Compass Diversified (CODI)
Market Price (7/17/2026): $10.47 | Market Cap: $787.7 MilSector: Industrials | Industry: Industrial Conglomerates
Compass Diversified (CODI)
Market Price (7/17/2026): $10.47Market Cap: $787.7 MilSector: IndustrialsIndustry: Industrial Conglomerates
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldDividend Yield is 2.4% Megatrend and thematic driversMegatrends include Digital & Alternative Assets. Themes include Private Equity. | Weak multi-year price returns2Y Excs Rtn is -86%, 3Y Excs Rtn is -117% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 229% Weak revenue growthRev Chg QQuarterly Revenue Change % is -5.9% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 121% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -31% Key risksCODI key risks include [1] widespread accounting fraud at a key subsidiary necessitating a multi-year financial restatement, Show more. |
| Attractive yieldDividend Yield is 2.4% |
| Megatrend and thematic driversMegatrends include Digital & Alternative Assets. Themes include Private Equity. |
| Weak multi-year price returns2Y Excs Rtn is -86%, 3Y Excs Rtn is -117% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 229% |
| Weak revenue growthRev Chg QQuarterly Revenue Change % is -5.9% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 121% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -31% |
| Key risksCODI key risks include [1] widespread accounting fraud at a key subsidiary necessitating a multi-year financial restatement, Show more. |
Qualitative Assessment
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Compass Diversified (CODI) stock has gained about 35% since 3/31/2026 because of the following key factors:
1. Strong Fiscal Q1 2026 Earnings Beat Fueled Investor Confidence. Compass Diversified reported its fiscal Q1 2026 earnings on May 6, 2026, with an Earnings Per Share (EPS) of $0.08. This significantly surpassed analysts' consensus estimate of -$0.08 by 197.50%, indicating a substantial earnings beat. This positive financial surprise contributed to a 3.5% stock gain the day after the announcement.
2. Strategic Divestiture Strengthened the Balance Sheet and Reduced Leverage. The company completed the sale of Sterno's food service business on May 1, 2026, for an enterprise value of $292.5 million, generating approximately $280 million in proceeds. This strategic divestiture was projected to reduce Compass Diversified's senior secured net leverage ratio to below 1.0x by the end of fiscal Q2 2026 (June 30, 2026), significantly improving its financial health and flexibility.
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Compass Diversified (CODI) stock has gained about 35% since 3/31/2026 because of the following key factors:
1. Strong Fiscal Q1 2026 Earnings Beat Fueled Investor Confidence. Compass Diversified reported its fiscal Q1 2026 earnings on May 6, 2026, with an Earnings Per Share (EPS) of $0.08. This significantly surpassed analysts' consensus estimate of -$0.08 by 197.50%, indicating a substantial earnings beat. This positive financial surprise contributed to a 3.5% stock gain the day after the announcement.
2. Strategic Divestiture Strengthened the Balance Sheet and Reduced Leverage. The company completed the sale of Sterno's food service business on May 1, 2026, for an enterprise value of $292.5 million, generating approximately $280 million in proceeds. This strategic divestiture was projected to reduce Compass Diversified's senior secured net leverage ratio to below 1.0x by the end of fiscal Q2 2026 (June 30, 2026), significantly improving its financial health and flexibility.
3. Corporate Governance Improvements and Shareholder Alignment Initiatives. Compass Diversified announced a CEO succession plan on June 11, 2026, ensuring a smooth transition of leadership. Furthermore, on July 13, 2026, the company disclosed amendments to its Management Services Agreement aimed at reducing management costs and enhancing alignment with shareholder interests, signaling a commitment to optimizing operational efficiency and returns.
4. Activist Investor Pressure for Enhanced Shareholder Value. On July 16, 2026, ADW Capital Management, a significant shareholder holding approximately 19.3% of the company's shares and options, publicly urged Compass Diversified's board to initiate a strategic review process and consider an orderly liquidation. This activist involvement generated speculation about potential actions to unlock substantial shareholder value, with ADW Capital's analysis suggesting a potential realization of $50 to $60 per share through asset sales and buybacks.
