Compass Diversified (NYSE:CODI) Quarterly Earnings Preview and Financial Challenges

Core Insights - Compass Diversified (CODI) is set to release its quarterly earnings on December 24, 2025, with analysts projecting earnings per share of $0.61 and revenue of approximately $497.2 million [1][5] Financial Performance - CODI has restored full access to a $100 million revolving credit facility, enhancing its financial capacity and flexibility [2][5] - The company's price-to-sales ratio is 0.17, indicating that the stock is undervalued relative to its sales [3] - The enterprise value to sales ratio stands at 0.97, suggesting a balanced valuation relative to sales [3] - CODI's enterprise value to operating cash flow ratio is significantly negative at -38.10, indicating challenges in generating cash flow from operations [3] - The high debt-to-equity ratio of 2.73 reflects a heavy reliance on debt financing [4] - CODI's current ratio of 0.42 suggests potential liquidity issues, as it is below the standard threshold of 1 [4]