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Compass Diversified Holdings

Compass Diversified Holdings

CODI
$10.33USD↓-1.24%-0.13 today

MARKET CAP

777.2M

P/E (TTM)

45.9x

FWD P/E

33.8x

DAY RANGE

$10 – $11

52W RANGE

$5
$13

AI Summary

Stalk
StalkMedium

CODI’s recent momentum breakout places it in a Stage 2 advancing phase with rising EMAs and an upsloping 50-day MA. Although price is currently extended above the EMAs and resistance was just cleared, oversold upstream readings and strong intermediate structure favor a pullback entry. Execution is deferred, stalking for a retracement into the rising EMA and prior resistance zone near 10.5–10.7 for optimal timing.

  • ↑Consumer brands: Honeypot revenue +25% and EBITDA +40% YoY.
  • ↑Sterno divestiture freed $280M to repay debt; leverage now ~5.3x.
  • ↓Profitability score negative and earnings yield below zero flag weak returns.
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The case for & against

Bull & Bear analysis

Bearish

Compass Diversified Holdings (NYSE: CODI) is a diversified holding company that focuses on acquiring and managing category-leading companies primarily in consumer and industrial sectors. They are positioned as an active player in optimally managing a wide range of investments with an emphasis on long-term value creation, strategic operations, acquisitions, and divestitures. These investments allow CODI to navigate through diverse economic conditions, utilizing a strong management framework to maximize the intrinsic value of their holdings.

Bull says

  • ↑Consumer brands: Honeypot revenue +25% and EBITDA +40% YoY.
  • ↑Sterno divestiture freed $280M to repay debt; leverage now ~5.3x.
  • ↑Institutional stakes rose to 80.5%, signaling strong investor confidence.
  • ↑Generated $23.9M operating cash flow, underpinning subsidiary performance.
  • ↑High analyst revisions score indicates rising earnings forecasts.
  • ↑Favorable liquidity factor suggests solid trading conditions.

Bear says

  • ↓Profitability score negative and earnings yield below zero flag weak returns.
  • ↓Leverage at ~5.3x could constrain growth in a rising‐rate environment.
  • ↓Revenue down 5.9% YoY and growth factor negative risk stagnation.
  • ↓Geopolitical supply‐chain risks and China export restrictions add uncertainty.
  • ↓13F ownership declines reflect waning institutional confidence.
  • ↓Size factor suggests scale inefficiencies may hamper operations.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-12-2026neutral

Transcript signals

Bull points

  • we generated $23.9 million in operating cash flow, a meaningful improvement versus the prior year.
  • For the full year, we expect subsidiary adjusted EBITDA of between $320 to $365 million. This range, adjusted for the impact of the sale of Sterno's food service business, is at or above the expectation we set at the start of the year and reflects the continued strength of our diversified collection of businesses.
  • We delivered solid subsidiary-adjusted EBITDA growth, highlighted by double-digit growth in our consumer businesses, despite uncertainty in the global economy.

Bear points

  • For the first quarter, GAAP net revenues were $427 million, down 5.9% year-over-year, due to the inclusion of Lugano in the prior period. GAAP net loss from continuing operations was $30.8 million, an improvement of approximately $19 million year-over-year, primarily reflecting the absence of Lugano's losses in the current period.
  • we do have a couple of negotiations with some long-term – with some large customers in that particular business that we think will be a little bit of a headwind for the year.
  • we do have a couple of negotiations with some long-term – with some large customers in that particular business that we think will be a little bit of a headwind for the year.
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