Compass

COMP

Real Estate - Services · Real Estate

Price

$11.75

-0.17 (-1.43%)

Market Cap

$7.15B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Strong

Cash Flow

Weak

Stability

Weak

Valuation

Good

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Share count rising — dilution

+75.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 326.3M (2021) → 572.0M (2025)

Winston Score History

The full picture

Compass is a real estate technology company that helps people buy and sell homes. It builds software tools for real estate agents — things like apps to manage listings, track clients, and close deals faster. Compass operates across the United States and is one of the largest residential real estate brokerages in the country by agent count.

The company makes money mainly by taking a share of the commission when a home is bought or sold through one of its agents. It has over 30,000 agents on its platform and operates in dozens of major U.S. cities. Compass's main competitive edge is its proprietary software, which it uses to attract and retain top agents — but the business is heavily tied to the health of the housing market, and rising interest rates or a slowdown in home sales can quickly pressure its already thin margins.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+109.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+71.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$366M/ year

↑ Rising (+94% vs prior year)

5.3% of revenue

5.3x the sector average (1%)

R&D investment increasing — building for the future

Insider Activity

3.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$694M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Compass grew revenue 109% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

2.9%

Thin — 2.9% gross margin

Profit after running costs

Operating Margin

2.9%

Thin — 2.9% operating margin

Return on the money invested

ROCE

-1.2%

Weak — -1.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+67.8%

Fast-growing sales (+67.8% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

-3%

Weak — only -3% of profit becomes cash

Spare cash per sale

FCF Margin

-0.4%

Burning cash (-0.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

1.12

Elevated debt (1.12)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

109.4x

Expensive — P/E 109.4

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+78.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (109.4 → 30.6)

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Dividends

Not applicable for this business.

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