D/B/A Compass Diversified Holdi — Earnings Quality Grade F
CODI · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 40 days, change -3 days YoY
AR growth -2.1% vs revenue growth 4.8%
Revenue 4.8%, CFFO 95.5%. Cash follows revenue
Expense Quality
Inventory -29.3% vs COGS 2.1%. Normal
CapEx growth -21.8% vs revenue 4.8%. Normal
SG&A/Gross Profit = 81.1%, exceeds 70%
Gross margin 43.5%, change +1.5pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = -7.2%. Low accruals
Cash $0.1B covers only 4% of debt $1.9B
Balance Sheet Health
Goodwill+Intangibles $1.8B = 405% of equity. Over 50%
Debt/EBITDA = 118.5x (>4x). Interest coverage = 0.2x (<2x). Financial stress
Other assets -18.5% vs revenue 4.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -5% YoY. Normal
Manipulation Score
M-Score = -2.72 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25