother: See Remark (a) | Buy | 2,000 | $20.17 |
| Aug 7, 2024 | Faulkingham Ryan Jother: See Remark (a) | Buy | 4,250 | $20.19 |
| Jul 18, 2024 | CGI Magyar Holdings LLC10 percent owner | Sell | 200,000 | $23.49 |
Source: CODI SEC Form 4 filings, latest Jun 2, 2026. For informational purposes only — not investment advice.
See the full CODI insider & 13F page →Compass Diversified company profile
Overview
Compass Diversified (NYSE:CODI) is a publicly traded private equity firm founded in 2005 and based in Westport, Connecticut. The company operates as a holding company that acquires controlling interests in middle-market businesses across diverse industries. Since its initial public offering in 2006, Compass Diversified has built a portfolio of niche industrial and branded consumer companies, focusing on businesses with strong market positions and growth potential. The firm typically holds investments for five to seven years and seeks to create value through operational improvements and strategic initiatives.
Business
Compass Diversified operates as a permanent capital vehicle that acquires and manages a diversified portfolio of middle-market companies. The firm specializes in acquiring controlling ownership interests in businesses across two primary verticals: branded consumer products and niche industrial companies. The company's branded consumer vertical includes several notable businesses. Lugano Diamonds operates a disruptive jewelry retail model with salons that offer direct-to-consumer diamond sales, experiencing extraordinary growth with over 50% annual revenue increases. BOA Technology manufactures closure systems for footwear, apparel, and equipment, serving markets from athletic wear to military applications. PrimaLoft produces high-performance synthetic insulation materials used in outdoor apparel and gear. The Honey Pot Company creates plant-based feminine hygiene products. This vertical typically generates approximately 70-75% of total adjusted EBITDA. The niche industrial vertical encompasses companies like Altor Solutions, which provides electronic components and solutions, Arnold Magnetics, a manufacturer of permanent magnets and magnetic assemblies, and Sterno Products, which produces fuel and food warming products for the foodservice industry. This segment contributes roughly 25-30% of adjusted EBITDA. Compass Diversified targets companies with EBITDA between $15 million and $80 million, typically investing $100 million to $800 million per acquisition. The firm seeks businesses in manufacturing, distribution, consumer products, business services, safety and security, electronic components, and food sectors, with a geographic focus on North America.
Revenue model
Compass Diversified generates revenue through dividend distributions from its portfolio companies and capital gains from eventual exits. As a holding company, CODI does not directly sell products or services but rather collects cash flows from its subsidiary businesses, which operate independently under their own management teams. The portfolio companies generate revenue through various business models depending on their industry. Consumer brands like Lugano operate on direct-to-consumer sales with high margins, while BOA Technology operates on a B2B model selling closure systems to manufacturers. Industrial companies typically serve as suppliers to larger manufacturers or distributors. Several factors influence CODI's profitability margins. Positive margin drivers include operational leverage as portfolio companies scale, pricing power in niche markets, and the ability to implement cost efficiencies across the portfolio. The firm benefits from diversification across different economic cycles, as consumer and industrial businesses often perform differently during various market conditions. Negative margin pressures come from macroeconomic headwinds such as inflation affecting input costs, supply chain disruptions, and inventory destocking by retail customers. Regulatory challenges, such as PFAS regulations affecting certain product lines, can also impact margins. Competition from larger players and the cyclical nature of industrial markets present ongoing challenges. Additionally, the firm faces integration costs when acquiring new businesses and must service debt obligations across its portfolio companies. The company's leverage ratio of approximately 3.2x debt-to-EBITDA affects its cost of capital and acquisition capacity, while interest rate fluctuations directly impact financing costs across the portfolio.
Competitive moat
Compass Diversified's competitive moat is moderate but multifaceted, stemming from its diversified portfolio approach and focus on niche market leaders. The firm's primary defensive characteristics include its permanent capital structure, which allows it to hold investments longer than traditional private equity funds that face redemption pressures. This patient capital approach enables portfolio companies to invest in long-term growth initiatives without pressure for quick exits. The company's diversification across industries and economic cycles provides stability, as consumer and industrial businesses often perform inversely during different market conditions. Many portfolio companies hold strong positions in niche markets with limited competition, such as Lugano's disruptive jewelry retail model or BOA's specialized closure systems. However, the moat faces several vulnerabilities. Competition from larger private equity firms with deeper pockets can drive up acquisition prices and limit deal flow. The firm operates in a commoditized industry where differentiation primarily comes from deal sourcing and operational expertise rather than proprietary technology or exclusive market access. Potential disruption could come from economic downturns that simultaneously affect multiple portfolio companies, regulatory changes impacting specific industries, or shifts in consumer behavior that undermine traditional retail models. The firm's reliance on leverage amplifies both returns and risks, making it vulnerable to credit market disruptions. The strength of individual portfolio companies varies significantly, with some like Lugano demonstrating strong competitive positions while others face more competitive pressures. Overall, CODI's moat is primarily operational and financial rather than structural, requiring continuous active management to maintain competitive advantages.
Risks & safety
The margin of safety appears moderate with some concerns regarding cash flow generation and leverage levels. • Liquidity and Solvency: Current ratio of 4.07x indicates strong short-term liquidity. However, negative free cash flow of -$124.3 million for FY 2024 raises concerns about cash generation capability. Cash position of $59.7 million is relatively modest given the scale of operations. • Debt Levels: Debt-to-equity ratio of 1.37x represents moderate leverage. The firm maintains a leverage ratio around 3.2x debt-to-EBITDA, which is manageable but limits financial flexibility during downturns. • Valuation Metrics: EV/EBITDA of 9.4x appears reasonable for a diversified holding company. Price-to-book ratio of 1.34x suggests modest premium to book value. Graham number of 8.1 indicates potential undervaluation relative to conservative metrics. • Other Considerations: The company maintains dividend payments despite negative free cash flow, which may not be sustainable long-term. Portfolio diversification provides some downside protection, but exposure to cyclical industries creates earnings volatility. Recent acquisitions and divestitures demonstrate active portfolio management but also indicate ongoing capital allocation needs.
Recent development
Over the past few years, Compass Diversified has executed several strategic pivots focused on portfolio optimization and vertical expansion. The company successfully divested non-core assets including the Crosman airgun business and Ergobaby, while simultaneously acquiring growth-oriented businesses like The Honey Pot Company in feminine hygiene products and Lifoam in temperature-controlled packaging. A major strategic development has been the international expansion initiative, particularly with Lugano Diamonds opening its first international salon in London, which exceeded performance expectations and signals potential for broader European expansion. The firm has also launched a healthcare vertical initiative, exploring opportunities in the healthcare sector to further diversify its portfolio. Capital structure optimization has been another key focus, with the company raising $115 million in preferred equity and implementing a $100 million share repurchase program. The firm sold its Marucci Sports business to Fox Factory for $572 million, generating significant capital for reinvestment while maintaining focus on higher-growth opportunities. Recent operational improvements include implementing an ESG technology platform and releasing the company's inaugural sustainability report, reflecting increased focus on environmental and social governance factors. The firm has also developed the "CODI Momentum Index" to better track economic conditions affecting its portfolio companies, demonstrating enhanced analytical capabilities for investment decision-making.
CODI company profile · for informational purposes only — not investment advice.
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