Compass Diversified (CODI) (CODI)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Compass Diversified (CODI) (CODI) trades at $10.26 with AI Score 22/100 (Grade F). Compass Diversified is a private equity firm specializing in acquiring and managing middle-market businesses. Market cap: $771.92M, Sector: Industrials.
Price live · AI analysis from May 10, 2026CODI stock analysis for 2026: Analysts have set a consensus price target of $15.00 for Compass Diversified (CODI), suggesting 46.2% upside from the current price of $10.26. The AI MoonshotScore is 22/100, indicating a strong bearish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
CODI: 1/1 perspectives are bearish.
How is this calculated? →Compass Diversified (CODI) (CODI) Industrial Operations Profile
Compass Diversified is a private equity firm focused on acquiring and managing controlling interests in North American niche industrial and branded consumer companies. The firm targets middle-market businesses with strong market positions, aiming to enhance profitability through operational improvements and strategic acquisitions, operating within the broader industrials sector.
What Is the Investment Thesis for CODI?
Compass Diversified presents a unique investment opportunity due to its diversified portfolio of middle-market companies and its focus on niche industrial and branded consumer sectors. The firm's strategy of acquiring controlling interests and implementing operational improvements aims to drive profitability and shareholder value. A key value driver is the potential for organic growth and strategic acquisitions within its portfolio companies. However, the negative profit margin of -12.3% raises concerns about current profitability. Successful execution of its acquisition and management strategies, coupled with improved financial performance across its portfolio, are crucial for realizing long-term value. Investors should monitor EBITDA growth and margin expansion as key indicators of success.
Based on FMP financials and quantitative analysis
CODI Key Highlights
- Market capitalization of $771.92M reflects the firm's current valuation in the public market.
- Gross margin of 43.7% indicates the profitability of the firm's portfolio companies before operating expenses.
- Beta of 0.98 suggests that the stock's volatility is similar to the overall market.
- Focus on companies with EBITDA between $15 million and $80 million indicates the target size for acquisitions.
- The firm's investment horizon of five to seven years allows for long-term value creation through operational improvements and strategic initiatives.
Who Are CODI's Competitors?
CODI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BX Blackstone Inc. | $123.97 | +0.97% | $148.92B | 60 |
| KKR KKR & Co. Inc. | $96.66 | +3.01% | $86.79B | 44 |
| APO Apollo Global Management, Inc. | $122.17 | +3.00% | 71B | 48 |
| CRESY Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria | $11.05 | +0.36% | $716.86M | 64 |
| RSDEF Ramsdens Holdings PLC | $2.39 | +0.00% | $78.15M | 59 |
| MPCFF Metro Pacific Investments Corporation | $0.05 | +0.00% | $1.43B | 58 |
| FIP FTAI Infrastructure Inc. | $4.43 | -0.23% | $523.46M | 57 |
| UMCN UMC, Inc. | $0.06 | -0.17% | $39.36M | 48 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CODI's Key Strengths?
- Diversified portfolio of middle-market companies.
- Proven track record of acquiring and managing businesses.
- Operational expertise to improve portfolio company performance.
- Strong focus on niche industrial and branded consumer sectors.
What Are CODI's Weaknesses?
- Negative profit margin raises concerns about current profitability.
- Reliance on the performance of its portfolio companies.
- Exposure to economic cycles and industry-specific risks.
- Potential challenges in integrating and managing diverse businesses.
What Could Drive CODI Stock Higher?
- Potential acquisitions of new portfolio companies to expand the firm's market presence.
- Continued operational improvements within existing portfolio companies to enhance profitability.
- Strategic initiatives to drive organic growth and increase shareholder value.
- Favorable economic conditions supporting growth in the industrial and consumer sectors.
What Are the Key Risks for CODI?
- Financial-distress signal — its Altman Z-Score of 0.29 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-46.3%) — the business is not currently generating profit on shareholder capital.
- Economic downturns impacting portfolio company performance and valuations.
- Increased competition in the private equity market driving up acquisition costs.
- Rising interest rates increasing borrowing costs and reducing investment returns.
- Regulatory changes affecting portfolio company operations and compliance requirements.
What Are the Growth Opportunities for CODI?
- Strategic Acquisitions: Compass Diversified can drive growth through strategic acquisitions of complementary businesses within its existing portfolio or by entering new, attractive markets. The firm's experience in identifying and integrating acquisitions positions it well to capitalize on opportunities to expand its market presence and enhance its competitive advantage. The middle market M&A activity is expected to continue, providing ample opportunities for CODI to deploy capital effectively. Timeline: Ongoing.
- Operational Improvements: By implementing operational improvements within its portfolio companies, Compass Diversified can enhance efficiency, reduce costs, and increase profitability. This includes initiatives such as streamlining processes, optimizing supply chains, and leveraging technology to improve productivity. These improvements can drive organic growth and increase the value of the firm's investments. Timeline: Ongoing.
