- Compass Group Diversified Holdings, LLC (NYSE:CODI) reported earnings per share of $0.52, beating the estimated $0.47.
- The company faces a class action securities lawsuit for alleged securities fraud between May 1, 2024, and May 7, 2025.
- CODI’s revenue reached approximately $581.8 million, surpassing the forecasted $567.42 million, with a price-to-earnings (P/E) ratio of 72.39.
Compass Group Diversified Holdings, LLC (NYSE:CODI) operates within the diversified industrial sector, managing a portfolio of niche businesses across various industries. It provides strategic guidance and financial support to its subsidiaries, competing with other diversified holding companies that invest in a range of businesses to generate returns for shareholders.
On June 4, 2025, CODI reported earnings per share of $0.52, surpassing the estimated $0.47. This positive earnings surprise reflects the company’s ability to generate profits above expectations. Despite this, the company faces a class action securities lawsuit, as highlighted by Levi & Korsinsky, alleging securities fraud between May 1, 2024, and May 7, 2025. The lawsuit claims CODI failed to disclose ineffective internal controls over financial reporting.
CODI achieved a revenue of approximately $581.8 million, exceeding the estimated $567.42 million. This revenue growth indicates strong sales performance. However, the lawsuit suggests that investors may not have been fully informed about the company’s financial health. Shareholders affected by the alleged fraud are encouraged to explore recovery options under federal securities laws.
The company’s financial metrics provide further insight. CODI has a price-to-earnings (P/E) ratio of 72.39, indicating high investor confidence in its earnings potential. However, the negative enterprise value to operating cash flow ratio of -33.08 suggests challenges in generating cash flow. The debt-to-equity ratio of 1.37 shows reliance on debt, while a current ratio of 4.07 indicates strong liquidity.
Shareholders should be aware of the ongoing legal proceedings and consider the financial metrics when evaluating CODI’s stock. The lawsuit’s outcome could impact the company’s financial standing and investor confidence. For more information, shareholders can contact Joseph E. Levi, Esq., or visit the lawsuit submission form provided by Levi & Korsinsky.
