CompoSecure, Inc. (CMPO) Bundle
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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