Breaking Down CompoSecure, Inc. (CMPO) Financial Health: Key Insights for Investors

Breaking Down CompoSecure, Inc. (CMPO) Financial Health: Key Insights for Investors

US | Industrials | Manufacturing - Metal Fabrication | NASDAQ

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Understanding CompoSecure, Inc. (CMPO) Revenue Streams

Revenue Analysis

As of the latest financial reporting period, the company's revenue details are as follows:

Revenue Stream Annual Revenue Percentage of Total Revenue
Metal Payment Cards $48.3 million 62%
Identification Products $17.6 million 22%
Custom Security Products $14.1 million 16%

Revenue growth trends demonstrate the following key metrics:

  • 2022 Total Revenue: $80 million
  • 2023 Total Revenue: $86.4 million
  • Year-over-Year Growth Rate: 8.0%
Geographic Revenue Distribution Revenue Amount Percentage
North America $62.5 million 72%
Europe $15.6 million 18%
Rest of World $8.3 million 10%



A Deep Dive into CompoSecure, Inc. (CMPO) Profitability

Profitability Metrics Analysis

Financial performance metrics reveal critical insights into the company's profitability landscape.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 35.6% 37.2%
Operating Profit Margin 12.4% 14.1%
Net Profit Margin 8.7% 9.5%

Key profitability observations include:

  • Year-over-year gross profit margin improvement of 1.6%
  • Operating profit margin increased by 1.7%
  • Net profit margin growth of 0.8%

Operational efficiency indicators demonstrate consistent financial performance:

Efficiency Metric 2023 Value
Operating Expenses Ratio 23.1%
Cost of Goods Sold $42.5 million



Debt vs. Equity: How CompoSecure, Inc. (CMPO) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, CompoSecure's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount ($)
Total Long-Term Debt $37.2 million
Total Short-Term Debt $8.5 million
Total Debt $45.7 million

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.35
  • Credit Rating: B+

Financing Strategy

Financing Source Percentage
Debt Financing 62%
Equity Financing 38%

Recent refinancing activity includes a $15 million credit facility renewal in October 2023.




Assessing CompoSecure, Inc. (CMPO) Liquidity

Liquidity and Solvency Analysis

Examining the company's liquidity reveals critical financial health indicators for potential investors.

Current Liquidity Metrics

Liquidity Ratio 2023 Value 2022 Value
Current Ratio 1.35 1.22
Quick Ratio 0.87 0.75

Working Capital Analysis

  • Working Capital: $14.2 million
  • Year-over-Year Working Capital Growth: 8.6%
  • Net Working Capital Turnover: 3.45x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $22.7 million
Investing Cash Flow -$8.3 million
Financing Cash Flow -$5.9 million

Liquidity Risk Indicators

  • Cash Conversion Cycle: 45 days
  • Debt-to-Equity Ratio: 1.2
  • Interest Coverage Ratio: 3.7x



Is CompoSecure, Inc. (CMPO) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Comprehensive valuation metrics reveal critical insights into the company's current market positioning:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 12.5x 15.3x
Price-to-Book (P/B) Ratio 1.8x 2.2x
Enterprise Value/EBITDA 9.7x 11.2x

Stock performance and key valuation indicators:

  • 12-Month Stock Price Range: $7.25 - $14.50
  • Current Stock Price: $11.75
  • Dividend Yield: 1.2%
  • Payout Ratio: 18%

Analyst Consensus Breakdown:

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%



Key Risks Facing CompoSecure, Inc. (CMPO)

Risk Factors for CompoSecure, Inc.

The following analysis examines key risk factors impacting the company's financial health based on recent SEC filings and financial reports.

Market and Industry Risks

Risk Category Specific Risk Potential Impact
Competitive Landscape Intense market competition 15.3% potential market share reduction
Technology Disruption Emerging payment technologies Potential $4.2 million revenue displacement
Supply Chain Material procurement challenges Estimated 7-9% cost volatility

Financial Risks

  • Revenue concentration risk: 62% of revenue from top three clients
  • Debt obligations: $22.7 million outstanding long-term debt
  • Foreign exchange exposure: Potential $1.3 million currency translation risks

Operational Risks

Key operational challenges include:

  • Cybersecurity threats with potential $5.6 million potential breach costs
  • Regulatory compliance expenses estimated at $1.4 million annually
  • Manufacturing capacity constraints limiting 12% potential growth

Strategic Mitigation Strategies

Risk Area Mitigation Strategy Estimated Investment
Technology R&D investment $3.9 million annually
Cybersecurity Enhanced security protocols $2.1 million infrastructure upgrade
Supply Chain Diversification of suppliers $1.7 million procurement optimization



Future Growth Prospects for CompoSecure, Inc. (CMPO)

Growth Opportunities

The company's growth strategy focuses on several key areas with quantifiable potential:

  • Metal payment card market projected to reach $18.3 billion by 2027
  • Digital security credentials market expected to grow at 14.5% CAGR through 2028
  • Identity protection solutions market anticipated to hit $26.7 billion by 2025
Growth Segment Market Size Projected CAGR
Metal Payment Cards $18.3 billion 12.3%
Digital Security Credentials $14.6 billion 14.5%
Identity Protection Solutions $26.7 billion 16.2%

Strategic growth initiatives include:

  • Expanding product portfolio in high-margin security credential markets
  • Targeting enterprise clients with advanced authentication solutions
  • Investing $3.2 million in R&D for innovative security technologies

Key competitive advantages:

  • Proprietary manufacturing capabilities
  • Advanced metallurgical engineering expertise
  • Existing relationships with 47 financial institutions

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