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Released on Monday, November 7, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Compass Diversified Holdings (NYSE:CODI) is a business services and management conglomerate which operates its holdings through Group Management LLC (CGM) and Compass AC Holding. This is one of the smallest business conglomerates, coming in with a market capitalization of around $615 million.
CODI is trading at $13.13 per share (5:43 PM EDT, November 4th, 2011) and has a price that is $8.61 times earnings. CODI has a volatility beta of around 1.03 , so it will move nicely with the market on any given day—and you might be able to predict its movement as recently the market has shown to be highly prone to reactions of the market in the European debt crisis.
Slow stochastics show that the stock’s price should continue to rise over the longer- term. The company has a current ratio of 1.83, so it has the ability to cover any of its outstanding debt as it comes due. The company only has about $88 million in debt and an operating cash flow of $85 million—there should be substantial cash inflow to allow for the debts to be paid if need be.
Compass has an annual dividend yield, which totaled 10.40 % last year, so even if you do not appreciate on the value of the stock, you could make a decent return from the dividend alone, which are kept at a lower tax rate than any short-term gains anyway. Definitely something to keep in mind when you are purchasing your stocks in your portfolio—especially if you are using a retirement investment strategy, a DRIP is more than necessary.
Within the industry of staffing and outsourcing services, CODI is at the top of its game, managing to come in above its competitors in revenue, market capitalization, operating margin, and EBITDA.
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