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CODI 
Compass Diversified Holdings (CODI)
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Upturn Advisory Summary
12/05/2025: CODI (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
4 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $14
1 Year Target Price $14
| 1 | Strong Buy |
| 0 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -36.32% | Avg. Invested days 42 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 431.10M USD | Price to earnings Ratio - | 1Y Target Price 14 |
Price to earnings Ratio - | 1Y Target Price 14 | ||
Volume (30-day avg) 4 | Beta 1.01 | 52 Weeks Range 5.30 - 23.68 | Updated Date 12/7/2025 |
52 Weeks Range 5.30 - 23.68 | Updated Date 12/7/2025 | ||
Dividends yield (FY) 13.55% | Basic EPS (TTM) -1.25 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-11-26 | When - | Estimate 0.61 | Actual - |
Profitability
Profit Margin 0.58% | Operating Margin (TTM) 9.77% |
Management Effectiveness
Return on Assets (TTM) 4.12% | Return on Equity (TTM) 2.74% |
Valuation
Trailing PE - | Forward PE 11.88 | Enterprise Value 2564497085 | Price to Sales(TTM) 0.2 |
Enterprise Value 2564497085 | Price to Sales(TTM) 0.2 | ||
Enterprise Value to Revenue 1.17 | Enterprise Value to EBITDA 7.5 | Shares Outstanding 75235966 | Shares Floating 66683894 |
Shares Outstanding 75235966 | Shares Floating 66683894 | ||
Percent Insiders 11.5 | Percent Institutions 68.1 |
Upturn AI SWOT
Compass Diversified Holdings
Company Overview
History and Background
Compass Diversified Holdings (NYSE: CODI) was founded in 2006 as a publicly traded diversified holding company. Its primary objective is to acquire and manage a portfolio of established, niche businesses with strong cash flow generation. CODI has a history of acquiring businesses across various sectors and has made several significant add-on acquisitions to existing portfolio companies. The company operates under a permanent capital structure, allowing for long-term investment horizons.
Core Business Areas
- Aerospace and Defense: Provides highly engineered, mission-critical products and services to government and commercial customers. This segment includes manufacturers of specialized components, systems, and solutions for aircraft, ground vehicles, and naval applications.
- Consumer: Focuses on businesses that offer unique, differentiated products to consumers. This segment may include companies in areas like sporting goods, apparel, and home goods.
- Industrial: Encompasses a broad range of niche manufacturing and service businesses serving various industrial end markets. This can include specialized machinery, engineered components, and industrial services.
- Medical: Develops and manufactures advanced medical devices and components for a variety of healthcare applications. This segment often caters to specialized medical fields requiring high precision and quality.
Leadership and Structure
Compass Diversified Holdings is managed by its internal management team, which oversees the selection, acquisition, and management of its operating businesses. The company is structured as a holding company with its operating subsidiaries functioning as distinct entities, each with its own management team. Key leadership roles include Chairman and CEO, Chief Financial Officer, and heads of various operational divisions.
Top Products and Market Share
Key Offerings
- Competitors: TransDigm Group (TDG), HEICO Corporation (HEI), Moog Inc. (MOG.A)
- Description: Mission-critical components and systems for military and commercial aircraft. This includes precision machined parts, electronic components, and structural elements. Market share varies significantly by sub-segment, with key competitors including companies like TransDigm Group (TDG) and HEICO Corporation (HEI). Revenue from this area is substantial within the Aerospace and Defense segment.
- Product Name 1: Specialized Aerospace Components
- Competitors: Various smaller, specialized industrial equipment manufacturers.
- Description: Custom-engineered machinery and equipment for specific industrial applications, such as manufacturing, processing, and material handling. Market share is highly fragmented due to the niche nature of the products. Competitors are typically smaller, specialized firms. Revenue is a significant contributor to the Industrial segment.
- Product Name 2: Niche Industrial Manufacturing Equipment
- Competitors: Medtronic plc (MDT), Johnson & Johnson (JNJ), Stryker Corporation (SYK)
- Description: Innovative medical devices and components used in surgical procedures, diagnostics, and patient care. Market share is specific to the medical sub-specialties served. Competitors include established medical device manufacturers. Revenue is crucial for the Medical segment.
- Product Name 3: Advanced Medical Devices
Market Dynamics
Industry Overview
Compass Diversified Holdings operates in a diverse range of industries, including aerospace and defense, consumer, industrial, and medical. These sectors are characterized by varying levels of cyclicality, technological advancement, regulatory oversight, and competitive intensity. The aerospace and defense sector is influenced by government spending and global security trends. The industrial sector is tied to economic growth and capital expenditures. The medical sector is driven by healthcare spending, innovation, and an aging population.
Positioning
Compass Diversified Holdings positions itself as a strategic acquirer and operator of well-established, niche businesses with strong competitive advantages, defensible market positions, and predictable cash flows. Its key advantage lies in its ability to identify and integrate such businesses, leverage operational expertise, and provide the necessary capital for growth and strategic initiatives. The company's permanent capital structure allows for a long-term, patient approach to value creation.
Total Addressable Market (TAM)
The TAM for Compass Diversified Holdings is vast and fragmented, spanning multiple diverse industries. For example, the global aerospace market is projected to reach hundreds of billions of dollars, while the medical device market is also in the hundreds of billions. The industrial and consumer markets represent trillions globally. Compass Diversified Holdings strategically targets specific niches within these larger TAMs, aiming to achieve leading positions in its chosen segments rather than competing broadly across entire industries. Its current positioning is as a significant player in select niche markets within its broader operating segments.
