Company Overview - CompoSecure is a leader in the design and manufacture of premium metal payment cards, having pioneered the metal card form factor and embedded payment card technology [3][4] - The company was founded in 2000 and went public in December 2021 through a SPAC merger [3] - Major customers include American Express and JP Morgan Chase, which together accounted for 70.5% of CompoSecure's revenue in 2023 [3] Business Model and Revenue - In 2023, CompoSecure generated revenue of US$390.6 million, with a production volume of 31 million metal cards [3][12] - The company’s revenue is primarily derived from the sale of metal cards, with 82.3% coming from the USA [3] - Contracts with major clients like American Express and JP Morgan Chase have been extended, ensuring a steady revenue stream [3] Product Innovation - CompoSecure has introduced innovative features in its payment cards, including biometrics, dynamic CVV, and LED indicators [3] - The company has also entered the cryptocurrency market with the Arculus Platform, offering secure storage and transaction solutions for digital assets [7] Market Opportunity - CompoSecure's market share in the payment card industry is approximately 0.7%, indicating significant growth potential [13] - The company sees opportunities for expanding metal card adoption among existing customers and in international markets, particularly in Europe, Asia, and Latin America [13] Financial Performance - CompoSecure's revenue CAGR from 2019 to 2023 was 12.6%, with a notable increase of 41.3% in 2022 [12] - The company has consistently generated profit and free cash flow, with a net profit of US$112.52 million in 2023 [15] - As of June 2024, CompoSecure had a total diluted share count of 112.52 million, resulting in a PE ratio of 12.9 and a PFCF ratio of 14.3 [15] Management and Ownership Changes - David Cote became the majority shareholder after investing US$372 million in August 2024, simplifying the company's capital structure [12][15] - Cote's track record includes significant operational improvements at Honeywell and Vertiv Holdings, which may benefit CompoSecure [10][15]