The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Compass Diversified Holdings's Beneish M-Score or its related term are showing as below:
CODI'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.01 Med: -2.35 Max: -1.78
Current: -2.33
During the past 13 years, the highest Beneish M-Score of Compass Diversified Holdings was -1.78. The lowest was -3.01. And the median was -2.35.
Compass Diversified Holdings Beneish M-Score Related Terms
Compass Diversified Holdings Beneish M-Score 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: Beneish M-Score Comparison
For the Conglomerates subindustry, Compass Diversified Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Compass Diversified Holdings for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.3769
+
0.528 * 0.9634
+
0.404 * 1.0325
+
0.892 * 1.0086
+
0.115 * 0.8683
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.0611
+
4.679 * -0.038334
-
0.327 * 0.9661
=
-2.33
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(140.418 / (140.418 + 245.612))
/
(137.562 / (137.562 + 190.799))
=
0.363749
/
0.418935
=
0.8683
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(-227.181 - -159.996
-
46.432)
/
2963.844
=
-0.038334
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Compass Diversified Holdings has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.
Compass Diversified Holdings (CODI) has a Beneish M-Score of -2.33 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Compass Diversified Holdings and its competitors. According to the industry distribution chart, Compass Diversified Holdings ranks #354 out of 536 companies in the Conglomerates industry, placing it in the top 66%.
Is Compass Diversified Holdings' Beneish M-Score too high?
Compass Diversified Holdings' current Beneish M-Score is -2.33. Based on the distribution chart, Compass Diversified Holdings ranks #354 out of 536 companies in the Conglomerates industry, which is below the industry midpoint. 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' Beneish M-Score compare to MATW and AIAI?
According to the Conglomerates industry distribution chart, Compass Diversified Holdings ranks #354 out of 536 companies for Beneish M-Score. This places Compass Diversified Holdings in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Conglomerates company?
A good Beneish M-Score depends on the Conglomerates industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Compass Diversified Holdings and its competitors. Compass Diversified Holdings's current Beneish M-Score is -2.33. 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 Beneish M-Score is -2.33. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Compass Diversified Holdings (CODI), the current Beneish M-Score is -2.33 as of Jun. 28, 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:
Beneish M-Score: -2.33
GF Value™: $21.01 vs. price of $10.41 (50.5% below fair value)
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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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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