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Stock Movement Drivers
Fundamental Drivers
The 33.1% change in CODI stock from 3/31/2026 to 7/16/2026 was primarily driven by a 35.0% change in the company's P/S Multiple.| (LTM values as of) | 3312026 | 7162026 | Change |
|---|---|---|---|
| Stock Price ($) | 7.86 | 10.46 | 33.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,874 | 1,847 | -1.4% |
| P/S Multiple | 0.3 | 0.4 | 35.0% |
| Shares Outstanding (Mil) | 75 | 75 | 0.0% |
| Cumulative Contribution | 33.1% |
Market Drivers
3/31/2026 to 7/16/2026| Return | Correlation | |
|---|---|---|
| CODI | 33.1% | |
| Market (SPY) | 15.4% | -5.3% |
| Sector (XLI) | 11.4% | -13.0% |
Fundamental Drivers
The 117.9% change in CODI stock from 12/31/2025 to 7/16/2026 was primarily driven by a 122.2% change in the company's P/S Multiple.| (LTM values as of) | 12312025 | 7162026 | Change |
|---|---|---|---|
| Stock Price ($) | 4.80 | 10.46 | 117.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,883 | 1,847 | -1.9% |
| P/S Multiple | 0.2 | 0.4 | 122.2% |
| Shares Outstanding (Mil) | 75 | 75 | 0.0% |
| Cumulative Contribution | 117.9% |
Market Drivers
12/31/2025 to 7/16/2026| Return | Correlation | |
|---|---|---|
| CODI | 117.9% | |
| Market (SPY) | 10.4% | 17.7% |
| Sector (XLI) | 16.5% | 8.2% |
Fundamental Drivers
The 66.6% change in CODI stock from 6/30/2025 to 7/16/2026 was primarily driven by a 60.7% change in the company's P/S Multiple.| (LTM values as of) | 6302025 | 7162026 | Change |
|---|---|---|---|
| Stock Price ($) | 6.28 | 10.46 | 66.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,788 | 1,847 | 3.3% |
| P/S Multiple | 0.3 | 0.4 | 60.7% |
| Shares Outstanding (Mil) | 76 | 75 | 0.4% |
| Cumulative Contribution | 66.6% |
Market Drivers
6/30/2025 to 7/16/2026| Return | Correlation | |
|---|---|---|
| CODI | 66.6% | |
| Market (SPY) | 22.5% | 15.9% |
| Sector (XLI) | 23.4% | 13.4% |
Fundamental Drivers
The -46.9% change in CODI stock from 6/30/2023 to 7/16/2026 was primarily driven by a -48.1% change in the company's P/S Multiple.| (LTM values as of) | 6302023 | 7162026 | Change |
|---|---|---|---|
| Stock Price ($) | 19.70 | 10.46 | -46.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,730 | 1,847 | 6.7% |
| P/S Multiple | 0.8 | 0.4 | -48.1% |
| Shares Outstanding (Mil) | 72 | 75 | -4.1% |
| Cumulative Contribution | -46.9% |
Market Drivers
6/30/2023 to 7/16/2026| Return | Correlation | |
|---|---|---|
| CODI | -46.9% | |
| Market (SPY) | 75.3% | 23.6% |
| Sector (XLI) | 74.8% | 23.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CODI Return | 72% | -38% | 29% | 8% | -79% | 105% | -35% |
| Peers Return | 22% | -18% | -14% | -8% | -36% | 30% | -34% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% |
Monthly Win Rates [3] | |||||||
| CODI Win Rate | 58% | 33% | 58% | 42% | 33% | 57% | |
| Peers Win Rate | 53% | 42% | 37% | 50% | 37% | 54% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 57% | |
Max Drawdowns [4] | |||||||
| CODI Max Drawdown | -12% | -45% | -23% | -16% | -79% | -33% | |
| Peers Max Drawdown | -20% | -38% | -36% | -29% | -46% | -24% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: NWL, KMB, EPC, FOXF, SON.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/16/2026 (YTD)
How Low Can It Go
| Event | CODI | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -22.3% | -9.5% |
| % Gain to Breakeven | 28.6% | 10.5% |
| Time to Breakeven | 52 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -19.0% | -6.7% |
| % Gain to Breakeven | 23.5% | 7.1% |
| Time to Breakeven | 117 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -50.5% | -33.7% |
| % Gain to Breakeven | 102.2% | 50.9% |
| Time to Breakeven | 267 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -33.4% | -19.2% |
| % Gain to Breakeven | 50.0% | 23.8% |
| Time to Breakeven | 133 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -11.7% | -12.2% |
| % Gain to Breakeven | 13.3% | 13.9% |
| Time to Breakeven | 75 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -13.0% | -6.8% |
| % Gain to Breakeven | 15.0% | 7.3% |
| Time to Breakeven | 79 days | 15 days |
In The Past
Compass Diversified's stock fell -5.5% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 5.8% gain to breakeven.
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Asset Allocation
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| Event | CODI | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -22.3% | -9.5% |
| % Gain to Breakeven | 28.6% | 10.5% |
| Time to Breakeven | 52 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -50.5% | -33.7% |
| % Gain to Breakeven | 102.2% | 50.9% |
| Time to Breakeven | 267 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -33.4% | -19.2% |
| % Gain to Breakeven | 50.0% | 23.8% |
| Time to Breakeven | 133 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -29.3% | -17.9% |
| % Gain to Breakeven | 41.5% | 21.8% |
| Time to Breakeven | 191 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -47.8% | -53.4% |
| % Gain to Breakeven | 91.7% | 114.4% |
| Time to Breakeven | 291 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -21.2% | -8.6% |
| % Gain to Breakeven | 26.9% | 9.5% |
| Time to Breakeven | 56 days | 47 days |
In The Past
Compass Diversified's stock fell -5.5% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 5.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Compass Diversified (CODI)
Compass Diversified (CODI) operates as a publicly traded private equity firm that strategically acquires and manages a portfolio of established middle-market companies. Unlike traditional private equity firms that raise external funds, CODI invests directly from its own balance sheet, aiming for controlling ownership interests in its portfolio companies. The firm focuses on various investment strategies, including buyouts, add-on acquisitions, industry consolidation, and recapitalizations, typically holding these investments for five to seven years.
