Is Compass Diversified Holdings (CODI-PB) Halal?

NYSE Industrials United States $893M
✗ NOT HALAL
Confidence: 90/100
Compass Diversified Holdings (CODI-PB) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 183.5% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Compass Diversified Holdings operates in the Industrials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 183.5%
/ 30%
6.2%
/ 30%
21.4%
/ 30%
0.11%
/ 5%
✗ NOT HALAL
DJIM 183.5%
/ 33%
6.2%
/ 33%
21.4%
/ 33%
0.11%
/ 5%
✗ NOT HALAL
MSCI 53.8%
/ 33%
1.8%
/ 33%
6.3%
/ 33%
0.11%
/ 5%
✗ NOT HALAL
S&P 183.5%
/ 33%
6.2%
/ 33%
21.4%
/ 33%
0.11%
/ 5%
✗ NOT HALAL
FTSE 53.8%
/ 33%
1.8%
/ 33%
6.3%
/ 50%
0.11%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
21.8
EPS
$0.86
Dividend Yield
1047.0%
P/B Ratio
-39.5
EV/EBITDA
20.8
EV: $4.0B
Revenue
$1.9B
Growth: -5.1%
Beta
1.0
Average volatility
Current Ratio
2.4

Profitability

Gross Margin 43.5%
Operating Margin 11.0%
Net Margin -12.1%
Return on Equity (ROE) -53.7%
Return on Assets (ROA) 1.1%

Cash Flow & Balance Sheet

Operating Cash Flow-$7M
Free Cash Flow-$51M
Total Debt$1.9B
Debt-to-Equity357.0
Current Ratio2.4
Total Assets$3.0B

Price & Trading

Last Close$18.46
50-Day MA$20.04
200-Day MA$19.17
Avg Volume18K
Beta1.0
52-Week Range
$12.75
$23.50

About Compass Diversified Holdings (CODI-PB)

CEO
Mr. Elias Joseph Sabo
Employees
4,069
Sector
Industrials
Industry
Conglomerates
Country
United States
Exchange
NYSE
Market Cap
$893M
Currency
USD

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage, and middle market investments. It seeks to invest in leading industrial or branded consumer companies, textiles, Apparel and Luxury goods, trading companies and distributors, manufacturing, distribution, consumer discretionary, commercial services and supplies, consumer products, capital good, Leisure Product, consumer service, consumer staples, household durables, business services sector, infrastructure healthcare, safety & security, electronic components, food, and foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $80 million to$800 million and EBITDA starting from $10 million per annum. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have controlled and majority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Diversified was incorporated in 1998 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.

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Frequently Asked Questions

Is Compass Diversified Holdings (CODI-PB) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Compass Diversified Holdings is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Compass Diversified Holdings's debt ratio?

Compass Diversified Holdings's debt ratio is 183.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 53.8%.

What are Compass Diversified Holdings's key financial metrics?

Compass Diversified Holdings has a market capitalization of $893M, trailing P/E ratio of 21.8, and revenue of $1.9B. The company maintains a gross margin of 43.5% and a net margin of -12.1%. Return on equity stands at -53.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.