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CODI-PB

Compass Diversified

CODI-PB

Compass Diversified • NYSE
$18.33 ▲ 1.43% (+0.26)
Market Cap $538.71 M
52w High $24.45
52w Low $12.75
Dividend Yield 1.97%
P/E 21.29
Volume 4.90K
Outstanding Shares 28.81M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2024 $548.725M ▼ $166.256M ▼ $11.921M ▼ 2.172% ▼ $-0.13 ▼ $90.528M ▼
Q3-2024 $582.623M ▲ $204.31M ▲ $22.064M ▲ 3.787% ▲ $0.078 ▲ $106.737M ▲
Q2-2024 $542.595M ▲ $197.771M ▼ $-19.529M ▼ -3.599% ▼ $-0.45 ▲ $73.353M ▼
Q1-2024 $524.29M ▲ $203.251M ▲ $-1.648M ▼ -0.314% ▼ $-0.89 ▼ $74.73M ▲
Q4-2023 $473.13M $121.459M $137.437M 29.048% $1.85 $20.007M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2024 $59.727M ▼ $4.052B ▲ $2.489B ▲ $1.297B ▲
Q3-2024 $71.948M ▲ $3.961B ▲ $2.46B ▲ $1.237B ▲
Q2-2024 $68.37M ▲ $3.858B ▼ $2.389B ▲ $1.217B ▼
Q1-2024 $64.715M ▼ $3.865B ▲ $2.371B ▲ $1.251B ▼
Q4-2023 $450.477M $3.817B $2.298B $1.327B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2024 $0 ▼ $9.974M ▲ $-70.2M ▼ $49.732M ▲ $-12.22M ▼ $-12.22M ▲
Q3-2024 $31.461M ▲ $-29.227M ▲ $-16.177M ▼ $47.516M ▲ $3.578M ▼ $-44.815M ▲
Q2-2024 $-13.723M ▼ $-35.182M ▼ $46.062M ▲ $-7.196M ▼ $3.655M ▲ $-46.354M ▼
Q1-2024 $2.436M ▲ $-13.201M ▼ $-382.478M ▼ $10.905M ▲ $-385.763M ▼ $-20.948M ▼
Q4-2023 $-59.596M $21.128M $466.212M $-102.236M $385.74M $9M

Revenue by Products

Product Q1-2024Q2-2024Q3-2024Q4-2024
511 Tactical
511 Tactical
 $120.00M ▲$120.00M ▲$140.00M ▲$140.00M ▲
Altor
Altor
 $50.00M ▲$50.00M ▲$50.00M ▲$80.00M ▲
Arnold
Arnold
 $40.00M ▲$40.00M ▲$50.00M ▲$40.00M ▼
BOA
BOA
 $40.00M ▲$50.00M ▲$50.00M ▲$50.00M ▲
Lugano
Lugano
 $100.00M ▲$100.00M ▲$120.00M ▲$150.00M ▲
Primaloft
Primaloft
 $20.00M ▲$30.00M ▲$10.00M ▼$10.00M ▲
Sterno Products
Sterno Products
 $60.00M ▲$70.00M ▲$90.00M ▲$90.00M ▲
The Honey Pot
The Honey Pot
 $520.00M ▲$1.08Bn ▲$1.66Bn ▲$0 ▼
Velocity Outdoor
Velocity Outdoor
 $30.00M ▲$20.00M ▼$30.00M ▲$20.00M ▼
Ergo
Ergo
 $20.00M ▲$30.00M ▲$20.00M ▼$0 ▼

Five-Year Company Overview

Income Statement

Income Statement Compass Diversified has steadily grown its sales over the past few years, and its core business profitability looks stronger than it used to be. Gross and operating margins have generally improved, showing that the portfolio companies are adding value. However, bottom-line earnings have been very inconsistent, swinging between strong profits and very slim results. This suggests that one-off items, financing costs, acquisitions, and write-downs can strongly influence reported net income. In short, the underlying businesses seem healthy, but reported earnings are lumpy and not a smooth trend upward.

Balance Sheet

Balance Sheet The company has built up a larger asset base and slightly more equity over time, reflecting expansion of its portfolio. At the same time, it now relies more heavily on debt than it did a few years ago, so leverage is meaningfully higher. Cash on hand has moved around a lot and most recently is quite low relative to the size of the business, which puts more emphasis on access to credit lines and ongoing cash generation. Overall, the balance sheet shows a scaled, diversified platform, but with a fairly geared capital structure and limited cash cushion that merits attention, especially from preferred security holders.

Cash Flow

Cash Flow Cash generation is more of a weak spot. While earlier years showed decent cash coming in from operations, the last few years have been choppy, with periods of negative operating and free cash flow. That often points to working capital swings, investment in growth, and acquisition-related cash uses. It also means that, in some years, the company has had to lean more on external financing to fund both investments and distributions. For an income-oriented instrument like CODI-PB, the key watchpoint is whether underlying subsidiaries can consistently send cash up to the parent to comfortably cover interest, preferred dividends, and reinvestment needs.

Competitive Edge

Competitive Edge Compass Diversified’s edge comes from its structure and its portfolio. It owns a mix of branded consumer and specialized industrial businesses that tend to be leaders in narrow niches rather than broad, highly commoditized markets. Brands like 5.11 Tactical, BOA, PrimaLoft, Arnold Magnetic Technologies, Ravin crossbows, and The Honey Pot each have strong customer loyalty, specialized know‑how, and in some cases patented technologies. The permanent-capital model lets CODI hold these businesses for the long term, support management teams, and compound value without being forced to sell. On the risk side, running many distinct subsidiaries adds complexity, and the bankruptcy of Lugano shows that individual investments can go wrong even when the rest of the portfolio is performing well. Competition in each niche and the cyclical nature of some end markets remain ongoing challenges.

Innovation and R&D

Innovation and R&D Innovation is a clear strength across the portfolio. Several subsidiaries are technology or product leaders in their fields: BOA with its proprietary fit systems, PrimaLoft with advanced and sustainable insulation materials, Arnold with high-performance magnets, 5.11 with purpose-built tactical gear, Ravin with crossbow technology, and The Honey Pot with plant‑based personal care. These businesses invest in new materials, better designs, and more sustainable processes, which can support pricing power, brand strength, and long product life cycles. CODI’s long-term ownership approach allows these companies to invest patiently in research, product development, and capacity expansions. The flip side is that ongoing innovation requires steady capital and management attention, and not every new initiative will succeed, so execution discipline is important.

Summary

Taken together, Compass Diversified looks like a collection of strong niche businesses sitting inside a financial holding company that uses meaningful leverage. The operating story is generally positive: revenues have grown, margins at the subsidiary level have improved, and many portfolio companies have defensible positions built on brands and proprietary technologies. The financial story is more mixed: earnings are volatile, cash flows have been uneven, and debt levels are elevated relative to equity and cash on hand. The recent bankruptcy of the Lugano subsidiary underlines that even within a diversified portfolio, individual assets can fail and create noise in results. For CODI-PB, what ultimately matters is the group’s ability to keep generating reliable cash from its better-performing subsidiaries and to manage its balance sheet prudently over time, so that preferred dividends and other obligations remain well supported despite periodic setbacks or restructuring events within the portfolio.