Compass Diversified Holdings (CODI)
NYSEIndustrialsConglomeratesSnapshot 2026-09-04
$11.67+1.04%
Close 2026-09-04 · 1-day change
NYSEIndustrialsConglomeratesSnapshot 2026-09-04
QuarterlyIQ Insights · CODI
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on profitable growth across subsidiaries and pursue divestitures to realize attractive value for shareholders.
Stated as a priority in 2 of last 2 quarters. Net revenues declined from $478.7M in 2025-Q2 to $424.0M in 2026-Q2 (-11.4%), reflecting divestitures and business mix, while Subsidiary Adjusted EBITDA grew 12.6% to $91.5M in 2026-Q2. Management emphasizes profitable growth and divestitures to realize value, showing delivering trajectory in EBITDA despite revenue decline.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Our near-term priorities are straightforward: drive profitable growth, pursue divestitures where we can realize attractive value...”
“The first quarter of 2026 was a quarter of execution, with strong subsidiary performance led by our Consumer vertical, and a meaningful divestiture at an attractive valuation.”
Apply proceeds from divestitures to reduce debt and amend credit facilities to extend maturities and improve flexibility.
Stated as a priority in 2 of last 2 quarters. CODI applied over $280M of Sterno sale proceeds to reduce debt, lowering total debt from $1.89B at 2025-Q4 to $1.59B at 2026-Q2. The company also amended its credit facility to extend maturities and reduce revolving commitments, delivering on financial flexibility and deleveraging priorities.
“We took concrete actions to strengthen our balance sheet, including selling Sterno’s Food Service Business and applying more than $280 million of proceeds to debt reduction.”
“The Sterno transaction generated proceeds to CODI of approximately $280 million, reducing senior secured indebtedness below 1.0x...”
Amend Management Services Agreement to lower fees and tie more compensation to shareholder returns and operating performance.
Newly stated in 2026-Q2. CODI amended its Management Services Agreement to reduce base fees from 2.00% to 1.25% of Adjusted Net Assets and introduced performance-based awards to align manager compensation with shareholder returns. The company expects 2027 fees to decline by $19M to $22M, indicating a strategic shift toward cost discipline and alignment.
“Amended Management Services Agreement to lower expected fees and increase alignment with shareholders by tying more of the Manager’s compensation to shareholder returns and operating performance.”
Focus on growth in Branded Consumer businesses, targeting revenue and Adjusted EBITDA expansion.
Stated as a priority in 2 of last 2 quarters. Branded Consumer segment net revenues increased to $270.8M in 2026-Q2, up 7.2% year-over-year, with Adjusted EBITDA rising 24.2% to $69.3M. Management highlights strong growth in key brands, indicating delivering progress in this segment.
“BOA, PrimaLoft and The Honey Pot were each up more than 25% year-over-year, and Arnold was a standout, up nearly 50%.”
“Strong subsidiary performance led by our Consumer vertical.”
Complete the divestiture of Sterno's food service business and use proceeds to reduce debt and improve leverage.
Over the trailing year it converted -0.42x of net income into operating cash flow. Historically, Industrials names rated fragile grew net income 48% of the time over the next year (vs 59% for the rest of the cohort, n=4997).
Not enough signal yet.
Not enough signal to read sensitivity to the US dollar, the broad stock market, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
44 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated volatile grew net income 58% of the time over the next year (vs 57% for the rest of the cohort, n=2592).
Not investment advice. As of 2026-09-04.