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Compass Diversified

CODIIndustrialsNASDAQ

Conglomerates · Last scanned Jun 3, 2026

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Financials · Annual
Revenue
$1.87B
+4.8% YoY
Net Income
-$226.4M
-8.4% YoY
EBITDA
$15.8M
+133.4% YoY
Free Cash Flow
-$64.2M

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About Compass Diversified

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage, and middle market investments. With a market capitalization of $826.1M, it sits in small-cap territory. 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.

Key stats
Market Cap$826.1M
Fwd P/E39.21
EPS$-3.66
Beta1.28
52W Change+56.6%
Dividend Yield9.45%
ROE-53.2%
Analysis

The company holds $60.7M in cash, though total debt stands at $2.03B. This level of leverage is common in the industry but worth monitoring as interest rate conditions evolve. The company is burning cash, with free cash flow at -$64.2M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. Return on equity stands at -53.2%, which is negative for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. ROA of 1.3% is on the lower side, which is common in asset-heavy industries. Revenue has been relatively flat, moving from $1.76B (2022) to $1.87B (2025).

Compass Diversified carries a heavier debt load relative to its cash position, which introduces financial risk that investors should weigh. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. It is important to consider these factors alongside broader market conditions and individual financial goals when reviewing CODI.

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CODI — Compass Diversified Technical Analysis | Scanance