CODI targets profitable businesses with an EBITDA generally ranging from $15 million to $80 million, making individual investments between $100 million and $800 million. Its investment focus is primarily on niche industrial and branded consumer companies, seeking opportunities within sectors such as manufacturing, distribution, consumer products, business services, safety & security, electronic components, food, and foodservice.
The firm's primary market is North America, where it identifies companies that can benefit from its operational expertise and capital to achieve further growth and market leadership. By acquiring majority stakes, Compass Diversified actively participates in the strategic direction and value creation of its diverse group of portfolio businesses, ultimately aiming to generate long-term returns for its shareholders.
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Here are 1-3 brief analogies for Compass Diversified (CODI):
- A publicly traded mini-Berkshire Hathaway, but one that actively buys, improves, and sells a diverse portfolio of private, mid-sized businesses within 5-7 years, rather than holding them indefinitely.
- Like a publicly traded private equity firm such as Apollo Global Management or KKR, but instead of managing funds for external clients, CODI uses its *own* balance sheet to acquire, grow, and eventually sell diverse mid-sized businesses.
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- Private Equity Investments: Acquiring controlling ownership interests in a diversified portfolio of niche industrial and branded consumer companies.
- Portfolio Company Management: Providing strategic and operational oversight to its acquired businesses to drive growth and enhance value over a typical holding period of five to seven years.
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Compass Diversified (CODI) is a private equity firm that specializes in acquiring and managing controlling interests in a diversified portfolio of companies. As an investment firm, CODI itself does not directly sell products or services to end-customers, whether businesses or individuals.
CODI's business model involves deploying capital to acquire companies, growing their value, and eventually exiting these investments. Therefore, Compass Diversified does not have "major customers" in the traditional sense of companies or individuals that purchase goods or services from it. Its revenue is derived from the performance and eventual sale of its portfolio companies. The various portfolio companies that CODI owns each have their own distinct customer bases.
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Elias J. Sabo - Partner & Chief Executive Officer
Elias J. Sabo is a founding partner of Compass Diversified, established in 1998, and has served as Chief Executive Officer and a director since May 2018. He is a member of the Investment Committee, where he plays a critical role in identifying and evaluating transaction opportunities and guiding the company's strategic growth. Mr. Sabo also directs the financing activities of Compass Diversified. Prior to his current role, he served as Chairman of Fox Factory Holding Corp. (NASDAQ: FOXF) from 2007 to 2017, a company that was a former CODI subsidiary. His career before Compass Diversified included roles at CIBC Oppenheimer, Boundary Partners, and Colony Capital. Mr. Sabo has also held directorships at several other companies, including Staffmark Holdings, Inc., CamelBak Products LLC, Arnold Magnetic Technologies Corp., Advanced Circuits, Inc., Liberty Safe & Security Products, Inc., Anodyne Medical Device, Inc., Fresh Hemp Foods Ltd., and 5.11 ABR Corp.
Stephen Keller - Executive Vice President, Chief Financial Officer
Stephen Keller joined Compass Diversified in 2024 as the Chief Financial Officer. In this role, he is responsible for the firm's financial controls, accounting and reporting, and risk assessment at a public company level. He also manages the firm's relationships with its capital markets partners. Mr. Keller is a member of the ESG committee, driving the company's commitment to environmental stewardship, corporate social responsibility, and governance. His previous experience includes positions at Envista Holdings Corporation, Avery Dennison, The Freudenberg Group, and AB SKF.
Patrick Maciariello - Partner & Chief Operating Officer, Compass Group Management
Patrick Maciariello joined Compass Diversified in 2005. He serves as Chief Operating Officer and is a member of Compass Diversified's Investment Committee, overseeing the evaluation of investment opportunities. Mr. Maciariello is responsible for managing Compass Diversified's transaction opportunities and has financial and strategic oversight of its subsidiaries. He currently holds director and chairman positions for The Sterno Group of Companies, LLC, Foam Fabricators, Inc., BOA, and Lugano Diamonds. He also serves as a director and board member for 5.11, Inc., Advanced Circuits, Inc., The Ergo Baby Carrier, Inc., and Altor Solutions. Notably, Mr. Maciariello had a significant impact as a board member for several subsidiaries, including Manitoba Harvest, which was successfully monetized. Prior to joining CODI, he worked at Bain & Company and Deutsche Banc Alex Brown.
Joseph Milana - Chief Administrative Officer, Executive Vice President of Finance
Joseph Milana holds the titles of Chief Administrative Officer and Executive Vice President of Finance at Compass Diversified.
