Published on 31 Mar 2024 on Simply Wall St. via Yahoo Finance

Loss-Making Compass Diversified (NYSE:CODI) Set To Breakeven

With the business potentially at an important milestone, we thought we'd take a closer look at Compass Diversified's (NYSE:CODI) future prospects. Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. On 31 December 2023, the US$1.8b market-cap company posted a loss of US$124m for its most recent financial year. The most pressing concern for investors is Compass Diversified's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Compass Diversified

According to the 6 industry analysts covering Compass Diversified, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$74m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 112% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.