Breaking Down CompX International Inc. (CIX) Financial Health: Key Insights for Investors

You're looking at CompX International Inc. (CIX) and wondering if the recent financial momentum is built on a solid foundation, especially as broader market signals feel a little mixed. The direct takeaway is that their operational performance in 2025 has been defintely strong, driven by key product segments. The Q3 2025 earnings, released in early November, showed net sales climbing to $39.95 million, reflecting an 18.66% year-over-year growth, primarily fueled by higher demand in their Security Products and Marine Components segments, especially from government markets. Here's the quick math: for the nine months ended September 30, 2025, CompX International Inc. has already generated $120.59 million in sales, translating to a net income of $14.81 million. That's a clear signal of operational health, but we need to look closer at the gross margin trends and the concentration risk within those specific government contracts to see if this trajectory is a durable trend or just a near-term spike. This is where the real work starts.

Revenue Analysis

You need a clear picture of where CompX International Inc. (CIX) is actually making its money, especially after a challenging 2024. The direct takeaway is that revenue is rebounding strongly in 2025, primarily fueled by increased government-sector demand, pushing net sales for the first nine months to $120.6 million. The business remains a two-segment story, but the growth drivers are shifting.

CompX International Inc.'s revenue streams are straightforward, falling into two main segments: Security Products and Marine Components. The Security Products segment-which includes mechanical and electrical cabinet locks for industries like recreational transportation, postal services, and healthcare-has historically been the largest contributor. Plus, the vast majority of sales are generated right here in the United States, with some spillover into Canada and Mexico.

The year-over-year revenue growth shows a clear recovery from a soft 2024. For the full year 2024, net sales were $145.9 million, a decrease of 9.51% from 2023's $161.3 million. But look at the 2025 numbers: for the nine months ended September 30, 2025, net sales hit $120.6 million, a solid increase from $107.5 million in the comparable 2024 period. That's a growth rate of about 12.2% year-to-date. The trailing twelve months (TTM) revenue as of November 2025 is sitting at approximately $159.00 million, showing a positive trajectory.

Here's the quick math on the recent quarterly performance, which really shows the momentum:

• Q3 2025 Net Sales: $40.0 million (Up ~19% from Q3 2024's $33.6 million)
• Q2 2025 Net Sales: $40.3 million (Up ~12.3% from Q2 2024's $35.9 million)
• Q1 2025 Net Sales: $40.3 million (Up ~6.1% from Q1 2024's $38.0 million)

The significant change in the revenue streams is the resurgence of the government security market. In late 2024, a drop in sales to a major government security customer hurt the Security Products segment. To be fair, that's a risk with large, pilot-project-based contracts. However, the 2025 results show CompX International Inc. successfully navigated that, as Q1, Q2, and Q3 2025 growth was explicitly driven by higher sales in both the Security Products and Marine Components segments, particularly to the government markets. This diversification and renewed government focus is defintely a key point for any investor reviewing the company's financial health, which you can read more about in Breaking Down CompX International Inc. (CIX) Financial Health: Key Insights for Investors.

What this estimate hides is the precise percentage contribution of each segment for the full 2025 fiscal year, as that data is not yet public, but the trend is clear: the Marine Components segment, especially sales to the towboat and government markets, is stepping up to shoulder more of the growth alongside the core Security Products business.

Next step: Dig into the gross margins for each segment to see if the Marine Components growth carries the same profitability as the Security Products segment. Owner: Analyst team, by end of week.

Profitability Metrics

You're looking for a clear picture of CompX International Inc. (CIX)'s ability to turn sales into profit, and the 2025 year-to-date (YTD) figures show a mixed but generally strong performance. The short takeaway is that while the Gross Margin trails the industry, CompX's operational efficiency is excellent, allowing it to generate a higher Net Profit Margin than its peers.

For the nine months ended September 30, 2025, CompX International Inc. reported $120.6 million in Net Sales, translating to a YTD Operating Margin of 14.10% and a Net Profit Margin of 12.27%. This demonstrates effective cost control below the gross profit line, even as raw material costs remain a potential headwind. You need to watch the quarterly trends, though, as they tell a more nuanced story about cost management.

Gross, Operating, and Net Margins: A Deep Dive

Analyzing the quarterly data for 2025 reveals a clear trend in profitability. The company's Gross Profit Margin (revenue minus cost of goods sold) saw a notable sequential drop from Q1 to Q3, which suggests rising production costs or pricing pressure that the company couldn't fully pass on to customers. Still, the Operating Margin (earnings before interest and taxes, or EBIT, as a percentage of sales) and Net Profit Margin remain healthy, especially when compared to the broader industry.

