CompoSecure, Inc. (CMPO)

CompoSecure, Inc. (CMPO) Industrial Operations Profile

CompoSecure, Inc. designs and manufactures metal and composite cards, including its Arculus cryptocurrency cold storage wallet. Serving financial institutions and government agencies, the company differentiates itself through secure and innovative card solutions in the metal fabrication industry.

What Is the Investment Thesis for CMPO?

CompoSecure presents a notable research candidate within the secure payment and digital asset security sectors. With a market capitalization of $1.68B and a beta of 1.01, the company demonstrates moderate market sensitivity. A key value driver is the increasing demand for secure financial transaction cards and cryptocurrency storage solutions, particularly the Arculus Wallet. The company's growth may be fueled by expanding partnerships with financial institutions and government agencies, as well as increasing adoption of cryptocurrency. However, investors may want to evaluate potential risks such as competition from other security solution providers and fluctuations in cryptocurrency market sentiment. The dividend yield is 0.02%.

Based on FMP financials and quantitative analysis

CMPO Key Highlights

• Market capitalization of $1.68B indicates substantial investor confidence in CompoSecure's market position.
• Beta of 1.01 suggests the stock's volatility is roughly in line with the overall market.
• Dividend yield of 0.02% provides a modest income stream for investors.
• Arculus Cold Storage Wallet represents a significant growth opportunity in the expanding cryptocurrency security market.
• Long-standing history since 1910 demonstrates stability and experience in the security solutions industry.

Who Are CMPO's Competitors?

CMPO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CMPO's Key Strengths?

• Established history and reputation in secure card manufacturing.
• Proprietary Arculus Cold Storage Wallet for cryptocurrency security.
• Strong relationships with financial institutions and government agencies.
• Diverse product portfolio of metal, plastic, and composite cards.

What Are CMPO's Weaknesses?

• Dependence on the financial services industry.
• Potential vulnerability to technological disruptions in payment methods.
• Limited brand recognition outside of the security industry.
• Relatively small dividend yield.

What Could Drive CMPO Stock Higher?

• Increasing adoption of the Arculus Cold Storage Wallet due to rising cryptocurrency investments.
• Expansion of partnerships with financial institutions to integrate secure card technology.
• Securing government contracts for secure identification cards.
• Growth in international markets driving demand for secure payment solutions.

What Are the Key Risks for CMPO?

• Financial-distress signal — its Altman Z-Score of -14.58 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-46.1%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Competition from other security solution providers.
• Cybersecurity threats and data breaches.
• Economic downturns affecting financial institutions.
• Changes in government regulations impacting the security industry.

What Are the Growth Opportunities for CMPO?

• Expansion of Arculus Cold Storage Wallet: The increasing adoption of cryptocurrencies presents a significant growth opportunity for CompoSecure's Arculus Cold Storage Wallet. As more individuals and institutions invest in digital assets, the demand for secure storage solutions will rise. The cryptocurrency wallet market is projected to reach billions of dollars in the coming years, offering substantial revenue potential for CompoSecure. Timeline: Ongoing.
• Partnerships with Financial Institutions: Collaborating with financial institutions to integrate CompoSecure's secure card technology into their payment systems can drive significant growth. Financial institutions are continuously seeking to enhance the security of their payment cards to reduce fraud and improve customer trust. Strategic partnerships can provide CompoSecure with access to a large customer base and recurring revenue streams. Timeline: Ongoing.
• Government Contracts for Secure Identification: Government agencies require secure identification cards for various purposes, including national IDs, employee badges, and access control. CompoSecure's expertise in manufacturing high-security cards positions it well to secure government contracts. These contracts typically involve large volumes and long-term agreements, providing stable revenue for the company. Timeline: Ongoing.
• International Market Expansion: Expanding its geographic presence into new international markets can fuel CompoSecure's growth. Emerging economies are experiencing increasing demand for secure payment solutions and identification cards, presenting untapped opportunities for the company. Adapting its products and services to meet the specific needs of different markets can drive international sales. Timeline: Ongoing.
• Innovation in Card Technology: Continuously innovating and developing new card technologies can provide CompoSecure with a competitive edge. This includes exploring new materials, security features, and functionalities to meet evolving customer needs. Investing in research and development can lead to the creation of proprietary technologies that differentiate CompoSecure from its competitors. Timeline: Ongoing.