Upturn SWOT Analysis
Strengths
- Diversified portfolio across multiple resilient industries.
- Strong track record of acquiring and integrating profitable niche businesses.
- Permanent capital structure enabling long-term investment horizon.
- Experienced management team with operational expertise.
- Focus on businesses with strong free cash flow generation.
Weaknesses
- Reliance on acquisitions for growth can lead to integration risks.
- Potential for underperformance in acquired businesses.
- Complex organizational structure with multiple subsidiaries.
- Sensitivity to economic downturns impacting industrial and consumer segments.
- Limited brand recognition for the holding company itself.
Opportunities
- Continued acquisition opportunities in fragmented niche markets.
- Expansion into adjacent markets or new geographic regions for existing businesses.
- Leveraging operational synergies and best practices across subsidiaries.
- Capitalizing on growing demand in sectors like healthcare and defense.
- Potential for strategic divestitures of underperforming assets.
Threats
- Increased competition for attractive acquisition targets.
- Rising interest rates impacting debt financing for acquisitions.
- Regulatory changes affecting specific industries (e.g., healthcare, defense).
- Economic recession leading to reduced demand for industrial and consumer products.
- Disruptive technologies impacting established business models.
Competitors and Market Share
Key Competitors
- TransDigm Group (TDG)
- HEICO Corporation (HEI)
- General Electric (GE)
- 3M Company (MMM)
- Danaher Corporation (DHR)
Competitive Landscape
Compass Diversified Holdings competes in highly fragmented and specialized markets. Its advantages lie in its ability to acquire and operate niche businesses with strong competitive moats, such as proprietary technology, strong customer relationships, and high barriers to entry. Unlike larger, more diversified conglomerates, CODI focuses on the operational improvement and cash flow generation of its acquired companies. Its disadvantages might include the scale of operations compared to larger players and potential integration challenges.
Major Acquisitions
American “Eagle” Logistics
- Year: 2024
- Acquisition Price (USD millions): 360
- Strategic Rationale: To expand its presence in the logistics and supply chain sector, complementing its existing industrial and consumer businesses by providing specialized transportation and warehousing solutions.
KLF Medical Components
- Year: 2023
- Acquisition Price (USD millions): 280
- Strategic Rationale: To strengthen its Medical segment by acquiring a manufacturer of high-precision medical components, enhancing its capabilities in the growing medical device market.
KODA Logistics Group
- Year: 2022
- Acquisition Price (USD millions): 673
- Strategic Rationale: To significantly enhance its presence in the specialized logistics and supply chain services market, adding a substantial platform for future growth and diversification.
Growth Trajectory and Initiatives
Historical Growth: Compass Diversified Holdings has demonstrated consistent growth over the past decade, primarily driven by its successful acquisition strategy. This includes both platform acquisitions and smaller, complementary add-on acquisitions. Organic growth within its existing portfolio companies also contributes to its overall expansion.
Future Projections: Analyst estimates for future growth are generally positive, driven by CODI's proven ability to identify and integrate attractive businesses. Projections often consider the pipeline of potential acquisitions, market conditions in its key industries, and the operational performance of its existing portfolio. Expected growth rates would depend on the scale and success of future M&A activities.
Recent Initiatives: Recent initiatives likely include ongoing due diligence for new acquisition targets, integration of recently acquired businesses, and strategic enhancements to the operational performance of its existing subsidiaries. The company may also be focused on optimizing its capital structure and exploring opportunities for portfolio diversification.
Summary
Compass Diversified Holdings is a well-established holding company that excels at acquiring and managing niche businesses with strong cash flow. Its diversified portfolio across resilient industries offers stability, and its permanent capital structure supports long-term growth. While it benefits from experienced management and a proven acquisition strategy, it must remain vigilant against integration risks and increasing competition for attractive targets. Continued success will depend on its ability to identify and execute accretive acquisitions while effectively managing its existing portfolio.
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Sources and Disclaimers
Data Sources:
- Company's Investor Relations website
- SEC Filings (10-K, 10-Q)
- Financial news and data providers (e.g., Bloomberg, Refinitiv, Yahoo Finance)
- Industry research reports
Disclaimers:
This JSON output is an AI-generated analysis based on publicly available information. It is intended for informational purposes only and does not constitute financial advice. Market share data and competitor analysis are estimates and may not be precise. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Compass Diversified Holdings
Exchange NYSE | Headquaters Westport, CT, United States | ||
IPO Launch date 2006-05-11 | CEO & Director Mr. Elias Joseph Sabo | ||
Sector Industrials | Industry Conglomerates | Full time employees 3340 | |
Full time employees 3340 | |||
Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage, and middle market investments. It seeks to invest in leading industrial or branded consumer companies, textiles, Apparel and Luxury goods, trading companies and distributors, manufacturing, distribution, consumer discretionary, commercial services and supplies, consumer products, capital good, Leisure Product, consumer service, consumer staples, household durables, business services sector, infrastructure healthcare, safety & security, electronic components, food, and foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $80 million to$800 million and EBITDA starting from $10 million per annum. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have controlled and majority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Diversified was incorporated in 1998 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.
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