Compass Inc (COMP, Financial), a company operating within the real estate industry, has recently experienced a notable surge in its stock price. With a current market capitalization of $1.61 billion and a stock price of $3.51, Compass Inc has seen a 3.24% gain over the past week and an impressive 70.39% gain over the past three months. This significant uptick in stock value has caught the attention of investors and market analysts alike, prompting a closer examination of the factors contributing to this growth.
Understanding Compass Inc's Market Valuation
When assessing the stock's current valuation, the GF Value, which stands at $3.19, plays a crucial role. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Given that the current stock price is slightly above the GF Value, Compass Inc is considered to be fairly valued. This suggests that the stock is trading at a price that is in line with its calculated intrinsic value, providing a balanced opportunity for potential investors.
Comprehensive Overview of Compass Inc
Compass Inc provides a comprehensive platform designed to enhance the capabilities of residential real estate agents. The company's end-to-end solution includes a suite of cloud-based software tailored for the real estate industry, encompassing customer relationship management, marketing, and client service tools. Compass Inc's operations are primarily based in the United States, with all revenue generated domestically. This focus on innovative technology and service delivery has positioned Compass Inc as a notable player in the real estate sector.
Profitability Analysis of Compass Inc
Despite the recent stock performance, Compass Inc's Profitability Rank is relatively low at 1/10, indicating challenges in maintaining profitability compared to industry peers. The company's Operating Margin is currently at -7.34%, which, while not ideal, is better than 19.46% of 1,778 companies in the industry. Additionally, Compass Inc's ROE (Return on Equity) stands at a concerning -78.06%, surpassing only 2.76% of its industry counterparts. The ROA (Return on Assets) and ROIC (Return on Invested Capital) figures are similarly low at -27.01% and -29.08%, respectively, indicating that the company is generating negative returns on its assets and invested capital.
Growth Prospects and Industry Comparison
Despite the profitability concerns, Compass Inc has demonstrated strong growth in certain areas. The company's 3-Year Revenue Growth Rate per Share is an impressive 27.80%, outperforming 85.53% of 1,673 companies in the industry. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at -1.97%, which is still better than 11.03% of the industry. The 3-Year EPS without NRI Growth Rate is at -4.60%, surpassing 40.79% of its peers. These mixed growth indicators suggest that while Compass Inc has areas of strong performance, there are also significant challenges to address for sustained growth.
Notable Shareholders in Compass Inc
Compass Inc's shareholder composition includes several prominent investors. Jim Simons (Trades, Portfolio) leads the pack with 2,001,900 shares, representing a 0.41% share percentage. Following him is Stanley Druckenmiller (Trades, Portfolio), holding 399,100 shares (0.08% share percentage), and Steven Cohen (Trades, Portfolio) with 308,900 shares (0.06% share percentage). The presence of these well-known investors may contribute to the market's confidence in Compass Inc's potential.
Competitive Landscape
In comparison to its competitors, Compass Inc holds a significant market position. ReAlpha Tech Corp (AIRE, Financial) has a market cap of $56.476 million, Marcus & Millichap Inc (MMI, Financial) is valued at $1.49 billion, and Newmark Group Inc (NMRK, Financial) stands at $1.78 billion. These figures place Compass Inc in a competitive stance within the industry, with a market cap that is comparable to some of its closest competitors.
Conclusion: Assessing Compass Inc's Position
In summary, Compass Inc's recent stock performance has been remarkable, with a 70.39% gain over the past three months. The company's market valuation is currently deemed fair, according to the GF Value. However, profitability remains a concern, with low rankings across several key financial metrics. Growth prospects show a mix of strong revenue growth in the past, but future estimates indicate potential challenges. The shareholder composition, featuring notable investors, and the competitive market cap relative to industry peers, round out the picture of Compass Inc's current market position. Investors and analysts will continue to watch Compass Inc closely as it navigates the dynamic real estate industry landscape.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
