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EBITDA for CompoSecure Inc

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CMPO: CompoSecure Inc

CompoSecure, Inc. manufactures and designs metal, composite, and proprietary financial transaction cards in the United States and internationally. The company operates through two segments, Payment Ca...

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Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
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The following section summarizes insights on CompoSecure Inc's EBITDA:

Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 202460 M80 M100 M120 M140 M

Performance Summary
  • CompoSecure's latest twelve months ebitda is 116.8 million
  • CompoSecure's ebitda for fiscal years ending December 2020 to 2024 averaged 113.9 million.
  • CompoSecure's operated at median ebitda of 116.8 million from fiscal years ending December 2020 to 2024.
  • Looking back at the last 5 years, CompoSecure's ebitda peaked in December 2023 at 127.5 million.
  • CompoSecure's ebitda hit its 5-year low in December 2020 of 100.6 million.
  • CompoSecure's ebitda decreased in 2024 (116.8 million, -8.4%) and increased in 2020 (100.6 million, +5.3%), 2021 (101.4 million, +0.8%), 2022 (123.5 million, +21.8%), and 2023 (127.5 million, +3.2%).

Benchmarks

Metric Usage: EBITDA

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To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to EBITDA in the financials category include:

  • Policy Benefits - This item represents the benefits/dividends paid or payable to policyholders including Life, Accident & Health, Property & Casualty and Annuity policyholders.
  • Gains (Loss) on Currency Exchange - This item represents any gain (loss) that arises on exchanging one currency for another. Includes foreign currency fluctuation gains and losses; gain or (loss) from foreign currency forward contracts; gain or (loss) arising from translation of assets and liabilities; and denominated in foreign currencies to reporting currency
  • Net Income to Common Excl Extra Items - Represents the net income or loss available to common stockholders and is arrived after adjusting preferred stock dividends and other adjustments to net income to stockholders (cont. ops).
  • Reinsurance Payable - This item represents the premiums payable by an insurance company to another insurance company in respect of insurance ceded in order to reduce its overall risk.
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EBITDA

Income before interest, taxes, depreciation and amortization adjusted for certain one-time items.

Definition of EBITDA

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EBITDA for CompoSecure is calculated as follows:

Earnings Before Taxes [ -80.975 M ]
(+) Net Interest Expenses [ 16.632 M ]
(+) Non Operating Expenses [ 95.937 M ]
(+) Depreciation and Amortization [ 9.174 M ]
(+) Unusual Expenses [ 76.028 M ]

(=) EBITDA [ 116.8 M ]

EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization excluding unusual items. It is a commonly used metric in valuation as a proxy for operating profitability. EBITDA gives us a clearer picture of profitability when comparing companies with different capital structures. So why is it useful to use EBITDA and ignore interest, taxes, depreciation, and amortization when comparing the performance of different companies?

Difference in Interest Expense

Two companies that are otherwise similar may have different levels of debt. The company with higher debt will likely have higher interest expense and lower Net Income. Since EBITDA ignores interest expense, it is not directly affected by management’s financing decisions.

Difference in Taxes

The amount of a tax a company pays each year is determined by a wide range of factors that does not always reflect the profitability of the company since the taxes a company is subject to reflects factors like political jurisdictions, past loss carryforwards, research and development tax credits, and depreciation on capital assets to name a few.

Depreciation and Amortization

Two companies that are otherwise similar may purchase capital assets (machines, vehicles, buildings, etc.) at different times which can impact depreciation. Ignoring depreciation and amortization allows us to normalize income for these differences.

Unusual Items

Unusual items consist of income or expenses included in a company’s income statement from events, which are unusual and infrequent in nature.

EBITDA is most useful in ratios to benchmark profitability, growth, credit risk, and relative valution. Popular EBITDA benchmark metrics include ebitda margin, ebitda minus capex margin, ebitda growth, and ev / ebitda.


Click the link below to download a spreadsheet with an example EBITDA calculation for CompoSecure Inc below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-31.698 M418.3 M868.3 M1.712 B05001,0001,500

The chart above depicts the distribution of ebitda for companies operating in the Information Technology sector in the Developed economic region. Over 3,200 companies were considered in this analysis, and 3,073 had meaningful values. The average ebitda of companies in the sector is 47.315 M with a standard deviation of 176.2 M.

CompoSecure Inc's EBITDA of 116.8 M ranks in the 90.6% percentile for the sector. The following table provides additional summary stats:

EBITDA In The Information Technology Sector
Economic Risk RegionDeveloped
Total Constituents3,201
Included Constituents3,073
Min-58.249 M
Max1.685 B
Median0 K
Mean47.315 M
Standard Deviation176.2 M

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