Is COMPASS, INC. a Quality Business?
Analyzing business fundamentals using proven investment principles
Weak fundamentals with mixed indicators requiring careful analysis
About COMPASS, INC.
Compass Inc. is an American real estate technology company headquartered in New York City that operates a real estate brokerage platform. The company recruits and supports real estate agents with technology tools, marketing support, and back-office services, and generates revenue by taking a share of the commissions earned by its affiliated agents on residential real estate transactions.
📚 How We Measure Business Quality
The Zyberno Score answers one question: "Is this a quality business worth owning?"
We analyze 16 fundamental metrics across four key dimensions, using principles from
Warren Buffett, Benjamin Graham, Peter Lynch,
and Charlie Munger. Each category is worth 25 points for a total of 100.
This score measures business quality only — not whether the stock is cheap, what return you'll get, or when to buy. For that, see the Valuation Trilogy below.
🎯 Recent Earnings Momentum
A separate, shorter-horizon signal — not part of the long-term quality score above. Standardized Unexpected Earnings (SUE) measures how far COMP's latest quarter beat or missed its own seasonal earnings trend.
View COMP's full earnings-surprise history and what this signal means →
💡 Quality Is Only Half the Picture
A high quality score means COMP shows strong business fundamentals.
But even the best business can be a poor investment at the wrong price.
As Warren Buffett says: "Price is what you pay, value is what you get."
To complete your analysis, examine our Valuation Trilogy:
📈 Price Action Check
Market trend context — not part of the Zyberno Score
The market has been actively rewarding COMP over the past year. Strong momentum on a quality business usually means the story is already being recognised — check the valuation signals above before paying up. Full momentum analysis →
Conclusion: Is COMP a Good Stock?
According to Zyberno's analysis, COMPASS, INC. (COMP) is a Weak Business, earning a Zyberno Score of 37/100.
What drives COMP's score
Zyberno's analysis of COMP's fundamentals identifies the following key drivers. An ROE of 3.6% falls below the 10% minimum, indicating weak returns on shareholders' capital. ROIC of -4.6% raises questions about capital allocation efficiency. A net margin of 0.6% is thin, leaving limited buffer against revenue shortfalls. A debt-to-equity ratio of 1.31x is high, indicating significant financial leverage that amplifies both gains and risks. An interest coverage ratio of -0.8x indicates limited margin above debt obligations — a potential concern. A free cash flow margin of 0.1% is thin, limiting the cash available for growth or shareholder returns. Revenue has grown at approximately 18.7% annually over the past five years, reflecting strong business momentum. A Piotroski F-Score of 5/9 is mixed, with some positive and some negative financial health signals.
According to Zyberno's valuation model, at its current price of $10.97, COMP appears to be significantly overvalued compared to an estimated intrinsic value per share of $0.65, with a negative margin of safety of -100.0%. Value investors would typically wait for a better entry price. Based on current pricing and fundamentals, Zyberno's model estimates a 5-year annual return of -31.8%.
Zyberno's score and valuation reflect the direct output of the model — business quality from fundamentals, margin of safety from owner earnings, Brina Gap from the reverse DCF. The numbers are not adjusted toward the current price, analyst ratings, or market sentiment. The score measures the quality of the business. The valuation measures the price you pay for it.
Zyberno Verdict
According to Zyberno's model, COMPASS, INC. (COMP) is not a buy at current price — a Weak Business (37/100) trading above estimated intrinsic value with a Margin of Safety of -100.0%.
❓ Frequently Asked Questions
What does COMP's Zyberno Score of 37/100 mean?
According to Zyberno's scoring model, a score of 37/100 places COMPASS, INC. in the Weak Business category — weak fundamentals with mixed indicators requiring careful analysis. Zyberno's model scores 75–100 as excellent, 65–74 as good, 50–64 as average, 30–49 as below average, and below 30 as poor, based on the investment frameworks of Buffett, Graham, Lynch, and Munger. Note that a high quality score measures business fundamentals, not whether the stock is currently priced attractively — for that, see the margin of safety analysis.
What makes a stock "high quality"?
A high-quality stock typically exhibits: strong returns on equity and invested capital (indicating competitive advantages), healthy profit margins, low debt levels, ample liquidity, consistent cash flow generation, and sustainable growth. We analyze 16 key metrics across four categories - Profitability (ROE, ROIC, margins), Financial Strength (debt, liquidity, coverage), Cash Flow Quality (FCF, OCF vs earnings), and Growth & Consistency (revenue/profit trends, Piotroski score) - drawing from the investment philosophies of Buffett, Graham, Lynch, and Munger.
How is the quality score different from a stock rating?
Our quality score measures business fundamentals - how well the company operates, generates profits, and maintains financial health. Unlike analyst "buy/sell" ratings, we don't tell you whether to purchase the stock. A company can have excellent quality (great business) but poor investment potential (if overpriced), or vice versa. For valuation analysis, see our Margin of Safety page.
Why do you use Owner Earnings instead of regular earnings?
Owner Earnings, a concept popularized by Warren Buffett, represents the true cash available to shareholders after maintaining the business. Unlike accounting earnings, which can be manipulated through depreciation schedules and accruals, Owner Earnings = Operating Cash Flow minus Maintenance Capital Expenditures. This gives a clearer picture of what a business actually generates for its owners. Learn more about COMP's Owner Earnings.
How often is the quality score updated?
Quality scores are recalculated whenever new financial data becomes available, typically after quarterly earnings reports. The underlying metrics (ROE, ROIC, debt ratios, etc.) come from company filings and are updated as soon as they're reported. For the most comprehensive and up-to-date data, visit the full COMP stock report.
📊 Full COMP Stock Report
Complete financial data, charts, all 250+ metrics, and detailed analysis for COMPASS, INC..
🎯 COMP Earnings Surprise (SUE)
See whether COMPASS, INC. is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.
🔍 Stock Screener
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