Compass Diversified (CODI) Stock

Compass Diversified (CODI) is a Consumer Discretionary stock trading at $11.68 (as of 2026-08-21), with a market capitalization of $878.76M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Compass Diversified is an investment firm that makes late-stage, middle-market investments and add-on acquisitions, including buyouts and industry consolidation, using its balance sheet. It seeks controlling interests (often majority stakes) in North America-based niche industrial or branded consumer companies, typically in sectors such as manufacturing, distribution, safety and security, and food-related businesses.

Understand Compass Diversified: how it makes money

Compass Diversified is a private equity firm that invests in and acquires controlling interests in niche industrial and branded consumer companies, and grows them through add on acquisitions and industry consolidation.

The profit engine is built around owning controlling stakes in niche industrial and branded consumer businesses, then extending value through add-on acquisitions and industry consolidation.

Revenue by segment (latest quarter)
Branded Cons.	$0.3B
Industrial	$0.2B

Business quality (Weak): Clear stated strategy (controlling investments plus consolidation and add-ons), but the latest period shows a slightly negative operating margin, and the provided operating KPIs are not comprehensive for all parts of the portfolio.

Bull case

Focused investment mandate: The firm seeks niche industrial or branded consumer companies in North America and emphasizes add on acquisitions and industry consolidation.
Gross profit present, even with operating pressure: Latest gross margin is 44.4%, which indicates gross profitability while operating margin is slightly negative.
Multiple revenue streams in the reported breakdown: Branded Consumer net revenues are 0.26B and Industrial net revenues are 0.17B, suggesting more than one business exposure.

Bear case

Latest period operating profitability is negative: Operating margin is -0.5% for the period ended 2026-03-31, indicating operating costs exceeded operating gross profit in that period.
Execution risk inherent in add on consolidation: Because the strategy relies on add on acquisitions and consolidating industries, results can be sensitive to acquisition execution and integration outcomes in underlying portfolio companies.
Concentration to middle market deal profile: The firm targets investments between $100 million and $800 million in companies with EBITDA between $15 million and $80 million, which can concentrate risk in that specific size and profitability range.

Valuation — source: SEC EDGAR (first-party)
Price	$11.68
Market Cap	$878.76M
EV / EBITDA	11.6
Price / Book	1.45
Price / Sales	0.49
FCF Yield	9.1%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.87B
Net Margin	-12.1%
Revenue Growth (YoY)	-11.4%
FCF Growth (YoY)	-151.0%

Financial Health — source: SEC EDGAR
Altman Z-Score	0.44 (distress)
Piotroski F-Score	5/9 (moderate)

Valuation vs Sector & Industry
Sector P/E (Consumer Discretionary)	20.7
Industry P/E (Consumer Goods)	22.1

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	AMERICAN CENTURY COMPANIES INC ($39.50M)
Institutional Holders Tracked	10

Company
Sector	Consumer Discretionary
Industry	Consumer Goods
CEO	Elias Joseph Sabo
Employees	3,340
Country	US
IPO Date	2006-05-18

Related Companies (Business model: Branded Consumer (CPG, Staples, Beauty, Alcohol, Pet, Nicotine); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.