The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Compass Diversified Holdings Pretax Margin % Related Terms
Compass Diversified Holdings Pretax 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: Pretax Margin % Comparison
For the Conglomerates subindustry, Compass Diversified Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's Pretax 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.
Compass Diversified Holdings (CODI) has a Pretax Margin % of -5.57% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Compass Diversified Holdings and its competitors. According to the industry distribution chart, Compass Diversified Holdings ranks #486 out of 548 companies in the Conglomerates industry, placing it in the top 88.7%.
Is Compass Diversified Holdings' Pretax Margin % too high?
Compass Diversified Holdings' current Pretax Margin % is -5.57%. Based on the distribution chart, Compass Diversified Holdings ranks #486 out of 548 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Compass Diversified Holdings has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Compass Diversified Holdings' Pretax Margin % compare to MATW and AIAI?
According to the Conglomerates industry distribution chart, Compass Diversified Holdings ranks #486 out of 548 companies for Pretax Margin %. This places Compass Diversified Holdings in the lower half of its industry. The industry median Pretax Margin % is 6.57. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Conglomerates company?
The median Pretax Margin % among Conglomerates companies is 6.57, based on 548 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Compass Diversified Holdings and its competitors. For the Conglomerates industry, the median Pretax Margin % is 6.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Diversified Holdings's current Pretax Margin % is -5.57%. 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 Pretax Margin % is -5.57%. Compass Diversified Holdings' overall GF Score™ is 51/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Compass Diversified Holdings (CODI), the current Pretax Margin % is -5.57% 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:
Pretax Margin %: -5.57%
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.
51GF Score
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