CompoSecure (CMPO) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: 1.54%
• Average Volume (3M): 989.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -34.58%
• EPS Growth: -240.25%
• Country: US
• Employees: 1,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.25
• Shares Outstanding: 102,378,640
• 10 Day Avg. Volume: 768,928
• 30 Day Avg. Volume: 989,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 5.37
• Enterprise Value/Gross Profit: 10.51
• Enterprise Value/Ebitda: -16.55
• 1Y Price Target: $19.00
• Price Target Upside: -6.73% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: $19.00 ▼(-6.73% Downside)

CompoSecure's overall score is driven by strong technical indicators and positive earnings call sentiment, indicating growth potential. However, financial performance concerns, particularly profitability and valuation issues, weigh heavily on the score.

Positive Factors

Revenue Growth

The consistent revenue growth, particularly in domestic markets, underscores CompoSecure's strong market position and product demand, supporting long-term financial health.

Operational Efficiency

Improved EBITDA reflects operational efficiencies and effective cost management, enhancing profitability and competitive advantage over time.

Strategic Market Positioning

High-profile customer program launches strengthen CompoSecure's market presence and leverage partnerships, driving future growth and innovation.

Negative Factors

Profitability Challenges

Ongoing profitability issues, despite revenue growth, suggest potential inefficiencies or rising costs, which could hinder long-term financial stability.

International Sales Decline

Significant decline in international sales highlights market challenges and limits growth potential outside domestic markets, affecting diversification and revenue stability.

High Leverage

High leverage and negative equity pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting future operations.

CompoSecure Business Overview & Revenue Model

Company Description

CompoSecure, Inc. manufactures and designs metal, plastic, composite ID, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which comprise the Arculus Key card Cold Storage hardware device and companion Arculus Wallet mobile App to keep the Private Key in the Arculus Key card highly secure and store cryptocurrency and digital assets. It serves financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists. The company was founded in 1910 and is based in Somerset, New Jersey.

How the Company Makes Money

CompoSecure makes money primarily through the sale of its high-end metal payment cards to financial institutions, including banks and credit unions, which then offer these cards to their customers as part of their premium account packages. Additionally, the company generates revenue through associated services such as card personalization and fulfillment. CompoSecure's partnerships with major payment networks and financial institutions are significant contributors to its earnings, allowing it to access a wide market and maintain strong business relationships. The company also benefits from the growing trend of digital payment solutions, offering products that enhance transaction security, which contributes to its revenue streams.

CompoSecure Financial Statement Overview

Summary

CompoSecure shows strong revenue growth and effective cash flow management, but faces significant challenges with profitability and financial stability, highlighted by negative equity and substantial leverage.

Income Statement

CompoSecure has shown consistent revenue growth over the years, with a notable increase from $243 million in 2019 to $420 million in 2024. However, despite the revenue growth, the company has faced challenges in profitability, as indicated by a net loss in 2024. Gross profit margins have remained strong, but the decline in net income and EBIT margin suggests potential inefficiencies or increased expenses.

Balance Sheet

The company's financial stability is concerning, with negative stockholders' equity and high total liabilities, indicating potential solvency issues. The debt-to-equity ratio is unfavorable due to negative equity, highlighting significant leverage. Although total assets have grown, the equity ratio remains negative, reflecting substantial financial risk.

Cash Flow

CompoSecure has demonstrated strong operating cash flow, with consistent growth in free cash flow over the years, indicating effective cash management. The operating cash flow to net income ratio is robust, suggesting efficient conversion of income into cash. However, the high level of financing cash flow indicates reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	267.82M	420.57M	390.63M	378.48M	267.90M	260.59M
Gross Profit	136.69M	219.23M	209.08M	219.64M	144.80M	132.63M
EBITDA	-86.80M	-50.52M	154.60M	167.29M	104.91M	93.87M
Net Income	-126.45M	-53.72M	19.24M	18.66M	3.15M	77.81M
Balance Sheet
Total Assets	317.30M	473.92M	201.04M	162.94M	131.35M	81.36M
Cash, Cash Equivalents and Short-Term Investments	4.81M	77.46M	41.22M	13.64M	21.94M	13.42M
Total Debt	0.00	201.64M	344.64M	367.61M	393.36M	255.89M
Total Liabilities	423.67M	617.36M	406.81M	454.94M	539.00M	273.91M
Stockholders Equity	-106.38M	-143.45M	-802.36M	-892.23M	-1.02B	-192.55M
Cash Flow
Free Cash Flow	61.68M	122.14M	93.37M	83.73M	73.00M	79.56M
Operating Cash Flow	66.60M	129.55M	104.31M	92.78M	77.80M	87.06M
Investing Cash Flow	-67.11M	-9.95M	-10.94M	-9.05M	-4.80M	-7.50M
Financing Cash Flow	-30.08M	-83.36M	-65.79M	-92.03M	-64.50M	-92.87M

CompoSecure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPO, the sentiment is Positive. The current price of 20.37 is above the 20-day moving average (MA) of 19.94, above the 50-day MA of 18.40, and above the 200-day MA of 14.04, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 47.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMPO.

CompoSecure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	80 Outperform	$3.25B	12.57	23.85%	0.66%	1.70%	684.20%
PRLB	77 Outperform	$1.19B	82.50	2.19%	―	-0.13%	-37.00%
IIIN	75 Outperform	$753.30M	24.36	8.87%	2.89%	9.44%	53.83%
MEC	65 Neutral	$278.56M	16.20	7.37%	―	-16.95%	66.04%
WOR	64 Neutral	$2.77B	26.06	11.50%	1.26%	-39.38%	175.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CMPO	61 Neutral	$2.09B	―	8.26%	1.54%	-34.58%	-240.25%

CompoSecure Corporate Events

CompoSecure Transfers Stock Listing to NYSE

On September 5, 2025, CompoSecure announced its decision to transfer the listing of its Class A Common Stock from Nasdaq to the New York Stock Exchange (NYSE), effective September 23, 2025. The move is expected to enhance visibility for investors, while the company’s redeemable warrants will remain listed on Nasdaq.

CompoSecure Announces Record Q2 2025 Financial Results

On August 7, 2025, CompoSecure announced record financial results for the second quarter of 2025, driven by strong domestic demand and growth in both traditional banking and fintech sectors. The company reported a 10% increase in Non-GAAP net sales and improved gross margins, attributed to the CompoSecure Operating System. New customer programs and partnerships, including the launch of the Coinbase One Card, highlight CompoSecure’s innovative product offerings and strategic market positioning. The company also raised its full-year 2025 guidance, reflecting its continued operational and commercial momentum.

CompoSecure Appoints Two New Independent Directors

On July 12, 2025, CompoSecure, Inc. entered into an Amended and Restated Waiver Agreement to facilitate the appointment of two new independent directors, Kevin M. Moriarty and Rebecca K. Corbin Loree, to its Board of Directors. This strategic move is aimed at enhancing the company’s strategic oversight and supporting its long-term value creation efforts. The new directors bring significant financial and capital markets expertise, which is expected to strengthen CompoSecure’s market leadership and drive disciplined growth.

CompoSecure CFO Retirement Announcement and Financial Outlook

On June 11, 2025, CompoSecure announced the upcoming retirement of its Chief Financial Officer, Tim Fitzsimmons, who will step down once a successor is appointed, expected by the second half of 2025. Fitzsimmons will continue as a consultant until January 2027 to ensure a smooth transition. The company reaffirmed its full-year 2025 guidance, projecting mid-single-digit growth in Consolidated Net Sales and Pro Forma Adjusted EBITDA, indicating stability and confidence in its financial outlook.