Compass Diversified Holdings (NYSE:CODI) is a company that manages a diverse portfolio of businesses across various industries. On June 11, 2025, CODI reported earnings per share of $0.30, which was below the expected $0.47. The company’s revenue also fell short, coming in at $487.6 million compared to the anticipated $567.42 million.
The earnings miss comes amid a securities class action lawsuit against CODI. Kahn Swick & Foti, LLC, along with former Louisiana Attorney General Charles C. Foti, Jr., has reminded investors of the ongoing legal action. Investors who purchased CODI securities between May 1, 2024, and May 7, 2025, have until July 8, 2025, to file lead plaintiff applications.
Rosen Law Firm, a global investor rights law firm, is also urging CODI investors to consider legal counsel. The lawsuit alleges that CODI failed to disclose critical information and lacked effective internal controls over financial reporting. Investors with losses exceeding $100,000 are particularly encouraged to explore their legal options.
CODI’s financial metrics reveal a mixed picture. The company has a high price-to-earnings (P/E) ratio of 65.83, indicating that investors are paying a premium for its earnings. However, the price-to-sales ratio is low at 0.22, suggesting undervaluation relative to sales. The enterprise value to operating cash flow ratio is negative at -32.38, highlighting potential cash flow challenges.
Despite these challenges, CODI maintains a strong liquidity position with a current ratio of 4.07, meaning it has over four times more current assets than liabilities. However, the debt-to-equity ratio of 1.37 indicates a higher reliance on debt financing, which could be a concern for investors.
