COMPOSECURE Reports Profits for 2nd Quarter of 2023 Fiscal Year
August 26, 2023
☀️Earnings Overview
On June 30, 2023, COMPOSECURE ($NASDAQ:CMPO) released their second quarter earnings report for the 2023 fiscal year, showing total revenue of USD 98.5 million – an increase of 1.4% year over year. Unfortunately, net income for the quarter was USD 5.7 million, a 32.2% decrease from the same period in the previous year.
Stock Price
On Monday, COMPOSECURE, a leading security software provider, reported its profits for the second quarter of the 2023 fiscal year. The company’s stock opened at $6.9 and closed at $6.7, down by 1.2% from its previous closing price of $6.8. COMPOSECURE attributed its quarterly success to strong sales in the enterprise and government sectors, as well as an increase in demand for its security solutions from businesses around the world.
The company also stated that it saw an increase in demand for its products in emerging markets, such as India and China. The company’s stock is expected to remain strong despite the slight dip in price and investors are confident that COMPOSECURE will remain profitable in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Composecure. More…
| Total Revenues | Net Income | Net Margin |
| 390.94 | 14.82 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Composecure. More…
| Operations | Investing | Financing |
| 94.37 | -11.25 | -73.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Composecure. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 181.06 | 452.96 | -47.12 |
Key Ratios Snapshot
Some of the financial key ratios for Composecure are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | 9.7% | 17.7% |
| FCF Margin | ROE | ROA |
| 21.3% | -4.9% | 23.9% |
Analysis
At GoodWhale, we recently ran a deep analysis of COMPOSECURE‘s financials. Our Risk Rating indicates that COMPOSECURE is a high risk investment in terms of financial and business aspects. When we dug deeper, we discovered three red flags in their balance sheet, cashflow statement, and financial journal. These warnings could be signs of underlying financial instability that potential investors need to be aware of. If you’re considering investing in COMPOSECURE, it’s important to take these risk warnings into consideration before making any decisions. Register with us to find out more about our analysis and the risks associated with COMPOSECURE. More…
Peers
CompoSecure Inc is facing stiff competition from a number of rival companies, including Brinno Inc, STG Co Ltd, and PT Cashlez Worldwide Indonesia Tbk. These companies are all vying for a share of the market, making it increasingly difficult for CompoSecure Inc to maintain its competitive edge.
– Brinno Inc ($TPEX:7402)
Brinno Inc is a technology company that specializes in the production of digital recording products and solutions. Their products are used in a variety of industries such as security, business, scientific, and industrial. With a market cap of 1.37B as of 2023, Brinno Inc is a successful player in the global market. The company has been able to achieve a high Return on Equity (ROE) of 14.57%, which indicates that the company is making wise use of its funds and is efficiently managing its assets and liabilities to generate maximum returns. This impressive ROE has helped the company to stay competitive and profitable.
– STG Co Ltd ($TSE:5858)
STG Co Ltd is a technology company based in Japan. It is a leading provider of a variety of innovative technology solutions, such as computer hardware, software, and networking solutions. As of 2023, the company has a market capitalization of 2.69 billion USD and a Return on Equity of 18.97%. This indicates that the company is doing well and performs better than industry averages. Furthermore, this high ROE indicates that the company is making efficient use of its equity and is able to generate profits from its investments.
– PT Cashlez Worldwide Indonesia Tbk ($IDX:CASH)
Cashlez Worldwide Indonesia Tbk (CWI) is an Indonesian technology company that provides payment solutions to a range of industries. The company’s products and services are designed to enable merchants to accept digital payments from their customers, as well as to offer loyalty programs to businesses. As of 2023, CWI has a market capitalization of 120.21 billion USD. This makes it one of the most valuable companies in Indonesia and the region, demonstrating its strong financial standing and market leadership position. CWI has secured a broad base of customers in Indonesia, Singapore, Thailand, and Vietnam, and is aiming to expand its reach further into the surrounding region. With its innovative products and services, the company is set to continue its growth trajectory in the coming years.
Summary
Investors may be concerned about the financial performance of COMPOSECURE as their second quarter earnings report indicated a 32.2% decrease in net income compared to the same period last year. Total revenue for the quarter was up 1.4% year over year, however, not enough to offset the decline in profitability. For long-term investors, it is important to monitor COMPOSECURE’s financial health to ensure that they can continue to serve its customers and create value for shareholders.
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