Compass Group Diversified Holdings, LLC (NYSE:CODI) is preparing to release its quarterly earnings, anticipating an estimated EPS of $0.45 along with projected revenue of $567.42 million.

• The company is also entangled in a class action securities lawsuit, which could influence investor sentiment and its financial standing.
• CODI’s financial metrics reveal a high P/E ratio of 65.20 alongside a problematic negative enterprise value to operating cash flow ratio of -32.31.

Compass Group Diversified Holdings, LLC (CODI) specializes in managing a varied range of businesses across industries, guiding these firms strategically and financially, thus sharing in the revenue generated by its subsidiaries.

The quarterly earnings report is scheduled for June 18, 2025. Analysts estimate an earnings per share (EPS) of $0.45 and expected revenue of about $567.42 million. This release comes as CODI faces legal challenges that could impact investor confidence, concerning allegations of securities fraud, with July 8, 2025, being the deadline for shareholders to secure their rights.

Financial metrics indicate a mixed outlook. The high P/E ratio of 65.20 suggests premium investor valuations on earnings. However, the negative enterprise value ratio of -32.31 raises challenges regarding cash flow generation. Nonetheless, CODI maintains robust liquidity, boasting a current ratio of 4.07, ensuring it can meet short-term liabilities.

Additionally, a price-to-sales ratio of 0.21 indicates that the market may undervalue CODI’s sales potential. Despite a debt-to-equity ratio of 1.37 signaling high leverage, potential risks could arise if financial difficulties occur or interest rates climb.

Highlighted by Levi & Korsinsky, the lawsuit against CODI alleges poor internal controls over financial reporting and the failure to disclose critical information, leading to substantial effects on the company’s reputation and finance. Shareholders are encouraged to consult legal counsel to explore options under federal securities laws.