Carrie Ryan - General Counsel, Chief Compliance Officer & Corporate Secretary
Carrie Ryan serves as the General Counsel, Chief Compliance Officer, and Corporate Secretary for Compass Diversified.
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Accounting Irregularities, Financial Restatement, and Related Legal/Regulatory Actions
Compass Diversified faces significant risks stemming from the accounting scandal and subsequent Chapter 11 bankruptcy of its former subsidiary, Lugano Holding, Inc.. The company has withdrawn reliance on its financial statements for fiscal years 2022, 2023, and 2024, requiring a costly and time-consuming restatement process. This situation has led to operating in a "financial twilight," relying on the forbearance of secured lenders to avoid technical default, and carries a risk of delisting if restated financials are not filed by mid-2026. Furthermore, there are ongoing SEC and DOJ investigations tied to these matters, which could extend for years, consume substantial management resources, and potentially result in civil or criminal enforcement actions, monetary penalties, and reputational damage.
High Leverage, Liquidity Constraints, and Persistent Unprofitability
The company exhibits poor financial strength, characterized by a high debt-to-equity ratio of 3.62 and liquidity constraints with a current ratio of 0.39 and quick ratio of 0.16. Compass Diversified has experienced persistent unprofitability, reporting a challenging 2025 with a 5.1% decline in GAAP net revenue and a net loss of $293.7 million, and continues to be loss-making. This high leverage exposes the company to refinancing risks, including a substantial term loan due in the near future, and makes it vulnerable to rising interest rates, hindering its ability to generate sustainable earnings.
Exposure to Economic Downturns and Supply Chain Disruptions Affecting Portfolio Companies
As a diversified holding company, Compass Diversified's portfolio companies, particularly within the industrial sector, are exposed to macroeconomic headwinds such as global supply chain disruptions and evolving regulatory changes. These external factors can adversely impact the operational performance, revenue, and ultimately the valuation of its underlying investments, affecting CODI's ability to achieve profitable exits within its typical five-to-seven-year holding period.
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Compass Diversified (CODI) holds a diverse portfolio of companies across branded consumer and industrial sectors, each operating within distinct addressable markets in North America and globally.
Advanced Circuits (Printed Circuit Board Manufacturer)
The global printed circuit board (PCB) market size was valued at USD 97.11 billion in 2025 and is projected to reach approximately USD 169.18 billion by 2035, growing at a compound annual growth rate (CAGR) of 5.71% from 2026 to 2035. The U.S. printed circuit board market was valued at USD 15.3 billion in 2022 and USD 16.1 billion in 2023, reaching USD 18 billion in 2025. North America's PCB market is expected to grow at a CAGR of 7.12% throughout the forecast period. North America accounted for approximately 8% of the global printed circuit board market in 2025.
5.11 Tactical (Tactical Apparel and Gear)
The global tactical apparel market size was valued at USD 13.9 billion in 2023 and is projected to reach USD 26.6 billion by 2032, with a CAGR of 7.5% from 2024 to 2032. The U.S. tactical apparel market was valued at USD 5.5 billion in 2023 and is expected to reach USD 10.7 billion by 2032, growing at a CAGR of 7.8% during the forecast period. The global tactical gear market, which includes a broader range of products, was valued at USD 24.5 billion in 2023 and is anticipated to reach USD 45.3 billion by 2032, exhibiting a CAGR of 7.1% during the forecast period. North America held the largest share of the tactical gear market in 2023.
ERGObaby (Wearable Baby Carriers, Strollers, and Related Juvenile Products)
The global baby carrier market size was valued at USD 1.1 billion in 2023 and is anticipated to reach USD 1.9 billion by 2032, with a CAGR of 6.2% from 2024 to 2032. North America held the largest market share for baby carriers in 2023. The global baby stroller market size was valued at USD 2.3 billion in 2023 and is projected to grow to USD 3.6 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period. North America is a significant market for baby strollers.
Sterno Group (Portable Food Warming Systems)
The global portable food warmer market size was estimated at USD 1,350.75 million in 2024 and is projected to reach USD 2,775.40 million by 2032, growing at a CAGR of 9.2% from 2025 to 2032. North America is the fastest-growing region in this market with a 38.5% share, and the United States leads with a 22.7% share. The U.S. mobile food warmer market is predicted to be worth USD 1,929.7 million by 2035. The global food warmer machines market size was valued at USD 2.67 billion in 2024 and is projected to reach USD 4.46 billion by 2032, with a CAGR of 6.64% during the forecast period of 2025 to 2032. North America dominates the food warmer machines market. Additionally, the global food warming trays market size reached USD 554.8 million in 2024 and is expected to reach USD 939.3 million by 2033, exhibiting a CAGR of 5.72% during 2025-2033.
