Compass Diversified HoldingsCODI +5.69%56 Gross Margin % is 44.36% as of Mar. 2026, which is 20% above its 10-year median of 36.92. GuruFocus rates CODI with a GF Score™ of 56/100 and a GF Value™ of $21.01 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 511 Conglomerates companies, Compass Diversified Holdings ranks better than 80.23% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Compass Diversified Holdings had a gross margin of 44.36% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Compass Diversified Holdings Gross Margin % Related Terms
Compass Diversified Holdings Gross Margin % Historical Data
* 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.
CODI vs MATW, AIAI, FBYD: Gross Margin % Comparison
For the Conglomerates subindustry, Compass Diversified Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Compass Diversified Holdings (CODI) has a Gross Margin % of 44.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Compass Diversified Holdings and its competitors. This is 20% above median its historical median of 36.92. Over the past decade, Compass Diversified Holdings' Gross Margin % has ranged from 33.38 to 43.74. According to the industry distribution chart, Compass Diversified Holdings ranks #101 out of 511 companies in the Conglomerates industry, placing it in the top 19.8%.
Is Compass Diversified Holdings' Gross Margin % too high?
Compass Diversified Holdings' current Gross Margin % of 44.36% is 20% above median its 10-year median of 36.92. Over the past 10 years, this metric has ranged from a low of 33.38 to a high of 43.74. The Conglomerates industry median Gross Margin % is 25.96. Compass Diversified Holdings' value of 44.36% is 70.9% above this industry median. Based on the distribution chart, Compass Diversified Holdings ranks #101 out of 511 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Compass Diversified Holdings has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Compass Diversified Holdings' Gross Margin % compare to MATW and AIAI?
According to the Conglomerates industry distribution chart, Compass Diversified Holdings ranks #101 out of 511 companies for Gross Margin %. This places Compass Diversified Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.96. Compass Diversified Holdings' value of 44.36% is 70.9% above this benchmark. Historically, Compass Diversified Holdings' own Gross Margin % has ranged from 33.38 to 43.74 over the past decade. While the company's 10-year median is 36.92 vs. the industry median of 25.96, Compass Diversified Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Compass Diversified Holdings's current Gross Margin % of 44.36% is 70.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Compass Diversified Holdings and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Diversified Holdings's current Gross Margin % is 44.36%, which is 20% above median its own 10-year median of 36.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compass Diversified Holdings stock overvalued right now?
Based on GuruFocus' analysis, Compass Diversified Holdings (CODI) is currently considered Possible Value Trap. The stock's GF Value™ is $21.01, compared to a current price of $10.41 — trading 50.5% below its estimated fair value. The current Gross Margin % is 44.36%, which is 20% above median its 10-year median of 36.92 and 70.9% above the Conglomerates industry median of 25.96. Compass Diversified Holdings' overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Compass Diversified Holdings (CODI), the current Gross Margin % is 44.36% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Compass Diversified Holdings (CODI) Overvalued in 2026?
Based on GuruFocus' analysis, Compass Diversified Holdings stock appears to be undervalued.
The current stock price of $10.41 is trading 50.5% below its estimated GF Value™ of $21.01.
GuruFocus considers Compass Diversified Holdings to be Possible Value Trap.
Key valuation signals for CODI:
Gross Margin %: 44.36% (20% above median its 10-year median of 36.92)
GF Value™: $21.01 vs. price of $10.41 (50.5% below fair value)
Industry Position: 70.9% above the Conglomerates median (#101 of 511)
No single metric tells the full story. See the CODI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and 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. Industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.
56GF Score
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