Forensic Analysis · General / Diversified · as of Jun 27, 2026
Compass Diversified Holdings (CODI)
A forensic read on Compass Diversified Holdings built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-0.1
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-46.3%
ROE
$783M
Market cap
4.91%
Dividend yield
Compass Diversified Holdings earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -0.1, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
0%Return on invested capital.Return on invested capital is 0% and steady — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+2.1%/yrShare-count dilution.Diluted share count changed +6% over the last 3 years to FY2025 (+2.1%/yr). The count is GROWING — existing holders are being diluted. That's ~2.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~6%.
stoppedShareholder returns — halted.Capital returns have STOPPED — $10M of buybacks + dividends in FY2024, but ~$0 in FY2025. A halt usually means the company is conserving cash; understand why before reading it as neutral.
$157MGoodwill impairments.Took $157M of goodwill writedowns across 4 year(s) (FY2022 ($26M), FY2023 ($89M), FY2024 ($8M)) — about 294% of net income over the span. A large writedown means an acquisition turned out worth far less than was paid — a real mark against M&A discipline.
Key fundamentals
Net Margin-12.1%
Debt / Equity4.25x
Free Cash Flow$-51.1M
Latest Revenue$1.87B
Return on Equity-51.2%
Revenue Growth YoY+4.8%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Compass Diversified Holdings:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about CODI's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown