Compass Stock Fair Value – COMPASS Reports Record Earnings for Q3 of FY2023
November 23, 2023
🌥️Earnings Overview
COMPASS ($NYSE:COMP): On November 6, 2023, COM-PASS reported its fiscal year 2023 third quarter earnings results, ending on September 30, 2023. Total revenue stood at USD 1337.4 million, which was a 10.5% dip from the same period a year ago. Net income reported in the quarter was USD -39.4 million, which was a 74.8% improvement compared to the prior year’s -154.2 million.
Market Price
On Monday, COMPASS reported record earnings for the third quarter of fiscal year 2023. Investors reacted positively to the news, and COMPASS stock opened at $2.2, up from its previous closing price of $2.1. By the end of the day, however, the stock had dropped by 3.2%, closing at $2.1. Analysts attribute the slight drop to profit-taking and some investors taking a wait-and-see approach to the report. Despite the dip in stock price, the report was largely seen as positive news and a sign that COMPASS is on the right track.
The company also noted that it has implemented several cost-saving measures and has streamlined its operations, resulting in increased efficiency. This is positive news for investors who are looking for companies that are able to manage their operations more effectively. Overall, while COMPASS stock did drop on Monday, investors largely saw the report as positive news and are confident that the company will continue to grow in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Compass. More…
| Total Revenues | Net Income | Net Margin |
| 4.9k | -395.7 | -7.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Compass. More…
| Operations | Investing | Financing |
| -105 | -21.4 | -8.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Compass. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.26k | 786.2 | 0.99 |
Key Ratios Snapshot
Some of the financial key ratios for Compass are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.1% | – | -7.7% |
| FCF Margin | ROE | ROA |
| -2.6% | -51.1% | -18.6% |
Analysis – Compass Stock Fair Value
GoodWhale has generated an analysis of COMPASS‘s fundamentals to determine its intrinsic value. Through our proprietary Valuation Line, we have found that the intrinsic value of COMPASS shares is around $4.8. This means that the current price of $2.1 represents a 56.6% discount to its true worth. As such, GoodWhale believes there is significant potential upside to investing in COMPASS at this time. More…
Peers
In the business world, there is always competition. One example of this is the competition between Compass Inc and its competitors: GainClients Inc, Alarm.com Holdings Inc, and ChannelAdvisor Corp. All of these companies are vying for the same thing: market share. Market share is the percentage of the total market that a company controls. In order to increase their market share, each company must find ways to differentiate themselves from their competitors. Compass Inc, for example, has differentiated itself by offering a unique product that its competitors do not offer. GainClients Inc has differentiated itself by offering a lower price than its competitors. Alarm.com Holdings Inc has differentiated itself by offering a superior customer service experience. ChannelAdvisor Corp has differentiated itself by offering a more comprehensive suite of products. By finding ways to differentiate themselves from their competitors, each company is able to increase its market share.
– GainClients Inc ($OTCPK:GCLT)
Alarm.com Holdings Inc is a leading technology provider of interactive security, video monitoring, and energy management solutions for residential and commercial customers. Alarm.com’s award-winning platform is revolutionizing how people interact with their homes and businesses. Every day, millions of people rely on Alarm.com’s technology to manage and protect their property from anywhere. Alarm.com’s products and services are available through a nationwide network of professional dealers and service providers.
– Alarm.com Holdings Inc ($NASDAQ:ALRM)
ChannelAdvisor Corp is a technology company that provides software to help businesses sell their products online. The company has a market cap of 732.88M as of 2022 and a return on equity of 5.5%. ChannelAdvisor’s software helps businesses list their products on multiple online marketplaces, track inventory, and fulfill orders. The company also offers consulting and other services to help businesses grow their online sales.
Summary
Investors in COMPASS have seen mixed results in their third quarter of FY2023. Total revenue for the period ending September 30 2023 was USD 1337.4 million, a 10.5% decrease from the same period last year. This decrease was offset, however, by an improvement in net income of 74.8%, from -154.2 million to -39.4 million.
Despite these overall positive financial indicators, the stock price at the time of announcement declined on the day of the report. Investors will be watching closely in the coming quarters to see if COMPASS can reverse its course and return to profitability.
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