Compass Diversified cash flow to debt ratio of -0.36% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Compass Diversified's free cash flow has increased -58.87% from $-124.34M last year to $-51.15M, signaling increasing performance

Compass Diversified's debt to equity ratio is 3.35, which means that the company's assets are unhealthy financed, signaling financial risk.

Compass Diversified's debt has decreased relative to shareholder equity from 5.21 last year to 3.35 today, signaling strengthened financials

Compass Diversified has a net debt to EBITDA ratio of 111.97x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Compass Diversified's interest coverage ratio is 0.52, which means that the company struggles to meet interest obligations, signaling financial risk.

Compass Diversified's profit margin has increased (-53.97%) in the last year from -11.68% to -5.38%, signaling increasing performance

Compass Diversified's short-term assets of $845.16M exceed its short-term liabilities of $349.62M

Compass Diversified's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Compass Diversified's return on equity of -21.01%, is lower than 15.00%, indicating bad performance

Compass Diversified's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Compass Diversified had positive net income in only 2 out of 5 years, indicating unstable earnings

Compass Diversified has negative free cash flow, indicating the company is burning cash rather than generating it

Compass Diversified has negative free cash flow, indicating cash burn

Compass Diversified's yearly earnings has decreased 9.80% since last year from $-208.86M to $-229.32M, signaling decreasing performance

Compass Diversified's yearly revenue has decreased 14.77% since last year from $2.20B to $1.87B, signaling decreasing performance

ROIC 3.34% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Compass Diversified's 3-year revenue CAGR of 2.17% is positive, indicating growing revenue over the past 3 years

Compass Diversified had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Compass Diversified had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Compass Diversified has insufficient data to evaluate this check.

Compass Diversified has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Compass Diversified is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Compass Diversified has an EV/EBITDA ratio of 163.56x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Compass Diversified is overvalued relative to its fair value price of 9.47 based on Earnings Fair Value model

Compass Diversified has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Compass Diversified has a price-to-book ratio of 1.37x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Compass Diversified has a price-to-sales ratio of 0.47x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue