GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Compass Diversified Holdings (NYSE:CODI) » Definitions » Owner Earnings per Share (TTM)

CODI (Compass Diversified Holdings) Owner Earnings per Share (TTM) : -0.51 (As of Sep. 2024)


View and export this data going back to 2006. Start your Free Trial

What is Compass Diversified Holdings Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Compass Diversified Holdings's Owner Earnings per Share (TTM) ended in Sep. 2024 was $-0.51. It's Price-to-Owner-Earnings ratio for today is 0.


The historical rank and industry rank for Compass Diversified Holdings's Owner Earnings per Share (TTM) or its related term are showing as below:


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Compass Diversified Holdings was 276.97. The lowest was 2.20. And the median was 11.98.


CODI's Price-to-Owner-Earnings is not ranked *
in the Conglomerates industry.
Industry Median: 10.97
* Ranked among companies with meaningful Price-to-Owner-Earnings only.

Compass Diversified Holdings's Earnings per Share (Diluted) for the three months ended in Sep. 2024 was $0.08. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $0.55. It's PE Ratio (TTM) ratio for today is 43.18.

Compass Diversified Holdings's EPS without NRI for the three months ended in Sep. 2024 was $0.08. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was $-0.99. It's PE Ratio without NRI ratio for today is At Loss.


Compass Diversified Holdings Owner Earnings per Share (TTM) Historical Data

The historical data trend for Compass Diversified Holdings's Owner Earnings per Share (TTM) 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 Owner Earnings per Share (TTM) Chart

Compass Diversified Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.69 1.42 1.76 -1.36 2.51

Compass Diversified Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.63 2.51 0.68 -0.13 -0.51

Competitive Comparison of Compass Diversified Holdings's Owner Earnings per Share (TTM)

For the Conglomerates subindustry, Compass Diversified Holdings's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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's Price-to-Owner-Earnings Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Compass Diversified Holdings's Price-to-Owner-Earnings falls into.



Compass Diversified Holdings Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Compass Diversified Holdings's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 138
Depreciation, Depletion and Amortization 148
Change In Deferred Tax -12
5Y Average of Maintenance Capital Expenditure 34
Change In Working Capital -278
Shares Outstanding (Diluted Average) 76

1. Start with "Net Income" from income statement. Compass Diversified Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was $138 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Compass Diversified Holdings's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2024 was $148 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Compass Diversified Holdings's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2024 was $-12 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $34 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Compass Diversified Holdings's 5-Year Average Maintenance Capital Expenditure = $34 Mil

5. "Change In Working Capital" is from cashflow statement. Compass Diversified Holdings's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2024 was $-278 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Compass Diversified Holdings's Shares Outstanding (Diluted Average) for the months ended in Sep. 2024 was 75.645 Mil.

Compass Diversified Holdings's Onwer Earnings Per Share for Sep. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 138.324 +147.515+-11.87
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-34.218032002245+-278.292)/75.645
=-0.51

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=23.75/-0.51
=0

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Compass Diversified Holdings Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Compass Diversified Holdings's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Compass Diversified Holdings Business Description

Traded in Other Exchanges
Address
301 Riverside Avenue, Second Floor, Westport, CT, USA, 06880
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.
Executives
Patrick A Maciariello other: See Remarks (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Simon Heidi Locke other: See Remark (a) 26 KENSETT LANE, DARIEN CT 06820
Ryan J Faulkingham other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880
Larry L Enterline other: See Remark (a) 2709 WATER RIDGE PARKWAY, 2ND FLOOR, CHARLOTTE NC 28217
Teri Shaffer other: See Remark (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Nancy Mahon other: See Remark (a) C/O TPG PACE BENEFICIAL FINANCE CORP., 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Alexander S. Bhathal other: See Remark (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Gordon M Burns other: See Remark (a) AZTAR CORPORATION, 2390 E. CAMELBACK RD., SUITE 400, PHOENIX AZ 85016
Elias Sabo other: See Remarks (a) 2709 WATER RIDGE PARKWAY, 2ND FLOOR, CHARLOTTE NC 28217
Harold S Edwards other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880
James Bottiglieri other: See Remark (a) 2187 ATLANTIC ST, STAMFORD CT 06902
Compass Group Investments, Ltd. 10 percent owner BELVEDERE BUILDING, 69 PITTS BAY ROAD, HAMILTON HM 08 D0 00000
Sarah Gaines Mccoy other: See Remark (a) 6300 MERRILL CREEK PARKWAY, SUITE B, EVERETT WA 98203-5862
C Sean Day other: See Remark (a)
D Eugene Ewing other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880