Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Compass Diversified Holdings's 3-Year RORE % for the quarter that ended in Mar. 2026 was -16.01%.
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Compass Diversified Holdings 3-Year RORE % Related Terms
Compass Diversified Holdings 3-Year RORE % 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.
For the Conglomerates subindustry, Compass Diversified Holdings's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Compass Diversified Holdings (CODI) has a 3-Year RORE % of -16.01 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Compass Diversified Holdings and its competitors. According to the industry distribution chart, Compass Diversified Holdings ranks #380 out of 543 companies in the Conglomerates industry, placing it in the top 70%.
Is Compass Diversified Holdings' 3-Year RORE % too high?
Compass Diversified Holdings' current 3-Year RORE % is -16.01. Based on the distribution chart, Compass Diversified Holdings ranks #380 out of 543 companies in the Conglomerates industry, which is below 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 RORE % compare to FBYD and MATW?
According to the Conglomerates industry distribution chart, Compass Diversified Holdings ranks #380 out of 543 companies for 3-Year RORE %. This places Compass Diversified Holdings in the lower half of its industry. The industry median 3-Year RORE % is 6.82. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Conglomerates company?
The median 3-Year RORE % among Conglomerates companies is 6.82, based on 543 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Compass Diversified Holdings and its competitors. For the Conglomerates industry, the median 3-Year RORE % is 6.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Diversified Holdings's current 3-Year RORE % is -16.01. 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 $20.91, compared to a current price of $10.06 — trading 51.9% below its estimated fair value. The current 3-Year RORE % is -16.01. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Compass Diversified Holdings (CODI), the current 3-Year RORE % is -16.01 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 $10.06 is trading 51.9% below its estimated GF Value™ of $20.91.
GuruFocus considers Compass Diversified Holdings to be Possible Value Trap.
Key valuation signals for CODI:
3-Year RORE %: -16.01
GF Value™: $20.91 vs. price of $10.06 (51.9% 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
Get the complete analysis for CODI
3-Year RORE % 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 