What Opportunities Does CMPO Have?

• Expanding adoption of cryptocurrency and digital assets.
• Increasing demand for secure payment solutions.
• Growth in international markets.
• Partnerships with fintech companies.

What Threats Does CMPO Face?

• Competition from established security solution providers.
• Cybersecurity threats and data breaches.
• Economic downturns affecting financial institutions.
• Changes in government regulations.

What Are CMPO's Competitive Advantages?

• Proprietary card manufacturing technologies.
• Strong relationships with financial institutions and government agencies.
• Expertise in high-security card design and production.
• Arculus Cold Storage Wallet provides a unique offering in cryptocurrency security.

What Does CMPO Do?

CompoSecure, Inc., founded in 1910 and headquartered in Somerset, New Jersey, specializes in the design and manufacture of high-security metal, plastic, and composite identification and financial transaction cards. The company's product portfolio includes embedded metal cards, metal veneer lite cards, metal veneer cards, and full metal cards, catering to various security and aesthetic requirements. CompoSecure also offers the Arculus Cold Storage Wallet, a three-factor authentication solution designed for securing cryptocurrency and digital assets. This solution comprises the Arculus Key card, a cold storage hardware device, and the Arculus Wallet mobile App, ensuring the private key remains highly secure. CompoSecure serves a diverse clientele, including financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists, both in the United States and internationally. With over a century of experience, CompoSecure has established itself as a leader in secure card technology and digital asset protection.

What Products and Services Does CMPO Offer?

• Manufactures metal, plastic, and composite ID cards.
• Designs financial transaction cards for secure payments.
• Offers embedded, metal veneer lite, metal veneer, and full metal card products.
• Provides Arculus Cold Storage Wallet for cryptocurrency security.
• Develops three-factor authentication solutions.
• Serves financial institutions, government agencies, and security specialists.

How Does CMPO Make Money?

• Sells secure cards to financial institutions and government agencies.
• Provides cryptocurrency storage solutions to individuals and institutions.
• Generates revenue through product sales and service contracts.
• Focuses on high-security and innovative card technologies.

What Industry Does CMPO Operate In?

CompoSecure operates within the metal fabrication industry, which is experiencing increasing demand for secure payment solutions and digital asset protection. The market for secure cards and cryptocurrency wallets is growing, driven by rising concerns about fraud and cyber threats. CompoSecure competes with companies like Intuitive Machines, Inc. (LUNR), as well as other manufacturers of secure cards and digital security solutions. The industry is characterized by technological innovation and stringent security standards, requiring companies to continuously adapt to evolving threats and customer needs.

Who Are CMPO's Key Customers?

• Financial institutions requiring secure payment cards.
• Government agencies needing secure identification cards.
• Individuals and institutions seeking cryptocurrency storage solutions.
• Plastic card manufacturers integrating secure elements.
• System integrators implementing security solutions.

How CompoSecure, Inc. Is Valued

CompoSecure, Inc. carries a market capitalization of $1.68B, placing it in the small-cap category. Relative to its peer group, CMPO's quantitative score of 45/100 is below the peer average of 55/100.

Company Profile

CompoSecure, Inc. operates in the Manufacturing - Metal Fabrication industry within the Industrials sector. It is headquartered in Somerset, US. The company is led by CEO Jonathan C. Wilk. CMPO has traded publicly since 2020.

ROE -46%Key Financial Metrics

Return on equity for CompoSecure, Inc. stands at -46.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -11.5%, showing how much profit it generates from its asset base. Its free cash flow yield is -1.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.92 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -19.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 2/9Financial Health

CompoSecure, Inc.'s Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -14.58 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project CompoSecure, Inc. revenue of about $491.8M for fiscal 2026, with EPS near $1.09. The estimate reflects 3 contributing analysts.

CMPO Financials

CMPO Latest News

CMPO Analyst Consensus

CMPO MoonshotScore

What Investors Ask About CompoSecure, Inc. (CMPO) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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