Velocity Outdoor (Airguns, Archery Products, Optics, and Related Accessories)
The global airgun market size was valued at USD 1.34 billion in 2023 and is projected to reach USD 2.21 billion by 2032, with a CAGR of 5.7% from 2024 to 2032. North America held the largest market share for airguns in 2023. The global archery equipment market size was valued at USD 3.0 billion in 2023 and is expected to reach USD 4.5 billion by 2032, growing at a CAGR of 4.6% during the forecast period. North America is a significant region in the archery equipment market. The global hunting optics market size was valued at USD 2.3 billion in 2023 and is projected to reach USD 4.1 billion by 2032, exhibiting a CAGR of 6.8% from 2024 to 2032. North America dominated the hunting optics market in 2023.
Marucci Sports (Baseball and Softball Equipment)
The global baseball equipment market size was valued at USD 17.18 billion in 2023 and is projected to reach USD 22.03 billion by 2030, growing at a CAGR of 3.6% from 2024 to 2030. Another source estimates the global baseball equipment market size at USD 18.91 billion in 2025, projected to reach USD 29.11 billion by 2034, exhibiting a CAGR of 4.91% from 2026 to 2034. The U.S. baseball equipment market size was valued at USD 5.2 billion in 2023. The U.S. baseball equipment market is forecast to increase by USD 301.5 million at a CAGR of 5.8% between 2024 and 2029. North America dominated the global baseball equipment market in 2024.
PrimaLoft (Branded, High-Performance Synthetic Insulation)
The global synthetic insulation market size was valued at USD 13.5 billion in 2023 and is expected to reach USD 22.8 billion by 2032, growing at a CAGR of 6.0% from 2024 to 2032. North America held a significant share of the synthetic insulation market in 2023. The global performance apparel market, which utilizes high-performance insulation, was valued at USD 235.1 billion in 2023 and is projected to reach USD 450.3 billion by 2032, at a CAGR of 7.6% from 2024 to 2032. North America is a key region in the performance apparel market.
Altor Solutions (Packaging, Insulation, and Componentry Solutions)
Due to the broad nature of "Packaging, Insulation and Componentry (PIC) solutions," a precise addressable market size for this combination is not readily available. However, for specific components, the global industrial packaging market was valued at USD 65.8 billion in 2023 and is projected to reach USD 101.2 billion by 2032, with a CAGR of 5.1% from 2024 to 2032. The global insulation market size was valued at USD 62.4 billion in 2023 and is expected to reach USD 104.7 billion by 2032, growing at a CAGR of 5.9% from 2024 to 2032. North America holds a substantial share in both the industrial packaging and insulation markets.
Arnold Magnetic Technologies (Engineered Electric Motor and Magnetic Solutions)
The global industrial electric motors market size was valued at USD 20.3 billion in 2023 and is expected to reach USD 33.7 billion by 2032, growing at a CAGR of 5.8% from 2024 to 2032. North America held a significant share of the industrial electric motors market in 2023. The global permanent magnets market, a key component of magnetic solutions, was valued at USD 23.6 billion in 2023 and is projected to reach USD 41.2 billion by 2032, with a CAGR of 6.4% from 2024 to 2032. North America is a major market for permanent magnets.
Lugano Diamonds (High-End, One-of-a-Kind Jewelry)
The global luxury jewelry market size was valued at USD 28.5 billion in 2023 and is expected to reach USD 46.2 billion by 2032, with a CAGR of 5.5% from 2024 to 2032. North America held a significant share of the luxury jewelry market in 2023. The global fine jewelry market was valued at USD 262.2 billion in 2023 and is projected to reach USD 419.7 billion by 2032, exhibiting a CAGR of 5.4% from 2024 to 2032. North America is a prominent region in the fine jewelry market.
The Honey Pot Company ("Better-for-You" Feminine Care Brand)
The global feminine hygiene products market size was valued at USD 42.6 billion in 2023 and is expected to reach USD 65.8 billion by 2032, growing at a CAGR of 5.0% from 2024 to 2032. North America held a significant share of the feminine hygiene products market in 2023. The global natural and organic feminine care products market size was valued at USD 2.1 billion in 2023 and is projected to reach USD 4.5 billion by 2032, with a CAGR of 8.9% from 2024 to 2032. North America is a leading region in the natural and organic feminine care products market.
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Compass Diversified (CODI) anticipates future revenue growth over the next 2-3 years through a combination of organic expansion within its diverse portfolio, strategic acquisitions once its balance sheet is optimized, and benefits derived from portfolio optimization through divestitures.
Here are the key drivers:
- Organic Growth within Existing Subsidiaries: The company expects to see continued mid-single-digit revenue growth and high-single-digit subsidiary adjusted EBITDA growth from its remaining businesses, excluding the impact of Lugano. Specifically, the branded consumer businesses have demonstrated strong adjusted EBITDA growth despite challenging market conditions. Additionally, the industrial segment, including Arnold Magnetic Technologies, is positioned for future growth, evidenced by a backlog that increased by over 40% at the end of the previous year, particularly in aerospace and defense markets. This organic growth is a key component of CODI's strategy to reduce leverage.
