Forensic Analysis · Furniture & Home Furnishings · as of Nov 11, 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.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-0.1
Distress distance
Clean
Earnings quality
5
Forensic signals
-40.4%
ROE
4.8%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Compass Diversified Holdings earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -0.1, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
0.3%
FY2025
Return on invested capital.Return on invested capital is 0.3% in the latest fiscal year and rising across FY2023–FY2025 from -2.1%. After-tax operating profit was ($55M) in FY2023 and $9M in FY2025, with operating income at -4.1% of revenue in FY2023, -0.8% in FY2024 and 0.6% in FY2025. The capital base behind it went from $2.6B in FY2023 to $2.6B in FY2025 (+2%), while the revenue it carried went from $1.7B to $1.9B. Across FY2024–FY2025, $619M went into capital expenditure and acquisitions against $97M of depreciation excluding $188M of intangible-asset amortisation. The base is struck net of amortisation, write-downs and the current liabilities that fund it, so it moved by less than that spending net of the wear, and this row does not say which of those absorbed the difference. FY2023's operating profit carried a $91M asset write-down and a $89M goodwill write-off that alone took about 5.5 points off that year's return, so more than the whole 2.4-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more. A non-cash write-down lowers the reported return in the year it lands.
stopped
FY2024→FY2025
Shareholder 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.
+2.1%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +4% over the last 2 years to FY2025 (+2.1%/yr). The count is growing — 72.1M shares in FY2023, 75.2M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. 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 FY2023 has been diluted ~4%.
0.9% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 0.9% of revenue in FY2025 — about $0.21 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.1% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
$98M
FY2023–FY2024
Goodwill impairments.Took $98M of goodwill writedowns across 2 years (FY2023 ($89M), FY2024 ($8M)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$1.87B
Revenue Growth YoY+4.8%
Revenue CAGR (2yr)+5.3%
Net Margin-12.1%
Free Cash Flow-$51.1M
Return on Equity-40.4%
Debt / Equity4.25x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Compass Diversified Holdings's actual 10-K/10-Q/8-K filings?