Compass Diversified (NYSE:CODI) is a company that owns and manages middle-market businesses. It operates through various subsidiaries, focusing on long-term growth and profitability. Despite its strategic efforts, CODI's recent earnings report on January 14, 2026, showed an EPS of -$0.98, missing the estimated $0.70. The company's revenue was $472.6 million, falling short of the expected $637 million.
CODI's financial metrics reveal challenges. The negative P/E ratio of -2.83 indicates ongoing losses. A low price-to-sales ratio of 0.21 suggests the stock might be undervalued compared to its sales. The enterprise value to sales ratio of 1.14 provides a perspective on the company's valuation relative to its revenue.
The enterprise value to operating cash flow ratio is high at 222.90, showing low operating cash flow compared to its enterprise value. This, along with a negative earnings yield of -35.34%, underscores CODI's current unprofitability. These figures highlight the financial hurdles the company faces.
CODI's debt-to-equity ratio is 3.62, indicating heavy reliance on debt. This high leverage can be risky, especially in a challenging economic environment. The current ratio of 0.39 suggests potential liquidity issues, as the company may struggle to meet short-term liabilities with its short-term assets.
Despite these challenges, CODI remains committed to its strategic priorities. The company focuses on partnering with management teams to drive performance and invest in growth. This approach aims to enhance profitability and deliver long-term shareholder value, even amid a tough macroeconomic landscape.