• Gross Profit Margin: Fell from 30.27% in Q1 2025 to 27.50% in Q3 2025.
• Operating Profit Margin: Declined from a high of 14.64% in Q1 2025 to 12.00% in Q3 2025.
• Net Profit Margin: Dropped from 12.66% in Q1 2025 to 10.50% in Q3 2025.

Here's the quick math on the quarterly figures for the year. This is defintely a trend that needs close monitoring.

Operational Efficiency and Industry Benchmarks

When we look at operational efficiency-how well CompX International Inc. manages its costs beyond production (selling, general, and administrative expenses)-the picture is quite positive. The company's Trailing Twelve Months (TTM) Operating Margin is reported at 13.37%, which is slightly above the industry average of 13.19%. This suggests that while raw material and manufacturing costs (the Gross Margin issue) are a challenge, the company's overhead structure is lean and well-managed.

The TTM Net Profit Margin of 12.16% significantly outpaces the industry average of 10.25%. This is a crucial distinction. It means that for every dollar of sales, CompX International Inc. keeps more after all expenses, including taxes and interest, than the typical competitor. This superior net profitability is a strong indicator of financial health and pricing power in its niche markets, particularly in Security Products and Marine Components, where demand from government markets has been strong.

What this estimate hides is the potential impact of future interest rate changes, as the TTM data smooths out quarterly volatility. Still, the company is demonstrating an ability to convert sales into bottom-line profit more effectively than the average player. For a deeper look at who is betting on this performance, you can read Exploring CompX International Inc. (CIX) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

If you're looking at CompX International Inc. (CIX), the first and most striking thing you need to know about its financing is that the company is defintely a financial outlier. They essentially run a debt-free operation, which is a rare and powerful position in the Industrials sector.

As of late 2025, CompX International Inc. (CIX) carries $0.0 million in total debt, meaning both their long-term and short-term debt obligations related to borrowing are zero. This is a deliberate, conservative strategy that prioritizes financial stability over the potential, but riskier, returns of high leverage. It's a clean balance sheet, plain and simple.

Here's the quick math on their capital structure, based on the most recent 2025 data, contrasted with their industry peers:

• CompX International Inc. (CIX) Debt-to-Equity Ratio: 0%
• Security & Protection Services Industry Average: 0.56

A Debt-to-Equity (D/E) ratio measures how much a company is financing its assets with debt versus shareholder money (equity). CompX International Inc.'s 0% ratio is dramatically lower than the 0.56 average for the Security & Protection Services industry, and even further below the broader Industrials sector average of 0.88. This tells you they are not relying on external creditors to fund their growth; they are self-funding.

The company's capital structure is almost entirely equity-driven, with total shareholder equity standing at approximately $137.7 million as of the third quarter of 2025. This robust equity base, coupled with a cash and short-term investments balance of around $46.3 million, provides immense financial flexibility. They don't have to worry about interest rate hikes or refinancing risk, which is a major near-term risk for highly leveraged companies in this market cycle.

The total liabilities on the balance sheet are minimal, sitting at about $16.1 million in Q3 2025, which mostly consists of operational obligations like accounts payable, not debt. This debt-free status is not a fluke; the company has maintained this position for over five years, which eliminates any concern about recent debt issuances or refinancing activity.

Instead of debt financing, CompX International Inc. (CIX) balances its funding needs and growth by relying on internally generated cash flow and retained earnings. This strategy allows them to return significant capital to shareholders, as seen with the special cash dividend of $1.00 per share declared in August 2025, alongside their regular quarterly dividend of $0.30 per share. This is a strong signal of a management team confident in its cash generation and committed to shareholder returns, which you can explore further in Exploring CompX International Inc. (CIX) Investor Profile: Who's Buying and Why?

What this estimate hides is the opportunity cost. While a debt-free structure is low-risk, it can also mean missed opportunities for growth that could be funded cheaply with debt, especially if the return on invested capital (ROIC) is higher than the cost of borrowing. Still, for a conservative investor, the low leverage is a massive safety net.

Liquidity and Solvency

You want to know if CompX International Inc. (CIX) can meet its short-term obligations, and honestly, the answer is a resounding yes. The company's liquidity position is defintely a major strength, showing a fortress-like balance sheet as of the second quarter of 2025 (Q2 2025).

The core of this strength lies in its current and quick ratios (liquidity positions). The current ratio, which compares current assets to current liabilities, is exceptionally high at 7.49 for Q2 2025. Typically, an analyst looks for a ratio of 2.0 or higher. The quick ratio (or acid-test ratio), which excludes inventory, is also stellar at 5.20. This means CompX International Inc. could cover its immediate debts more than five times over without needing to sell a single piece of inventory. That's a huge margin of safety.

Here's the quick math on their working capital (Current Assets minus Current Liabilities) for Q2 2025:

• Current Assets (Jun '25): $107.6 million
• Current Liabilities (Jun '25): $14.37 million
• Working Capital: $93.23 million

Working capital trends show a significant surplus, which is exactly what you want to see for a manufacturer like CompX International Inc. (CIX). They are not just liquid; they are cash-rich, plus they are essentially debt-free, with total debt reported at $0.0.