- Strategic Acquisitions: While the immediate focus is on deleveraging, CODI's fundamental business model is built on a "buy-and-build approach," acquiring and investing in middle-market businesses to enhance their operational performance and value. Management has indicated a longer-term plan to "reignite" its acquisition-driven model when capital market conditions become more favorable, aiming to grow its portfolio of niche industrial and branded consumer companies. Recent acquisitions, such as The Honey Pot Company in January 2024, which generated double-digit growth, are expected to continue contributing to revenue.
- Portfolio Optimization through Divestitures: Compass Diversified is actively pursuing divestitures of certain subsidiaries as a near-term priority to reduce its leverage ratio and improve financial flexibility. The deconsolidation of underperforming assets, such as Lugano, is expected to remove significant headwinds and allow the core profitability of the remaining, healthier portfolio to be more apparent. The capital generated from these divestitures can then be strategically redeployed into higher-growth opportunities within existing subsidiaries or facilitate future acquisitions, thereby supporting overall revenue growth.
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Share Repurchases
- Compass Diversified authorized a share repurchase program of up to $100 million on October 16, 2024. This authorization allowed for repurchases through December 31, 2024, with the possibility of extension.
- In the fourth quarter of 2024, the company repurchased more than 400,000 common shares at an average price of $23.19 per share, totaling over $9.2 million.
Share Issuance
- The weighted average number of common shares outstanding increased from approximately 65 million at the end of 2021 to about 75 million at the end of 2024 and into Q3 2025, indicating share issuances over this period.
Inbound Investments
- On December 21, 2023, Compass Diversified received a $75.2 million equity investment.
Outbound Investments
- In January 2024, Compass Diversified completed the acquisition of The Honey Pot Company for $380 million.
- The company completed the acquisition of PrimaLoft for $530 million in July 2022.
- In September 2021, Compass Diversified completed the acquisition of Lugano Diamonds & Jewelry for $256 million.
Capital Expenditures
- Capital expenditures for 2025 were $44.3 million, representing a $12 million reduction from the prior year, suggesting 2024 capital expenditures were approximately $56.3 million.
- For 2026, the company's capital expenditure guidance is projected to be between $30 million and $40 million.
- The primary focus of these capital expenditures is to support the growth and continued investment in its operating subsidiaries.
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 24.36 |
| Mkt Cap | 1.8 |
| Rev LTM | 4,647 |
| Op Inc LTM | 306 |
| FCF LTM | 34 |
| FCF 3Y Avg | 182 |
| CFO LTM | 181 |
| CFO 3Y Avg | 338 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 0.7% |
| Rev Chg 3Y Avg | -2.2% |
| Rev Chg Q | -0.3% |
| QoQ Delta Rev Chg LTM | -0.0% |
| Op Inc Chg LTM | -3.1% |
| Op Inc Chg 3Y Avg | -3.6% |
| Op Mgn LTM | 6.5% |
| Op Mgn 3Y Avg | 7.5% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 4.5% |
| CFO/Rev 3Y Avg | 8.7% |
| FCF/Rev LTM | 1.6% |
| FCF/Rev 3Y Avg | 4.9% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| 5.11 | 552 | 532 | 533 | 486 | 445 |
| Sterno | 306 | 318 | 324 | 352 | 375 |
| Altor | 303 | 239 | 238 | 261 | 180 |
| BOA | 190 | 191 | 156 | 209 | 165 |
| Arnold | 151 | 172 | 167 | 154 | 140 |
| The Honey Pot (THP) | 140 | 105 | |||
| Lugano | 79 | 60 | 308 | 202 | 54 |
| PrimaLoft | 77 | 74 | 67 | 25 | |
| Velocity Outdoor | 76 | 96 | 172 | 232 | 270 |
| Corporate | 0 | ||||
| Ergobaby | 94 | 88 | 94 | ||
| Compass AC Holdings, Inc. (Advanced Circuits or ACI) | 90 | 90 | |||