- Expansion into New Geographies: Compass Diversified can expand its geographic footprint by acquiring or investing in companies with operations in new regions. This would allow the firm to diversify its revenue streams and reduce its reliance on any single market. Focus on North America currently, expansion into other developed markets could be considered. Timeline: 3-5 years.
- Product Innovation: Encouraging product innovation within its portfolio companies can drive growth by creating new revenue streams and attracting new customers. This includes investing in research and development, developing new products and services, and leveraging emerging technologies to meet evolving customer needs. Timeline: Ongoing.
- E-commerce Expansion: Compass Diversified can drive growth by expanding the e-commerce capabilities of its portfolio companies. This includes investing in online sales channels, improving digital marketing efforts, and enhancing the online customer experience. The increasing shift towards online shopping presents a significant opportunity for the firm to reach a wider audience and increase sales. Timeline: Ongoing.
What Opportunities Does CODI Have?
- Strategic acquisitions to expand market presence.
- Operational improvements to enhance profitability.
- Expansion into new geographies and markets.
- Product innovation and e-commerce expansion within portfolio companies.
What Threats Does CODI Face?
- Economic downturns impacting portfolio company performance.
- Increased competition in the private equity market.
- Rising interest rates increasing borrowing costs.
- Regulatory changes affecting portfolio company operations.
What Are CODI's Competitive Advantages?
- Diversified portfolio reduces risk compared to single-industry focused firms.
- Operational expertise to improve acquired companies' performance.
- Established track record in acquiring and managing middle-market businesses.
- Access to capital for strategic acquisitions and investments.
What Does CODI Do?
Founded in 2005, Compass Diversified is a private equity firm headquartered in Westport, Connecticut, with an additional office in Costa Mesa, California. The firm specializes in add-on acquisitions, buyouts, industry consolidation, recapitalization, and late-stage investments in middle-market companies. Compass Diversified targets niche industrial or branded consumer businesses across various sectors, including manufacturing, distribution, consumer products, business services, safety & security, electronic components, food, and foodservice. The firm seeks to invest between $100 million and $800 million in companies with an EBITDA between $15 million and $80 million, primarily focusing on North American-based businesses. Compass Diversified aims to acquire controlling ownership interests in its portfolio companies, often holding investments for five to seven years. The firm operates by providing capital and resources to its subsidiaries while allowing them to maintain independent operations, driving value through strategic guidance and operational improvements.
What Products and Services Does CODI Offer?
- Acquires controlling ownership interests in middle-market companies.
- Focuses on niche industrial and branded consumer sectors.
- Provides capital and resources to its portfolio companies.
- Implements operational improvements to enhance profitability.
- Manages a diverse portfolio of businesses across various industries.
- Targets companies with strong market positions and growth potential.
- Seeks to create long-term value through strategic guidance and operational expertise.
How Does CODI Make Money?
- Acquires controlling stakes in established middle-market companies.
- Generates revenue through the performance of its portfolio companies.
- Improves operational efficiency and profitability of acquired businesses.
- Realizes returns through strategic exits, such as sales or IPOs.
What Industry Does CODI Operate In?
Compass Diversified operates within the industrials sector, specifically in the conglomerates industry. This sector is characterized by companies that own and manage a diverse range of businesses across various industries. The competitive landscape includes other private equity firms and holding companies that focus on acquiring and managing middle-market businesses. The firm's focus on niche industrial and branded consumer companies differentiates it from competitors with broader investment mandates. Market trends include increasing demand for specialized industrial products and growing consumer preferences for branded goods, which could drive growth for Compass Diversified's portfolio companies.
Who Are CODI's Key Customers?
- Niche industrial companies seeking capital and operational expertise.
- Branded consumer companies looking for strategic guidance and resources.
- Middle-market businesses with growth potential.
- Companies seeking to improve operational efficiency and profitability.
FY2026 estForward Outlook
Wall Street analysts project Compass Diversified (CODI) revenue of about $1.71B for fiscal 2026, with EPS near $0.28. The estimate reflects 5 contributing analysts.
Quarterly Financial Performance: Compass Diversified (CODI)
Revenue for Compass Diversified (CODI) came in at $426.9M during Q1 2026, a 8.9% contraction versus the preceding quarter. The company recorded a net loss of $30.8M, with diluted EPS of $-0.62. Revenue has contracted over three consecutive quarters, which investors in this small-cap Industrials stock should monitor closely. Across the four most recent quarters, CODI averaged $-0.95 in diluted EPS.
CODI Valuation & Market Position
With a $771.92M market cap, Compass Diversified (CODI) sits in the small-cap segment of the market. Relative to its peer group, CODI's quantitative score of 22/100 is below the peer average of 55/100.