The cash flow statements overview further confirms this financial health. For the third quarter of 2025 (Q3 2025), cash flow from operating activities (CFO) was a strong $6.26 million. This consistent, healthy cash generation is the engine that drives their capital allocation strategy.

Looking at the broader cash flow trends, we can map out how CompX International Inc. is using its cash. While the full nine-month 2025 statement isn't fully detailed in the snippets, the 2024 annual trends illustrate the company's priorities:

The financing cash flow is the clearest indicator of strength. The large negative number is not a concern; it's a deliberate capital return. CompX International Inc. declared a special cash dividend of $1.00 per share payable in August 2025, on top of its regular quarterly dividend of $0.30 per share. This is what a company does when it has more cash than it needs for operations and growth investment-it gives it back to you, the shareholder. The only potential liquidity concern is less of a risk and more of an opportunity cost: are they investing enough of that huge cash pile back into growth? But for now, their ability to pay bills is unquestionable. You can read more about this in Breaking Down CompX International Inc. (CIX) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking for a clear signal on CompX International Inc. (CIX), and the data from the 2025 fiscal year gives a mixed, but actionable, picture. The short answer is that CIX appears to be trading at a moderate relative valuation, but a deeper look at intrinsic value and cash flow suggests it may be overvalued, which is a key risk for a dividend stock.

As of November 2025, the stock is trading around $22.55, but it has had a rough ride, dropping 26.27% over the last 12 months. That kind of price volatility, especially with a 52-week range between $17.89 and $32.97, signals market uncertainty about its Mission Statement, Vision, & Core Values of CompX International Inc. (CIX). and future earnings power.

Is CompX International Inc. (CIX) Overvalued or Undervalued?

When we look at traditional valuation multiples, CompX International Inc. (CIX) seems reasonably priced compared to the broader market, which often carries much higher multiples. But, relative to its own intrinsic value, the stock looks defintely stretched. Here's the quick math on the key ratios:

• Price-to-Earnings (P/E) Ratio: At approximately 14.38x, CIX is below the S&P 500 average, which suggests it's not an expensive growth stock. This is a moderate multiple for an industrial company.
• Price-to-Book (P/B) Ratio: The P/B of 2.02x is quite healthy, indicating the market values the company at just over twice its net asset value, which is not excessive for a manufacturer.
• Enterprise Value-to-EBITDA (EV/EBITDA): The ratio stands at 9.5x. This metric, which is a clean view of value regardless of capital structure, is also in a reasonable range for the sector.

The problem is that a discounted cash flow (DCF) model-the gold standard for intrinsic value-suggests a fair value of only $18.17. Trading at a price around $23.17 against that fair value implies the stock is currently 27.5% Overvalued. Relative valuation is fine, but intrinsic value is a warning.

Dividend Health and Analyst View

The dividend is a major draw for CIX, boasting a trailing dividend yield of about 5.32%. However, you need to look past the yield to the payout ratio. While the earnings payout ratio is a manageable 76.54%, meaning earnings cover the dividend, the cash payout ratio is a high 183.3%. This means the dividend is not well covered by free cash flow, which is a major red flag for dividend sustainability down the line. You're getting a high yield, but you're paying for it with cash flow risk.

Analyst consensus is split. Technical indicators lean toward a Neutral or even a mid-term Sell signal, reflecting the recent downtrend. Conversely, some AI-driven analyses rate the stock as an Outperform, citing the strong balance sheet and attractive dividend yield. The lack of a strong consensus tells you that the market is still trying to figure out if the dividend and asset base are enough to offset the cash flow issues and recent price decline.

Your next step: Dive into the quarterly reports, specifically the cash flow statement, to see if the 183.3% cash payout ratio is a one-off event or a persistent trend.

Risk Factors

You're looking at CompX International Inc. (CIX) and seeing solid Q1 and Q2 2025 numbers-Net Sales of $40.3 million in both quarters, which is strong-but the core risks for this manufacturer are not going away. The biggest near-term challenge is managing customer concentration and the persistent external pressures of materials and global trade. We need to be defintely clear on where the financial vulnerabilities lie, even as the company shows growth.

The risks CIX faces are a blend of operational, financial, and strategic issues common in the components manufacturing space. While the company reported a healthy $10.6 million in Net Income for the first half of 2025 (H1 2025), a significant portion of its business is tied to a few large customers, particularly in the government sector. This is a classic concentration risk.