| Marucci Sports, LLC (Marucci) | 165 | 118 | |||
| Total | 1,874 | 1,788 | 2,059 | 2,264 | 1,932 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| 5.11 | 51 | 39 | 47 | 44 | 39 |
| BOA | 50 | 47 | 27 | 58 | 34 |
| Sterno | 43 | 31 | 25 | 20 | 20 |
| The Honey Pot (THP) | 15 | -2 | |||
| Altor | 15 | 22 | 35 | 25 | 18 |
| PrimaLoft | 4 | 4 | -57 | -14 | |
| Arnold | 4 | 8 | 22 | 17 | 12 |
| Velocity Outdoor | -1 | -14 | -33 | 19 | 40 |
| Lugano | -78 | -62 | 100 | 53 | 10 |
| Corporate | -91 | -88 | -80 | -73 | -59 |
| Ergobaby | 5 | -17 | 9 | ||
| Compass AC Holdings, Inc. (Advanced Circuits or ACI) | 24 | 25 | |||
| Marucci Sports, LLC (Marucci) | 21 | 16 | |||
| Total | 11 | -15 | 90 | 176 | 165 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Goodwill | 895 | 896 | 901 | 1,067 | 882 |
| 5.11 | 488 | 473 | 449 | 451 | 355 |
| Altor | 327 | 355 | 222 | 199 | 206 |
| The Honey Pot (THP) | 290 | 303 | 0 | ||
| PrimaLoft | 250 | 270 | 290 | 311 | |
| BOA | 213 | 222 | 245 | 240 | 263 |
| Sterno | 175 | 198 | 226 | 211 | 244 |
| Corporate and other identifiable assets | 161 | 21 | 404 | 18 | 105 |
| Arnold | 152 | 151 | 137 | 105 | 102 |
| Velocity Outdoor | 93 | 99 | 232 | 224 | 220 |
| Lugano | 0 | 317 | 635 | 328 | 234 |
| Sales allowance accounts | -5 | -6 | -9 | ||
| Assets of discontinued operations | 0 | ||||
| Ergobaby | 86 | 85 | 87 | ||
| Accounts receivable, net | 331 | 278 | |||
| Current assets of discontinued operations | 18 | ||||
| Marucci Sports, LLC (Marucci) | 182 | 146 | |||
| Non-current assets of discontinued operations | 80 | ||||
| Compass AC Holdings, Inc. (Advanced Circuits or ACI) | 24 | ||||
| Total | 3,039 | 3,297 | 3,817 | 3,850 | 3,144 |
Price Behavior
| Market Price | $10.46 | |
| Market Cap ($ Bil) | 0.8 | |
| First Trading Date | 05/18/2006 | |
| Distance from 52W High | -16.2% | |
| 50 Days | 200 Days | |
| DMA Price | $10.82 | $8.01 |
| DMA Trend | up | up |
| Distance from DMA | -3.4% | 30.6% |
| 3M | 1YR | |
| Volatility | 49.0% | 70.4% |
| Downside Capture | -91.32 | 59.56 |
| Upside Capture | -68.94 | 106.39 |
| Correlation (SPY) | -11.2% | 16.4% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.64 | -0.41 | -0.02 | 0.91 | 0.94 | 0.95 |
| Up Beta | -1.22 | -0.51 | -0.24 | 0.28 | 1.56 | 1.08 |
| Down Beta | 0.43 | 0.24 | 0.23 | 1.60 | 0.36 | 0.87 |
| Up Capture | -121% | -79% | 66% | 216% | 129% | 30% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 7 | 12 | 27 | 61 | 119 | 364 |
| Down Capture | -53% | -42% | -93% | -0% | 76% | 101% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 14 | 29 | 36 | 62 | 129 | 371 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CODI | |
|---|---|---|---|---|
| CODI | 73.6% | 70.3% | 1.07 | - |
| Sector ETF (XLI) | 21.5% | 16.6% | 1.00 | 13.2% |
| Equity (SPY) | 21.8% | 12.6% | 1.29 | 15.8% |
| Gold (GLD) | 19.1% | 28.0% | 0.61 | 3.5% |
| Commodities (DBC) | 27.9% | 18.9% | 1.16 | -9.6% |
| Real Estate (VNQ) | 16.9% | 14.0% | 0.88 | 25.9% |
| Bitcoin (BTCUSD) | -45.3% | 42.8% | -1.29 | 20.0% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CODI | |
|---|---|---|---|---|
| CODI | -12.4% | 52.1% | -0.00 | - |
| Sector ETF (XLI) | 13.7% | 17.6% | 0.61 | 29.6% |
| Equity (SPY) | 13.2% | 17.1% | 0.60 | 30.6% |
| Gold (GLD) | 16.7% | 18.4% | 0.73 | 5.4% |
| Commodities (DBC) | 8.5% | 19.5% | 0.33 | 3.8% |
| Real Estate (VNQ) | 3.2% | 18.9% | 0.07 | 31.9% |
| Bitcoin (BTCUSD) | 14.5% | 53.5% | 0.45 | 12.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CODI | |
|---|---|---|---|---|
| CODI | 1.5% | 42.5% | 0.22 | - |
| Sector ETF (XLI) | 14.3% | 20.0% | 0.63 | 35.8% |
| Equity (SPY) | 15.4% | 17.9% | 0.73 | 35.5% |
| Gold (GLD) | 10.9% | 16.1% | 0.55 | 3.4% |
| Commodities (DBC) | 6.5% | 18.0% | 0.28 | 11.1% |
| Real Estate (VNQ) | 5.2% | 20.7% | 0.22 | 35.1% |
