Compass Diversified Holdings's Enterprise Value for the quarter that ended in Dec. 2023 was $3,408 Mil.
Compass Diversified Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $87 Mil. Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 2.57%.
The historical rank and industry rank for Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
CODI'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.43 Med: 3.25 Max: 24.08
Current: 2.65
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Compass Diversified Holdings was 24.08%. The lowest was -0.43%. And the median was 3.25%.
CODI's Earnings Yield (Joel Greenblatt) % is ranked worse than 68.67% of 533
companies
in the Conglomerates industry
Industry Median: 6.54
vs CODI: 2.65
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Compass Diversified Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 20.14%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Compass Diversified Holdings Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Compass Diversified Holdings Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Earnings Yield (Joel Greenblatt) %
-0.25
2.85
2.27
3.38
2.57
Compass Diversified Holdings Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Earnings Yield (Joel Greenblatt) %
3.38
3.54
3.13
2.96
2.57
Competitive Comparison
For the Conglomerates subindustry, Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Compass Diversified Holdings Earnings Yield (Joel Greenblatt) % Distribution
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Compass Diversified Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
Compass Diversified Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $87 Mil.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Compass Diversified Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Compass Diversified Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Compass Diversified Holdings (Compass Diversified Holdings) Business Description
Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and niche industrial business. Branded consumer businesses are characterized as those businesses that capitalize on a valuable brand name in their respective market sector. It includes 5.11, Ergobaby, Liberty Safe, and Velocity Outdoor. Niche industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. It includes Advanced Circuits, Arnold, Foam Fabricators, and Sterno. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.
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