Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Compass Diversified HoldingsCODI +1.13%51 3-Year ROIIC % is 7.13 as of Dec. 2025, which is 7822% above its 10-year median of 0.09. GuruFocus rates CODI with a GF Score™ of 51/100 and a GF Value™ of $20.89 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 531 Conglomerates companies, Compass Diversified Holdings ranks better than 65.16% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Compass Diversified Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 7.13%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Compass Diversified Holdings 3-Year ROIIC % Related Terms
Compass Diversified Holdings 3-Year ROIIC % 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 FBYD, MATW, FIP: 3-Year ROIIC % Comparison
For the Conglomerates subindustry, Compass Diversified Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 42.4886 (Dec. 2025) - 73.046 (Dec. 2022) )
/
( 2717.254 (Dec. 2025) - 3145.614 (Dec. 2022) )
=
-30.5574
/
-428.36
=
7.13%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Compass Diversified Holdings (CODI) has a 3-Year ROIIC % of 7.13 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Compass Diversified Holdings and its competitors. This is 7822% above median its historical median of 0.09. According to the industry distribution chart, Compass Diversified Holdings ranks #185 out of 531 companies in the Conglomerates industry, placing it in the top 34.8%.
Is Compass Diversified Holdings' 3-Year ROIIC % too high?
Compass Diversified Holdings' current 3-Year ROIIC % of 7.13 is 7822% above median its 10-year median of 0.09. The Conglomerates industry median 3-Year ROIIC % is 1.60. Compass Diversified Holdings' value of 7.13 is 345.6% above this industry median. Based on the distribution chart, Compass Diversified Holdings ranks #185 out of 531 companies in the Conglomerates industry, which is above the industry midpoint. 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' 3-Year ROIIC % compare to FBYD and MATW?
According to the Conglomerates industry distribution chart, Compass Diversified Holdings ranks #185 out of 531 companies for 3-Year ROIIC %. This puts Compass Diversified Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 1.60. Compass Diversified Holdings' value of 7.13 is 345.6% above this benchmark. While the company's 10-year median is 0.09 vs. the industry median of 1.60, 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 3-Year ROIIC % for a Conglomerates company?
The median 3-Year ROIIC % among Conglomerates companies is 1.60, based on 531 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Compass Diversified Holdings's current 3-Year ROIIC % of 7.13 is 345.6% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Compass Diversified Holdings and its competitors. For the Conglomerates industry, the median 3-Year ROIIC % is 1.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Diversified Holdings's current 3-Year ROIIC % is 7.13, which is 7822% above median its own 10-year median of 0.09. 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 $20.89, compared to a current price of $9.86 — trading 52.8% below its estimated fair value. The current 3-Year ROIIC % is 7.13, which is 7822% above median its 10-year median of 0.09 and 345.6% above the Conglomerates industry median of 1.60. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Compass Diversified Holdings (CODI), the current 3-Year ROIIC % is 7.13 as of Dec. 2025. 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 $9.86 is trading 52.8% below its estimated GF Value™ of $20.89.
GuruFocus considers Compass Diversified Holdings to be Possible Value Trap.
Key valuation signals for CODI:
3-Year ROIIC %: 7.13 (7822% above median its 10-year median of 0.09)
GF Value™: $20.89 vs. price of $9.86 (52.8% below fair value)
Industry Position: 345.6% above the Conglomerates median (#185 of 531)
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
Get the complete analysis for CODI
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CODI has been successfully added to your 