ROE -46%Key Financial Metrics
Return on equity for Compass Diversified (CODI) stands at -46.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -7.7%, showing how much profit it generates from its asset base. Its free cash flow yield is 1.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.67 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -28.4%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
Compass Diversified (CODI)'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.29 places it in the distress zone, a signal of elevated financial risk.
Company Profile
Compass Diversified (CODI) operates in the Conglomerates industry within the Industrials sector. It is headquartered in Westport, US. The company is led by CEO Elias Joseph Sabo. CODI has traded publicly since 2006.
CODI Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying indicates strong confidence in CODI's future performance, suggesting that management sees potential for growth.
- Community sentiment has shifted positively, with discussions highlighting CODI's diversified portfolio as a strength during economic uncertainty.
- Investors are increasingly recognizing the value of CODI's unique business model, which offers stability in volatile markets.
- Recent positive news coverage has enhanced market perception, with analysts praising CODI's strategic acquisitions.
Bear Case
- Concerns about rising interest rates may impact CODI's ability to finance its operations, leading to cautious sentiment among some investors.
- Recent bearish commentary from community members suggests skepticism about the sustainability of CODI's recent growth.
- Market analysts have raised questions about CODI's exposure to cyclical industries, which could be vulnerable in an economic downturn.
- Some investors express worries about the company's debt levels, fearing they could hinder future expansion efforts.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $427M | -$31M | -$0.62 |
| Q4 2025 | $469M | -$71M | -$1.10 |
| Q3 2025 | $473M | -$74M | -$1.21 |
| Q2 2025 | $479M | -$51M | -$0.88 |
Based on FMP financials and quantitative analysis
CODI Latest News
No recent news available for CODI.
CODI Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CODI.
Price Targets
Consensus target: $15.00
CODI MoonshotScore
What does this score mean?
The MoonshotScore rates CODI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry ConglomeratesLeadership: Elias Joseph Sabo
Managing Director
Elias Joseph Sabo serves as a Managing Director at Compass Diversified. His background includes extensive experience in private equity, mergers and acquisitions, and corporate finance. Prior to joining Compass Diversified, he held various leadership positions in investment firms, where he focused on identifying and executing investment opportunities in middle-market companies. He holds degrees in finance and business administration.
Track Record: Under Elias Joseph Sabo's leadership, Compass Diversified has continued to execute its strategy of acquiring and managing controlling interests in niche industrial and branded consumer companies. Key achievements include the successful integration of acquired businesses and the implementation of operational improvements that have enhanced profitability. He has overseen strategic decisions related to portfolio allocation and capital deployment.
What Investors Ask About Compass Diversified (CODI) (CODI) — Industrials
What does Compass Diversified do?
Compass Diversified is a private equity firm that acquires and manages a diverse portfolio of middle-market businesses in niche industrial and branded consumer sectors. The firm focuses on North American companies with strong market positions and growth potential. CODI operates as a holding company, providing capital and resources to its subsidiaries while allowing them to maintain independent operations. The goal is to increase profitability and shareholder value through operational improvements and strategic acquisitions, generating revenue through the performance of its portfolio companies and strategic exits.
What do analysts say about CODI stock?
Analyst coverage of Compass Diversified typically focuses on the firm's ability to identify and acquire attractive middle-market businesses, as well as its operational expertise in improving the performance of its portfolio companies. Key valuation metrics include price-to-earnings ratio, enterprise value-to-EBITDA, and dividend yield (if applicable). Growth considerations include the firm's ability to execute strategic acquisitions, drive organic growth within its portfolio companies, and manage its capital structure effectively. The negative profit margin may raise concerns.
What are the main risks for CODI?
The main risks for Compass Diversified include economic downturns impacting the performance of its portfolio companies, increased competition in the private equity market driving up acquisition costs, and rising interest rates increasing borrowing costs. Additionally, regulatory changes affecting portfolio company operations and compliance requirements pose potential risks. The firm's reliance on the performance of its portfolio companies and its exposure to industry-specific risks also warrant consideration. The negative profit margin is a significant risk factor.
What are the key factors to evaluate for CODI?
Compass Diversified (CODI) (CODI) holds an AI score of 22/100 (low). Analysts target $15.00 (+46%). Not financial advice.
How frequently does CODI data refresh on this page?
CODI prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CODI's recent stock price performance?
Compass Diversified (CODI) (CODI) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified portfolio of middle-market companies. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CODI overvalued or undervalued right now?
Valuing Compass Diversified (CODI) (CODI) requires multiple metrics. Analysts target $15.00 (+46%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CODI?
Before investing in Compass Diversified (CODI) (CODI), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available sources and may be subject to change.
- Financial data is as of the most recent reporting period.