Here's the quick map of the most critical risks that could impact future earnings, as highlighted in their filings:

• Demand Volatility: Sudden drops in orders from key government security customers, as was seen in late 2024 when a pilot project didn't continue, causing sales dips.
• Raw Material Costs: Unpredictable pricing for core inputs like zinc, brass, aluminum, and steel, which directly impacts gross margin if costs cannot be fully passed on.
• Supply Chain Disruption: Global economic and political instability, including tariffs or conflicts, that can interrupt the flow of materials or production.

Operational and Strategic Risks from Segment Fluctuation

The operational risk is clearest in the two-segment structure: Security Products and Marine Components. The company's overall performance is highly sensitive to shifts in demand within these segments. For example, the strong Q2 2025 Net Sales of $40.3 million were driven by higher Security Products sales to the government security market and increased Marine Components sales to the towboat and government markets. This positive growth, however, masks the underlying instability of relying on specific government contracts, which can be non-recurring.

We see this volatility play out in the segment performance. The Marine Components segment has been a consistent driver of growth and improved gross margin, helping to boost Q1 2025 Operating Income to $5.9 million from $3.7 million in Q1 2024. But if the towboat market slows due to broader economic conditions, that key offset disappears. That's a single point of failure you need to watch.

Here is a snapshot of how the segments contributed to the first half of 2025:

External Headwinds and Mitigation

External risks are a constant for CompX International Inc. Price competition from low-cost manufacturing sources, particularly from places like China, forces CIX to constantly manage its cost of goods sold (COGS) to maintain its margin. Also, regulatory changes-especially new environmental, health, and safety (EHS) standards-could require capital expenditures for compliance, cutting into that $0.86 per share Net Income for H1 2025.

The company's primary mitigation strategy is implicit: diversification across two distinct segments and a focus on government/industrial markets that are less price-sensitive than consumer markets. They also rely on their ability to pass on raw material cost increases, though the success of this is not guaranteed. Another key defense is protecting their intellectual property (IP), which is crucial against low-cost competitors. You should track their success in maintaining their gross margin, as this is the best indicator of their ability to manage both material costs and competitive pricing pressure.

For a deeper dive into the valuation and strategic frameworks, you can read the full post: Breaking Down CompX International Inc. (CIX) Financial Health: Key Insights for Investors.

Growth Opportunities

You want to know where CompX International Inc. (CIX) is going, and the short answer is: their niche focus on government and high-end components is paying off right now. The company's financial health in 2025 is solid, driven by targeted sales in both their Security Products and Marine Components segments, which is a defintely smart strategy.

Here's the quick math: CompX International's trailing twelve months (LTM) revenue ending September 30, 2025, hit roughly $159.00 million, marking a 5.52% year-over-year growth. LTM net income was approximately $19.32 million, a modest 2.9% increase year-over-year. That growth isn't explosive, but it's consistent, and it shows their core business is stable even with raw material cost volatility.

Key Growth Drivers and Market Expansion

The primary engine for CompX International's near-term growth is clear: government-related contracts and the towboat market. In the first three quarters of 2025, higher sales to the government security market significantly boosted the Security Products segment. Also, the Marine Components segment saw a jump from sales to the towboat and government markets, plus improved gross margins. You're seeing the benefit of being a high-quality, domestic supplier in critical sectors.

What this estimate hides is the potential for a large, one-off government contract, like the pilot program for the United States Postal Service that drove security sales in the past. That kind of deal moves the needle fast. Their strategic focus is on products where durability and design are critical, not on competing with low-cost manufacturers from places like China.

• Focus on towboat and government marine sales.
• Increased government security market penetration.
• Higher gross margins in Marine Components.

Future Revenue and Earnings Outlook

Since CompX International Inc. doesn't have a deep bench of consensus analyst coverage, projecting future revenue means looking at historical trends. Analysts often model a long-term revenue growth rate around 5.5% for the company, which is a reasonable expectation given their historical performance. This suggests 2026 revenue could land around $167.7 million if the current LTM trend holds.

The real opportunity lies in capital allocation. In August 2025, the company declared a special cash dividend of $1.00 per share alongside the regular quarterly dividend of $0.30 per share. This signals a strong balance sheet and healthy cash flow, which is a great sign. They are committed to balancing investment in the business with returning capital to you, the stockholder. This is a disciplined approach to growth, not a reckless one.

Competitive Position and Strategic Edge

CompX International's competitive advantage isn't about being the cheapest; it's about being a reliable, diversified domestic manufacturer of engineered, quality components. Their products are designed for medium to high-end applications-think specialized locking systems for medical carts and high-performance marine components-where failure is simply not an option. This focus creates a moat (a sustainable competitive advantage) against generic competition.

Their strategy is simple: generate consistent, healthy cash flow through all economic cycles and maintain a strong balance sheet to continue investing. If you're looking for a deep dive into who is betting on this strategy, you should check out Exploring CompX International Inc. (CIX) Investor Profile: Who's Buying and Why?