Compass Diversified Holdings Shares of Beneficial Interest (CODI) Company Bio
Compass Diversified Holdings is a private equity firm specializing in acquisitions, buyouts, and middle market investments. The company was founded in 2005 and is based in Westport, Connecticut.
CODI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CODI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Compass Diversified Holdings ranked in the 60th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 68.83%. The most interesting components of our discounted cash flow analysis for Compass Diversified Holdings ended up being:
The business' balance sheet reveals debt to be 32% of the company's capital (with equity being the remaining amount). Approximately 59.48% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Compass Diversified Holdings's effective tax rate, as measured by taxes paid relative to net income, is at 15 -- greater than 58.57% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 9. This value is greater than 57.71% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CODI, try MNTX, KSU, OMAB, AEGN, and MLHR.
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Introduction Headquartered in Westport, CT, Compass Diversified Holdings (CODI) owns controlling interests in North American-based, middle market businesses. The investment team primarily focuses on identifying targets in the consumer and industrial market segments. CODI’s strategy is to acquire, grow, and eventually divest companies which: maintain leadership positions in attractive market...
Hemlock Partners on Seeking Alpha | August 28, 2020
Compass Diversified Holdings (CODI) operates as a private equity firm that does acquisitions, buyouts, recapitalizations, etc., to gain and maintain a portfolio of diverse businesses. Compass's collection of businesses are typically in stable industries. However, COVID-19 did negatively affect some of these businesses. The good news is that some of...
Shares of Compass Diversified Hldgs (NYSE:CODI) were unchanged after the company reported Q2 results.Quarterly Results Earnings per share increased 6.25% over the past year to ($0.30), which missed the estimate of $0.06.Revenue of $333,627,000 decreased by 0.73% year over year, which beat the estimate of $281,300,000.Looking Ahead Compass Diversified Hldgs hasn't issued any earnings guidance for the time being.Compass Diversified Hldgs hasn't issued any revenue guidance for the time being.How To Listen To The Conference Call Date: Jul 29, 2020View more earnings on CODITime: 05:00 PMET Webcast URL: https://edge.media-server.com/mmc/p/kiskq4j7Technicals 52-week high: $26.37Company's 52-week low was at $10.78Price action over last quarter: down 10.92%Company Description Compass...