| Bitcoin (BTCUSD) | 57.8% | 66.2% | 0.98 | 10.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/16/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/6/2026 | 3.5% | 2.2% | -8.4% |
| 2/26/2026 | -10.4% | -17.8% | -20.1% |
| 12/29/2025 | -4.3% | -2.5% | 30.9% |
| 2/27/2025 | 8.8% | 0.3% | -6.5% |
| 10/30/2024 | 5.3% | 10.5% | 15.0% |
| 7/31/2024 | -10.7% | -15.6% | -9.1% |
| 5/1/2024 | -5.5% | -2.2% | 0.8% |
| 2/28/2024 | 2.0% | 5.3% | 6.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 15 | 14 |
| # Negative | 9 | 7 | 8 |
| Median Positive | 3.2% | 3.3% | 9.8% |
| Median Negative | -4.3% | -4.4% | -9.6% |
| Max Positive | 11.8% | 10.5% | 30.9% |
| Max Negative | -10.7% | -17.8% | -20.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/6/2026 | 3.5% | 2.2% | -8.4% |
| 2/26/2026 | -10.4% | -17.8% | -20.1% |
| 12/29/2025 | -4.3% | -2.5% | 30.9% |
| 2/27/2025 | 8.8% | 0.3% | -6.5% |
| 10/30/2024 | 5.3% | 10.5% | 15.0% |
| 7/31/2024 | -10.7% | -15.6% | -9.1% |
| 5/1/2024 | -5.5% | -2.2% | 0.8% |
| 2/28/2024 | 2.0% | 5.3% | 6.7% |
| 11/2/2023 | 5.0% | 3.4% | 15.9% |
| 8/2/2023 | 1.1% | 0.3% | -6.6% |
| 5/3/2023 | 3.6% | 4.7% | 12.4% |
| 3/1/2023 | -4.1% | -7.3% | -13.2% |
| 11/3/2022 | -5.4% | -3.0% | -10.2% |
| 8/3/2022 | -1.3% | -4.4% | -15.9% |
| 5/5/2022 | 11.8% | 2.0% | 22.2% |
| 2/24/2022 | 0.9% | 0.9% | 1.3% |
| 10/28/2021 | 1.3% | 3.3% | 0.5% |
| 7/29/2021 | -0.5% | 3.7% | 18.2% |
| 4/29/2021 | 3.0% | 7.5% | 5.1% |
| 2/24/2021 | 2.1% | 4.7% | 0.3% |
| 10/28/2020 | 3.2% | 3.2% | 14.3% |
| 7/29/2020 | -1.0% | 2.9% | 7.2% |
| SUMMARY STATS | |||
| # Positive | 13 | 15 | 14 |
| # Negative | 9 | 7 | 8 |
| Median Positive | 3.2% | 3.3% | 9.8% |
| Median Negative | -4.3% | -4.4% | -9.6% |
| Max Positive | 11.8% | 10.5% | 30.9% |
| Max Negative | -10.7% | -17.8% | -20.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 01/14/2026 | 10-Q |
| 06/30/2025 | 12/29/2025 | 10-Q |
| 03/31/2025 | 12/18/2025 | 10-Q |
| 12/31/2024 | 02/27/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 03/01/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/03/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 01/14/2026 | 10-Q |
| 06/30/2025 | 12/29/2025 | 10-Q |
| 03/31/2025 | 12/18/2025 | 10-Q |
| 12/31/2024 | 02/27/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 03/01/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/03/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 02/24/2022 | 10-K |
| 09/30/2021 | 10/28/2021 | 10-Q |
| 06/30/2021 | 07/29/2021 | 10-Q |
| 03/31/2021 | 04/29/2021 | 10-Q |
| 12/31/2020 | 02/24/2021 | 10-K |
| 09/30/2020 | 10/28/2020 | 10-Q |
| 06/30/2020 | 07/29/2020 | 10-Q |
| 03/31/2020 | 04/30/2020 | 10-Q |
| 12/31/2019 | 02/26/2020 | 10-K |
| 09/30/2019 | 10/30/2019 | 10-Q |
| 06/30/2019 | 07/31/2019 | 10-Q |
Recent Forward Guidance
Updated 7/12/2026Latest: Q1 2026 Earnings Reported 5/6/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Subsidiary Adjusted EBITDA | 320.00 Mil | 342.50 Mil | 365.00 Mil | -7.4% | Lowered | Guidance: 370.00 Mil for 2026 | |
| 2026 Branded Consumer Subsidiary Adjusted EBITDA | 225.00 Mil | 242.50 Mil | 260.00 Mil | 1.0% | Raised | Guidance: 240.00 Mil for 2026 | |
| 2026 Industrial Subsidiary Adjusted EBITDA | 95.00 Mil | 100.00 Mil | 105.00 Mil | -23.1% | Lowered | Guidance: 130.00 Mil for 2026 | |
Prior: Q4 2025 Earnings Reported 2/26/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Subsidiary Adjusted EBITDA | 345.00 Mil | 370.00 Mil | 395.00 Mil | 7.2% | Higher New | Guidance: 345.00 Mil for 2025 | |
| 2026 Branded Consumer Subsidiary Adjusted EBITDA | 220.00 Mil | 240.00 Mil | 260.00 Mil | ||||
| 2026 Industrial Subsidiary Adjusted EBITDA | 125.00 Mil | 130.00 Mil | 135.00 Mil | ||||
Compass Diversified — Investor Video Playlist
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Industrial Conglomerates Resources |
| Bloomberg Businessweek |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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